Unregulated Secured Loan
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Unsecured&confused wrote: »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?
You can complain to whoever owns the loan now as they took on all rights and responsibilities for the loan itself.
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Idem now own the debt. The balance of the loan is now unsecured and they are no longer charging interest on it (yes really!) for some reason absolutely unknown to me? Maybe they have already had back what they paid for the debt when they took it over and anything more is now a bonus? We have no new agreement. I keep checking the balance - no interest is being added. I just don't trust them, but obviously I am reluctant to upset the apple cart, as it were. If there is no 'regulation' of the debt, why are they being so careful to not 'put us in a position of 'financial hardship'. It's almost as if they know something I don't legally?0
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I remember seeing adverts for these type of loans at the time. A woman gaily vacuuming her house with a phone in her hand while she agrees to a secured loan at a usurious interest at a variable rate, that never seems to go down, for the next fifteen years to finance a car that will last ten. Tiny print at the bottom of the screen mentioned that her house may be at risk if she didn't keep up the payments. I thought it was immoral then, and so it has proved.I used to think that good grammar is important, but now I know that good wine is importanter.0
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My main grievances are this:
-They preyed on financially vulnerable people
-They overvalued homes to lend people money they could probably never pay back
-They encouraged people to borrow more than they wanted or afford - refinancing other debt at higher interest rates and over a longer term - saying the loan may not be accepted if they didn't.
- The loans ran longer than the remaining mortgages - and didn't take retirement ages into consideration
- Interest rates were not reduced when the bank base rate fell
- They sold PPI alongside, again saying the loan may not be accepted if they didn't.
- They knew the law was changing in April 2008 and pushed these agreements through before this date
-Administration of the loans was poor. No statements, settlement figures not provided when requested etc.
If the loan had been Regulated, none of this would have been acceptable - but they deliberately sold them as Unregulated, so we would never have any comeback.0 -
They don't, but it's an expectation of a DCA to take into account financial difficulties when asking for payment.Unsecured&confused wrote: »Idem now own the debt. The balance of the loan is now unsecured and they are no longer charging interest on it (yes really!) for some reason absolutely unknown to me? Maybe they have already had back what they paid for the debt when they took it over and anything more is now a bonus? We have no new agreement. I keep checking the balance - no interest is being added. I just don't trust them, but obviously I am reluctant to upset the apple cart, as it were. If there is no 'regulation' of the debt, why are they being so careful to not 'put us in a position of 'financial hardship'. It's almost as if they know something I don't legally?
Which leads me to my next point. Idem are a debt purchaser of defaulted debts mainly. That explains the lack of interest on the remaining balance. Did you default at any point? If so, Idem bought the debt, and hence interest is frozen. It also means that they may not be the people to complain to. Did anyone else own the loan between these two companies?Unsecured&confused wrote: »My main grievances are this:
-They preyed on financially vulnerable people Potentially. Did you approach them or did they approach you. A key question because it's not counted as predatory lending if you're the one who sought it, but is potentially valid if they cold called you, for example.
-They overvalued homes to lend people money they could probably never pay back Their risk, not yours.
-They encouraged people to borrow more than they wanted or afford - refinancing other debt at higher interest rates and over a longer term - saying the loan may not be accepted if they didn't. You always have the option of not accepting this and going elsewhere.
- The loans ran longer than the remaining mortgages - and didn't take retirement ages into consideration Not a requirement and again, their risk.
- Interest rates were not reduced when the bank base rate fell Not really on, but if it's not in the written terms accepted, they don't have to.
- They sold PPI alongside, again saying the loan may not be accepted if they didn't. Mis-selling, and you've already claimed this back correctly.
- They knew the law was changing in April 2008 and pushed these agreements through before this date Correct, but they acted completely legally in doing so.
-Administration of the loans was poor. No statements, settlement figures not provided when requested etc. Because this was unregulated, this is just bad form, rather than a breach of the CCA, which it would have been.
If the loan had been Regulated, none of this would have been acceptable - but they deliberately sold them as Unregulated, so we would never have any comeback. In return, the APR should have been lower, or of course, the loan may not have been offered at all. There's always a trade-off.
All potentially valid, coments in red but are not legal advice, which I advise you seek. However, again, because it was unregulated, the only people who can address this legally are the courts. There is no regulator because, well if there was it would be a regulated debt.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
Thanks Stopit. As I said, just seem to be going around in circles due to the lack of regulation.
No, we never defaulted at any point, or missed any payments, or paid any reduced payments.
The loan was transferred to Webb Resolutions for a period between Picture and Idem.
Incidentally, Picture did actually contact us to encourage us borrow more, then encouraged us to borrow even more when I rang them. We initially had a much smaller loan with them and they were constantly sending us correspondence suggesting we borrow more.
I think I may consider a further letter. Initially requesting again that as a gesture of goodwill they accept a full and final settlement figure. I now consider that none of the companies concerned have been left out of pocket, and really need to see an end to all this and move on. Thoughts?0 -
What you do now is dependant on how far you wish to take any complaints.
As Idem own the loan, they do have responsibility for it, so long as you haven't broken your side via default, I can't see any reason why you can't complain to them, or the courts.
You can always offer another F&F, but they are under no obligations to accept.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
What you do now is dependant on how far you wish to take any complaints.
As Idem own the loan, they do have responsibility for it, so long as you haven't broken your side via default, I can't see any reason why you can't complain to them, or the courts.
You can always offer another F&F, but they are under no obligations to accept.
Thanks - TBH, can't see them accepting a F&F while we're being good and making regular payments. And regarding complaining to them, just very wary of upsetting them and risking them charging interest again. I know they are relying on this but not sure if I can risk it without any formal and legal backup. Think it's time to take some legal advice.0 -
Unsecured&confused wrote: »Thanks Stopit. As I said, just seem to be going around in circles due to the lack of regulation.
No, we never defaulted at any point, or missed any payments, or paid any reduced payments.
The loan was transferred to Webb Resolutions for a period between Picture and Idem.
Incidentally, Picture did actually contact us to encourage us borrow more, then encouraged us to borrow even more when I rang them. We initially had a much smaller loan with them and they were constantly sending us correspondence suggesting we borrow more.
I think I may consider a further letter. Initially requesting again that as a gesture of goodwill they accept a full and final settlement figure. I now consider that none of the companies concerned have been left out of pocket, and really need to see an end to all this and move on. Thoughts?
If they had originally turned you down for a loan, what would you have done? As much as you say they took advantage of your "vulnerability", you are an adult and have some responsibility in this. No one forced you to take any loan. You were quite happy to take the money and spend it at the time. Sorry to be so blunt but it's not all the fault of the loan company here.
If you really believe you have been treated unfairly, then take them to court and convince a judge.0 -
camelot1971 wrote: »If they had originally turned you down for a loan, what would you have done? As much as you say they took advantage of your "vulnerability", you are an adult and have some responsibility in this. No one forced you to take any loan. You were quite happy to take the money and spend it at the time. Sorry to be so blunt but it's not all the fault of the loan company here.
If you really believe you have been treated unfairly, then take them to court and convince a judge.
I really really wish they had turned me down. We would have really struggled short term, but, for example, the balance on my car finance would have been paid off 8 years ago instead of still paying for it now. I would probably still have a house. I know I signed it, I'm not disputing that it was a stupid thing to do - but I was convinced by them that I was doing the right thing at the time. I am not asking to be 'let off' what I owed, just that they accept a bit of the responsibility for what I now consider to be 'irresponsible lending' and compensate me for this in some way.0
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