Companies in Default/FSCS Claims - Picture, London Scottish, Twopart

marshallka

Also another question you all need to know.... are you allowed to make lump sum, none penalty payments towards your loans??? Suppose you had the redress and wanted to pay it off the loan now then would this be allowed and does this reduce the repayments or does it reduce the term. So many unanswered questions???????????????????

Take a look here from Nemo loans (which are a similar type company

http://www.nemo-loans.co.uk/qna/nemo-loans-qna.php

busbyh

Just thinking again (my head hurts)

Picture/Target know exactly what they are doing by not insisting the loans are restructured.

They know it is tempting once you have the money in your hand , not to pay it back off your loan.

For example, if the loan is over a 25 year term and you have made 36 repayments at £100pm interest towards PPi element, you would be refunded £3600. But over the remaining 22 years you will pay £26,400 in interest (thats assuming you are only paying £100pm interest.)

So they will still be quids in!!!

Also to remember is, the interest rate will not stay at today's rates, in all probablity it will be a lot higher, as Picture loans are a variable rate.

It doesn't bare thinking about what the actual cost could be at the end of the term!!!

Please think carefully about everything marshallka has been saying since last night, it makes so much sense

busbyh

marshallka wrote: »

Also another question you all need to know.... are you allowed to make lump sum, none penalty payments towards your loans??? Suppose you had the redress and wanted to pay it off the loan now then would this be allowed and does this reduce the repayments or does it reduce the term. So many unanswered questions???????????????????

Take a look here from Nemo loans (which are a similar type company

http://www.nemo-loans.co.uk/qna/nemo-loans-qna.php

When we tried to sort out loan, we asked about paying off lump sum. We were given the option of reducing the payments or staying with the same payment and taking considerable years off the loan.

Also when it was eventually paid they did waive the settlement fee, much to our surprise!

pinknico

marshallka wrote: »

Mammamia, I have just worked out that if you had say 200 months left on your loan (don't know the exact) then you will be saving only £1200 and i bet your PPI interest is far more than that. That is why I said that these redress's are not taking into account the REMAINING interest on the PPI. If that is all you are getting and not having your repayments reduced by whatever INTEREST WOULD have been repayable on the PPI then you are being done. I have been harping about this since last night.

Surely you would only be getting done if you dont pay the money back that the FSCS give you?

In a nut shell if you want reduced payments or shorter loan term pay Picture back the premium the FSCS give you, this may still leave you with a bit of interest paid to date to do with what you want.

I will be paying some to Picture and some off other debts but thats just my choice.

Mammamias payments have only reduced a bit as all they have done is cancel the PPI.

I would like to see Picture try and be awkward about giving a penalty for paying off a lump sum in relation to mis sold PPI. I would be in touch with the FSA immediatly.

I will just be VERY happy if my claims go through.

marshallka

Just wanted to post this as it may help some but cannot be absolutely sure this is correct but here goes anyway......(working on mamamias and really hope you do not mind)

Loan£ 56000
Repayments against the loan £647.91 x 180 = £116,623.80
Repaid for 4 years £31,099.68
Remaining after 4 years repayments on the Loan £85,524.12 (This is what your loan balance should have looked like today without the PPI added)


Loan PPI £14,096.00
Repayments against the PPI 163.09 x 180 = 29,356.20
Repaid after 4 years 7828.32
Remaining to pay on PPI £21,527.88

LOAN THAT YOU ACTUALLY HAVE NOW TO INCLUDE BOTH LOAN AND PPI TOGETHER

Total loan 811.00 x 180 = £145,980.00
Repaid 48 x 811 = £38,928.00
Remaining after 4 years £107,052.00 (This is what your loan balance is likely to be now without repaying the PPI over to Picture)
Difference between with and without PPI £21,527.88


If the redress was to picture the 19.5K (I realise this has been reduced cause of how the FSCS works) and that would or should reduce your repayments by the amount you have been making against the PPI each month (being the £163).........


I realise also that this was most probably variable so the repayments and interest would not have stayed the same.


Interest worked at 11.3% (thereabouts)

Really am trying to look out for you as I know how they can rip you off and continue to do so....

