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IDEM Servicing/Picture Loan

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.

Comments

  • 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.
  • Yes but we are paying £380 (and have done so for the past 8 years and before that it was 360.
  • And even so, it would still be a lot less than what their projection is saying.
  • 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
    antrobus Posts: 17,386 Forumite
    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.
    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
  • 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
    antrobus Posts: 17,386 Forumite
    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.
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