Picture Finance were they in the wrong

JSF23

http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft1105.pdf

3.6 There should be transparency about the circumstances in which rates or charges may change, in particular where they may be varied at the discretion of the lender or by reference to some particular factor, for instance as a result of an increase in the lender's input costs. If rates are stated to be variable but do not vary in line with Bank of England base rate, this should be made clear, and if a particular rate is tracked, this rate should be stated.

4.4 If rates or charges are variable, this should be made clear. The potential implications of such variations should be explained, including the impact on the periodic instalments and / or the amount payable. Rates should only be increased on a loan to recover genuine increases in costs which have an effect on that loan and should not be misused, for example, to take advantage of a borrower's lack of ability to end the agreement. Clear explanations should be given to borrowers prior to rates or charges changing.

Ask them what costs have increased that effect your loan.

As their cost of borrowing will have reduced about 80% their reply will be interesting.

You need to take any issue like this to court as the regulators are incapable of dealing with it.

Oh and ignore the posters who say "you signed so repay".

The same was probably said about PPI. Also the cahoot lot appear to have won a battle.