An Example here of How FOS calculates redress

Loan and PPI policy still in place at time of FOS decision.
Lender agreed for the cancellation of the PPI policy and restructuring of loan. E.g.
Overall loan repayments £250 per month but would have been £200 without PPI, term of policy was 60 months and complaint settled after 20 monthly payments.
·Return excess monthly payments of £50 x 20 payments up to date of settlement (£1000)
·Add interest to each payment of £50 at 8%simple, from date of each payment until lender repaid.
·Arrange loan to be restructured, so remaining 40 monthly payments reduced to £200
·Pay borrower £300 for extra inconvenience caused.




If worked out this way it would have been 163.09 x 48 = £7828.32 back to consumer and then the loan remaining 11 years to be made where the repayments are that of £648.00 per month which is without the PPI.

Going by that it would be opening a loan with about £48.5K (without interest) balance and then having it again over only the remaining months of 132 (11 years) and an interest rate again of 11.3% (as this should stay the same) and then the repayments would be about £645.00 (ish????) a month...... If this is case here then that means the mamamia made 48 payments of £648 (which was without the PPI as according to the Ombudsman method the PPI is paid over as the cheque) against the original £56000 and this totals £31,104.00 BUT of that 31K only £7500 has come off the capital...although must admit it hurts when you see just what these loans cost in the long run....that was near on £500 per month in interest alone.


Sorry to post this but just making a point and putting things down like this you can see just how much these loans are actually costing and why trying to get rid ASAP is probably the decision when you see it all on paper broken down.....

di3004

Our email from Deloittes received this morning from deloittes:

I refer to the above and our previous correspondence regarding this case. I am sorry for the delay in contacting you again. I confirm that we have received the updated Declaration and Consent forms that you sent.
Please can you advise if the second Nemo loan, that you took out directly with Nemo in July 2006, is still running? If not, please advise how it came to be paid off, did you redeem it from your own resources or via another loan from a new lender? If you took a loan from a new lender, please provide the contact details, including any loan reference number, for this new lender as we will need to contact them for information to help with our assessment of your claim.
I look forward to hearing from you in due course and would like to thank you for your assistance in this matter.

Deloitte LLP
Direct: +44 (0) 20 7007 9927
Main: +44 (0) 20 7936 3000

Seems that they must have the lenders details as well, they are already aware that we were successful with the loan advance with nemo through the FOS, but need the details on how this was settled, which was that we remortgaged.

And also sent them details from the FOS about this and to pursue twopart separately which was arranged by Twopart for the first loan.

pinknico

Glad to see that they are at least assessing your claim Di, are you still waiting for them to be declared in Default?

di3004

pinknico wrote: »

Glad to see that they are at least assessing your claim Di, are you still waiting for them to be declared in Default?

Thanks Pinknico.;)
I have checked on the FSCS website, but nothing confirmed as yet.X

marshallka

di3004 wrote: »

Our email from Deloittes received this morning from deloittes:

I refer to the above and our previous correspondence regarding this case. I am sorry for the delay in contacting you again. I confirm that we have received the updated Declaration and Consent forms that you sent.
Please can you advise if the second Nemo loan, that you took out directly with Nemo in July 2006, is still running? If not, please advise how it came to be paid off, did you redeem it from your own resources or via another loan from a new lender? If you took a loan from a new lender, please provide the contact details, including any loan reference number, for this new lender as we will need to contact them for information to help with our assessment of your claim.
I look forward to hearing from you in due course and would like to thank you for your assistance in this matter.

Deloitte LLP
Direct: +44 (0) 20 7007 9927
Main: +44 (0) 20 7936 3000

Seems that they must have the lenders details as well, they are already aware that we were successful with the loan advance with nemo through the FOS, but need the details on how this was settled, which was that we remortgaged.

And also sent them details from the FOS about this and to pursue twopart separately which was arranged by Twopart for the first loan.

I take it they mean the settlement of this. I remember you posted it on here cause I worked it out. Did you not send it to them then?

di3004

marshallka wrote: »

I take it they mean the settlement of this. I remember you posted it on here cause I worked it out. Did you not send it to them then?

Yes it was sent, its just that it seems that they require the details from the lender as well.;)