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

Mammamia

marshallka wrote: »

FORGET THIS POST - I HAVE PROVED MYSELF WRONG......Been busy on my documents all morning trying to get some proof in leymans terms of why you are STILL being ripped off by Picture. What I really want to know is some things from mamamia, its what the loan would cost to SETTLE it now that is important??

I have also got to work out that if she only had the loan without the PPI added and paid 48 repayments (just the ones against the loan here) at the same interest rate what the settlement would have been if she settled now.

This will show just how much they have ripped you lot off by by doing it this way and according to this (I don't know for definate but will do my damndest to find out) by approx how much and its not a few quid either. I know you are all happy with the redress's now but for how long if you realise there is another few grand... I need someone who can work out proper settlements.... both with and without PPI. I can do the old ones rule of 78 on the calculator but this new method does not have a calculator. May just ask on the loans thread....If Picture are reducing the loans also then all fair well and good but if they are staying the same or as mamamia posted earlier, only reducing by a few quid per month then they still are not doing this correct in my eyes. In fact it would probably be better for a company to close down on purpose if they think they are having to redress all PPI claims and let the FSCS deal with them.

I will not settle until I have it straight in my own head and I know its nothing to do with me but its just another example (up to yet anyway and like I say, if they are redoing the loans as well that is OK) of how ALL these institutions are ripping us off daily. If someone can see where I am going wrong then feel free to put me right.

Forget this - I am cracking up

You are right, they are definately still ripping us off. I have posted details at the end of this thread (page 63 I think), which gives details of what Picture have said to me today. I've paid them £800 per month for 34 months and they are saying that I have only paid £6k off the loan and if I don't hand over the cheque the PPI amount will remain on the loan with interest for the next 11 years!! This can't be lawful surely!!

Mammamia

marshallka wrote: »

I did this today but cannot say if its correct for definate as not a financial advisor and hope you do not mind.....



Lets say that mamamia had the loan originally without the PPI.

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 but includes the interest too). Suppose she wanted to settle this today? How much would you say she would settle? I work it like this from the FSA loan calculator that the loan was over 15 years, 11.3%, repayments 647.

If you type the above figure into this calculator here
http://www.moneymadeclear.fsa.gov.uk...oan_calculator

You get the INTEREST payable over the whole of the loan as 60,474.99. Now if she has made repayments of 647.91 x 48 that is 31099.68 so owing is 85.5K

Now if you work the interest out and divide it by 180 months (I know this does not happen in real life but lets just say it did) it would be 335.97 a month so mamamia is paying 336 for the interest on the loan and then 311.91 capital. If she has made 48 capital repayments against the loan that would be near on £15K paid off it so owing would be about £41K. She would have to pay the settlement interest on top of this but could in effect settle round a bout this. (Have no idea if I am correct??)

Then you look at mamamia did not pay 647.91 a month, she paid 811 cause of the PPI. She made 48 payments of the this 163.09 against the PPI but should in effect have this back to her totalling near on £8K.... so if it was this way she has overpaid by £8K and needs this back and could in effect settle at £33,000...................

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Now her loan originally included PPI and the FSCS says her loan will stay the same ish bar this 6 quid a month reduction and they have paid her back £19.5K in effect although cause of the way they compensate its 17K odd.

Her loan here
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)

Now if she took from this redress the £7828.32 which is what she has been paying a month when she should not have done away and used it like the FOS would redress in the form of a cheque from the 19.5K redress you are left with an amount of £11672.00. If this amount was then paid off the remaining balance on the loan there would be £95380 (including interest) owing.

