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

marshallka

beaniebabe wrote: »

I hope they give it us all back but am not bothered either way. The thing that bothers me is if we do get it all back and dont pay it off the loan then we will in the long term acumilate more interest!!! An d I like others will be tempted to spend!!!!

I see your point there beaniebabe. You have to be careful don't you when its secured.

pinknico

Lian1969 wrote: »

Hi all,
I called the FSCS, TODAY, got a really nice man (for a change).
They told me that they have not made a desion on how they will pay out.
He said that we would defo get all the payments back that we have paid in, then he said they could talk to the Loan provider to restructure the loan, or pay the whole lot back to us.

I think this is a waiting game im afraid. He said that this is all new to them with PPI claims.
Sorry that it has taken long to let you know about my call.

Lian xx

Then they cant be making any payments soon if they havent even worked out how they will pay out on the claims!
The only definate thing is that the FSCS will not restructure loans,if anyone will it will be Picture(why does this not fill me with confidence!)

I agree with Beaniebabe giving back all the premium for us to take off sounds nice but I would be tempted to spend more than I should and still be in the same debt debt I am now so will make a resolution now to pay this money to Picture minus what ive paid out so they cant get any more interest off me than they have to.

marshallka

pinknico wrote: »

Then they cant be making any payments soon if they havent even worked out how they will pay out on the claims!
The only definate thing is that the FSCS will not restructure loans,if anyone will it will be Picture(why does this not fill me with confidence!)

I agree with Beaniebabe giving back all the premium for us to take off sounds nice but I would be tempted to spend more than I should and still be in the same debt debt I am now so will make a resolution now to pay this money to Picture minus what ive paid out so they cant get any more interest off me than they have to.

And also Pinkinico, some would have paid their loans off and had rebates against the insurance already. I know these rebates are not much soemtimes but there is interest rebated which is difficult to work out and then if they repay the whole of the PPI and interest again they would end up thousands in pocket. :eek:

pinknico

I should think those who have had their loans paid off will be easier to calculate and Deloittes will sort that out in the refund calculations as if you paid it off you are entitled to it all back.They are in talks with the FOS about calculations so may well use their formula(minus the 8%) that is used for settled loans.
Loan and PPI policy terminated early before FOS decision.
Overall loan was for £23,000 (monthly payments £430) – but it would have been £18,000 with monthly payments of £340 without PPI. Policy term was 60 months; loan and policy cancelled are 23 monthly payments.
Borrower was required to pay £15,500 to settle the loan (after the business had taken account of the rebate of premium he was due of £1,200; but if he had not had PPI added to loan, the smaller loan of £18,000 would have cost £13,000 to settle at the same point.
So borrower had paid lender £90 a month more than he would have done, had the financial business not mis-sold the PPI policy; and £2,500 more to settle the loan after 24 months.
· Return 24 monthly payments of £90 to date of settlement (£2,160)
· Calculate difference between settlement costs incurred when borrower ended loan early and those he would have incurred had he settled the loan without the additional PPI element. (£15,500 - £13,000 = £2,500) pay difference to borrower.


According to Deloittes/FSCS they wont get involved in recalculating still running loans, just what money needs to be returned.

marshallka

pinknico wrote: »

I should think those who have had their loans paid off will be easier to calculate and Deloittes will sort that out in the refund calculations as if you paid it off you are entitled to it all back.They are in talks with the FOS about calculations so may well use their formula(minus the 8%) that is used for settled loans.
Loan and PPI policy terminated early before FOS decision.
Overall loan was for £23,000 (monthly payments £430) – but it would have been £18,000 with monthly payments of £340 without PPI. Policy term was 60 months; loan and policy cancelled are 23 monthly payments.
Borrower was required to pay £15,500 to settle the loan (after the business had taken account of the rebate of premium he was due of £1,200; but if he had not had PPI added to loan, the smaller loan of £18,000 would have cost £13,000 to settle at the same point.
So borrower had paid lender £90 a month more than he would have done, had the financial business not mis-sold the PPI policy; and £2,500 more to settle the loan after 24 months.
· Return 24 monthly payments of £90 to date of settlement (£2,160)
· Calculate difference between settlement costs incurred when borrower ended loan early and those he would have incurred had he settled the loan without the additional PPI element. (£15,500 - £13,000 = £2,500) pay difference to borrower.


According to Deloittes/FSCS they wont get involved in recalculating still running loans, just what money needs to be returned.

So who will be doing that then? It seems silly to not get involved in the redoing of the loans when they will have all the paperwork for the redress's. It could mean then that people will get back what they are due or what they have paid and then still be paying repayments under the old agreements for some time until all the paperwork is passed over again. Again this will be costing more than you would be repaying as you should make repayments without the cost of the PPI. I cannot see how they can do this????

Lian1969

beaniebabe wrote: »

Thanks Lian You have done an excellent job there. :A Was the man basically saying that it could go either way (We could get what we have paid to date and they could restructure our loan, or we could get the full premium back!)

Hi, Yes that was what he meant, could go either way,they are still in discussions with Picture/Target.
We will get all the premiums back.

Lian

pinknico

I think in Lians post it said they will ask Picture to restructure the loans if the FSCS only refund premiums paid and not the full cost of the ppi.

I know its crazy that they wont do this themselves when they've got all the figures and to say they are new to mis selling ,they have had over a year to look into it!!

marshallka

pinknico wrote: »

I think in Lians post it said they will ask Picture to restructure the loans if the FSCS only refund premiums paid and not the full cost of the ppi.

I know its crazy that they wont do this themselves when they've got all the figures and to say they are new to mis selling ,they have had over a year to look into it!!

But the FSCS say that they redress for "financial loss" and if they repay the whole amount (say someone only had the loan for 1 year and their TOTAL PPI and interest totalled £20K and they had only made £1K of repayments against it so far) then it would be like increasing your loan total by that amount (and interest would be charged on it too) and you would be no better off unless you paid it back to the loan. It would be better to take it off the loan and get the repayments affordable and whatever you have paid to them so far is yours to do as you please. That is how the FOS do it. I think they would run into trouble if they redressed for any amounts which are "due" as well. Nothing in the loan would change then would it and people may run into difficulties again making repayments. If it were me I and it was secured I would just want rid of them sooner rather than later as they would have nothing to lose by increasing (if variable) their interest rates again.

pinknico

Totally agree Marshallka.
And if its Picture doing it I want someone like the FOS overseeing the figures they come up with and to make sure the interest rate is the same.

marshallka

pinknico wrote: »

Totally agree Marshallka.
And if its Picture doing it I want someone like the FOS overseeing the figures they come up with and to make sure the interest rate is the same.

It could be like Martin said about Firstplus in that they have nothing to lose and they may up the rates to please themselves. Was yours variable Pinknico? I know with FP that everytime I wanted to settle with them my interest rate suddenly jumped at the same time of requesting the settlement. It was like being trapped.