Picture Finance

Benson_the_dog

Hello All

My wife recently contacted Picture Finance to see what the settle figure would be and i was astonished that the original £44,000 loan would have to be pay back with the interest coming to £88,000, we took the loan out about 5 years ago!

Is this legal

Regards

tomstickland

It depends on what is in the small print of the agreement that was signed.

Benson_the_dog

Surly that would only be a loan shark tactic and not a national company tactic, we weren't told about this

Browntoa

it's very vague on their web site

What happens if I repay my loan early? You're welcome to settle your loan in full before the end of the loan term. We will, however, charge an early repayment fee. Your loan consultant will talk to you about this as the cost will vary according to the size and duration of your loan.

also

4 EARLY REPAYMENT
4.1 If You wish to discharge your obligations under this Agreement You may do so at any time by paying to Us a sum, the Early Redemption Figure, calculated in accordance with clause 4.2 below plus a Security Release Fee as published from time to time in Our Fee Tariff.
4.2 If You settle before the end of the 36th month after the making of the Loan, the Early Redemption Figure will be the sum of the balance of the Loan (including all charges and arrears due, if any) plus interest up to the date of settlement, plus an amount equal to 6 months’ interest (at the rate in force at the date of settlement) charged on the Total Amount of Credit. If you settle the Loan in month 37 the Early Redemption figure will be the sum of the balance of the Loan (including all charges and arrears due, if any) plus interest up to the date of settlement, plus an amount equal to 5 months’ interest (at the rate in force at the date of settlement) charged on the Total Amount of Credit. Thereafter for each additional complete year the Loan is in place prior to settlement, the amount of interest added to the balance plus interest up to the date of settlement will reduce by one month until the Loan has been in place for eight years after which the Early Redemption Figure will be the balance (including all charges and arrears due, if any) plus interest up to the date of settlement.

4 EARLY REPAYMENT
4.1 If You wish to discharge Your obligations under this Agreement You may do so at any time by paying to Us a sum, the Early Redemption Figure, calculated in accordance with clause 4.2 below.
4.2 The Early Redemption Figure will be the sum of the balance of the Loan (including all charges and arrears due, if any) plus interest up to the date of settlement, plus interest (at the rate in force at the date of settlement) that would have become due had the Agreement continued to the end of the term, less the rebate calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004.