Going back to the FSA calculator again and feeding these orginal figures in from her original agreement then the total interest payable would have been 75,697.41. Divide that by 180 months and its 420.54 a month in interest (OUCH!!!!). That means that 390.46 was coming off the loan capital each month. 390.46 x 48 months = £18742.08 off the original £70096 (loan and PPI loan) leaves a balance of 51353.92 capital left if she were to settle it now. If she paid the 11672 over to them now that would leave a balance of 39681.92 in capital. Then if the other redress was also used against the loan the settlement would reduce again to £31K

Thank you so much for all the work you have put into this, so with them saying I could settle at 50k, the amount should actually be 31K. This would seem a much fairer amount. I will keep these workings out for the advisor, who may come up with similar figures. If they are actually ripping us off, do you think it would be the FSCS again who would need to investigate this?

beaniebabe

Mammamia wrote: »

You are right, they are definately still ripping us off. I have posted details at the end of this thread (page 63 I think), which gives details of what Picture have said to me today. I've paid them £800 per month for 34 months and they are saying that I have only paid £6k off the loan and if I don't hand over the cheque the PPI amount will remain on the loan with interest for the next 11 years!! This can't be lawful surely!!

Are they actually demanding that you give them the cheque. Thats aweful

marshallka

Mammamia wrote: »

Thank you so much for all the work you have put into this, so with them saying I could settle at 50k, the amount should actually be 31K. This would seem a much fairer amount. I will keep these workings out for the advisor, who may come up with similar figures. If they are actually ripping us off, do you think it would be the FSCS again who would need to investigate this?

I worked out the only way they are ripping you off is if you do not pay the redress over to the loan. If you had the full 19.5 (although i know that its not that much cause of the 90% bit) then your balance would be this £30 odd K (but that is paying the lot over) but if you keep the PPI and use for other things then your loan will stay exactly as it is.

Mammamia

beaniebabe wrote: »

Are they actually demanding that you give them the cheque. Thats aweful

They are not demanding, but are making it very plain that it will cost me alot more money if I don't. They also said that I should really pay them the whole cheque for 17K, even though the original PPI was 14K. I just don't trust this company at all and will continue to fight for a fair deal. Trouble is I thought it would all be over once I won the comp, but instead it seems to have a whole new can of worms!!:mad:

marshallka

beaniebabe wrote: »

Are they actually demanding that you give them the cheque. Thats aweful

They look to be giving you the choice in that you can carry on the loan payments as they are and have this extra money as another loan (be in more debt in the long run) or PUT YOURSELF back into the position as if you never had the PPI. Its your own choice I think...They are hoping that people will use it for other things and then they get all the interest in the long run.

beaniebabe

Mammamia wrote: »

They are not demanding, but are making it very plain that it will cost me alot more money if I don't. They also said that I should really pay them the whole cheque for 17K, even though the original PPI was 14K. I just don't trust this company at all and will continue to fight for a fair deal. Trouble is I thought it would all be over once I won the comp, but instead it seems to have a whole new can of worms!!:mad:

To be honest If I were to get anything back I was going to pay them the PPI back and use the rest for other debt. My question is, would they refuse to accept just the PPI. My other argument is that if we were to give them the whole lot back I can inagine them putting the interest rate up even higher in order to bring our reduced repayments back to what they were before we had the ppi refunded.
I do understand what Marshallka is saying and agree with it, but like you I do not trust this cowboy company:mad:

pinknico

Can I just clarify Mammamia, your loan with PPI was £70000, £56000 without PPI?

Mammamia

marshallka wrote: »

I worked out the only way they are ripping you off is if you do not pay the redress over to the loan. If you had the full 19.5 (although i know that its not that much cause of the 90% bit) then your balance would be this £30 odd K (but that is paying the lot over) but if you keep the PPI and use for other things then your loan will stay exactly as it is.

My understanding is that even if I paid them the whole cheque, my settlement loan would still be 47K. I am considering paying them the 14K, but I am uncertain if the settlement amounts are based on if I had only taken the 56K loan in the first place and hadn't taken out the 14K PPI.

marshallka

Mammamia wrote: »

They are not demanding, but are making it very plain that it will cost me alot more money if I don't. They also said that I should really pay them the whole cheque for 17K, even though the original PPI was 14K. I just don't trust this company at all and will continue to fight for a fair deal. Trouble is I thought it would all be over once I won the comp, but instead it seems to have a whole new can of worms!!:mad:

Oh how I just knew this would happen.... whyever they redress like they do I will never know...