Unregulated Secured Loan

Unsecured&confused

Been going around in circles for years trying to find an answer to this - wondered if anyone at all on here can help me?
We have an old unregulated loan (originally Picture Finance) which was secured on our property. Like many back then (2007), we were extremely vulnerable financially and had no idea what 'unregulated' meant. We soon came to learn that it means that the loan company can actually do whatever they want, and we have absolutely no protection whatsoever.
Rates rose when the base rate did, but never came down when it reduced. We were encouraged to borrow more than we wanted on a house valuation which it was never going to achieve. Also sold us PPI (since reclaimed) We never received any loan statements. Or settlement figures when we asked for them (this is a CCA breach in itself).
Long story short, we actually sold the house 2 years ago, 8 years into the 25 year loan term. The sale did not settle the mortgage and the loan, leaving us with a balance of £60000 still owing, which Idem (the current owners of the debt) very kindly let us take with us to our new 'home' as an 'unsecured loan' (no new agreement received). We were not allowed to keep any proceeds out to put a deposit on a new house, so we had no alternative but to rent.
Idem were strangely 'co-operative' throughout the whole sale process (I suppose they would be as they were getting a £23k bulk payment from the sale?) and seemed very keen to not be seen to be putting us in 'financial hardship' (their words). Problem is - they are. We are now effectively homeless, and despite good wages, cannot now get a deposit together for a house as we are paying rent and substantial monthly payments to them.
We did offer them a full and final settlement a few years ago - so tried that one - they didn't accept. But we have never missed a payment so they won't will they?
Now don't get me wrong, I accept that we borrowed the money, but I do believe we were taken advantage of by being sold an unregulated loan, so we appear to not have a leg to stand on regarding unfair interest, mis-selling or poor account admin .
I have been down every single route time and time again - not regulated as taken out Sep 2007 and over £25k (April 2008 and it would have been Regulated!). So FOS don't want to know. Anyone know if covered by CCA or governed by OFT? - Can't seem to find a definite answer.
Sorry for the long post but just desperate to know if anyone can help out - thinking I now need advice from someone a bit more legal minded?

Pixie5740

Have you contacted one of the debt charities for advice?

• National Debtline
• CAP UK
• Step Change

Unsecured&confused

I guess pride has made me try to sort things myself? As I said, we did naively sign the contract. We actually have no problem 'managing' the payments, it's just that I do feel aggrieved that we were taken advantage of and there appears to be no-one to offer us support/advice as the loan was unregulated. I'm not sure any of these debt companies could help with this? I feel we have been well and truly done over and just can't see any light at the end of the tunnel.

Pixie5740

Unsecured&confused wrote: »

I guess pride has made me try to sort things myself? As I said, we did naively sign the contract. We actually have no problem 'managing' the payments, it's just that I do feel aggrieved that we were taken advantage of and there appears to be no-one to offer us support/advice as the loan was unregulated. I'm not sure any of these debt companies could help with this? I feel we have been well and truly done over and just can't see any light at the end of the tunnel.

I have given you the names of three debt charities not companies. There is a big difference.

You want support and advice about your debt yet want to sort things out on your own? That makes no sense. Giving people with debt support and advice is exactly what these charities have been set up to do.

sourcrates

Hi,

Unfortunately as your loan was an unregulated product, the usual channels of redress, as you well know now, are unavailable to you.

A CCA regulated loan would of covered you for the problems you have been experiencing, your only hope is to make a written complaint to the original lender, and hope they will look at it favorably.

There was a case in 2015 where Clydesdale bank were accused of mis-selling these loans by the Treasury Select Committee (TSC), they accused the bank of :

"failing to explain to customers the potential risks involved with these products, adding that customers could not be reasonably expected to anticipate potentially high levels of break costs".

"these products differ from other interest rate hedging products (IRHP) in that they are unregulated. This means that regulators are now powerless to enforce compensation for customers who were mis-sold by Clydesdale".

“Many of its customers did not understand the product and could not have been reasonably expected to do so.
“Regulators have been powerless to provide redress to those affected by wrongdoing.”



A spokesperson for the FCA said, “We are considering the committee’s report, but nothing more at this stage".


So far, nothing else on this from the FCA.

sourcrates

Pixie5740 wrote: »

I have given you the names of three debt charities not companies. There is a big difference.

You want support and advice about your debt yet want to sort things out on your own? That makes no sense. Giving people with debt support and advice is exactly what these charities have been set up to do.

I think the OP is looking for ways to claim against this bank for mis-selling of the product, rather than out and out debt advice.

[Deleted User]

You could take them to court, which I expect would be expensive, or you could go bankrupt and write the debt off that way. As has been said, speak to a debt charity and get some advice from them.

Unfortunately, though, unless you do either of things I said, it's likely you will have to pay what the agreement says you need to pay.

StopIt

Alas, an unregulated product means that the CCA doesn't apply.


The CCA is a set of regulations that most consumer lending has to follow, but for secured lending, this sort of loan was pretty common.


It means the only people you can complain to is the original lender, or the courts. You can do the first for free, and the latter will cost you if you lose.


If you're wanting to go the legal route, you'd need to seek specific legal advice for your case.

Unsecured&confused

Thank you Sourcrates - I will follow this up. What really gets me is that the removal of the £25k threshold for Unregulated loans was in the pipeline (passed in April 2006, to be implemented in April 2008) at the time we signed this loan. It seems we were taken advantage of at a time when these loan companies would have been well aware that the rules were about to change?

Unsecured&confused

Thank you Camelot1971. Bankruptcy has never been an option due to my partner's job.

Unsecured&confused

Thank you Stopit. But Picture Finance don't exist anymore? So who would I complain to as it is unregulated so no-one oversees it? See why I'm so frustrated?