IDEM Servicing/Picture Loan

MarthaBeck

Hello everyone,

it's my first time posting here and I hope you can help me.

In September 2005, we took out a secured loan with Picture of 35,000 over a period of 328.67 months (which now strikes me an odd period). I know it was a stupid thing to do now, but hindsight is a wonderful thing. The apr is 10.9%.

We have been paying this loan back (125 months or 10 years, 5 months) and the total we paid so far is £42,500 (I spare you the pennies).

I called them last month for the balance and it is £31.500, I was stumped as according to my calculations (which could be wrong), the balance should be less than 25K. I asked them provide me information on how they calculate the interest and for a full statement and all I got is a list of all the payments we made.

I really want to settle this account, but I am damned if I give them a penny too much.

So I did some calculations, according to their projections my total repayment will be £128,000 by the time the agreement ends, but the calculator I used says it would be a bit over £100k.

We are not in arrears and only had one month when a DD was returned due to my husband's salary being late. We paid it as soon as the salary was in the account, I think it was 4 days late.

I have this feeling that I am being conned. I am not looking for an "easy" way out. Can anyone point me into the direction of someone who can advise? Or maybe a procedure to undertake?

Thanks you ever so much

M.

TadleyBaggie

According to a loan calculator I used, based on the above figures (but had to round the months up to 329), your monthly payment would be £335.02 and the total repayable would be £110,221.53.

MarthaBeck

Yes but we are paying £380 (and have done so for the past 8 years and before that it was 360.

MarthaBeck

And even so, it would still be a lot less than what their projection is saying.

TadleyBaggie

If your payments changed, that would assume the APR increased at some point. So was it initially 10.9% but is now some higher figure?

antrobus

MarthaBeck wrote: »

Yes but we are paying £380 (and have done so for the past 8 years and before that it was 360.

But

MarthaBeck wrote: »

...We have been paying this loan back (125 months or 10 years, 5 months) and the total we paid so far is £42,500 (I spare you the pennies).

£42,500 divided by 125 is £340.

TadleyBaggie wrote: »

If your payments changed, that would assume the APR increased at some point. So was it initially 10.9% but is now some higher figure?

The interest rate on Picture Loans was variable it seems.

https://forums.moneysavingexpert.com/discussion/4383497

MarthaBeck

sorry that was me not adding up the list of payments correctly, we have actually paid 46,800 (excel sum error)

The interest rate is now 8.6 (I asked, but I don't know when it changed as I have not got a statement since it was WEbb).

Anyway I don't want to discuss my dodgy mathematics, I have a feeling something is not adding up and I want to find out where I can go for advice.

So back to my original questions:

a) How do I get IDEM to give me a proper statement information as to how much I paid over the years, what the interest rates were.

b) Where do I go from here for advice

Thank you

antrobus

MarthaBeck wrote: »

sorry that was me not adding up the list of payments correctly, we have actually paid 46,800 (excel sum error)

The interest rate is now 8.6 (I asked, but I don't know when it changed as I have not got a statement since it was WEbb).

Anyway I don't want to discuss my dodgy mathematics, I have a feeling something is not adding up and I want to find out where I can go for advice. ....

Dodgy arithmetic aside. £46,800 of repayments would suggest that a settlement figure of £25k was more on the money than one of £32k. There ain't no PPI involved is there?

MarthaBeck wrote: »

...
So back to my original questions:

a) How do I get IDEM to give me a proper statement information as to how much I paid over the years, what the interest rates were....

You request a statement. You complain if you don't get one.

MarthaBeck wrote: »

...
b) Where do I go from here for advice

Thank you

Then you complain to the FOS. I assume that they have jurisdiction.