Picture Finance / IDEM Servicing

dal2008 · 12 April 2016 at 1:40PM

Afternoon

Please be aware I stupidly took out a Picture Finance loan in 2007.

Loan was for £25,000

I have made 90 payments of at least £267.98 , at least £24,000 and the outstanding balance is £26,000.

I have read some forum posts stating that I could dispute mis-representation?

I have also read that there is a dispute that these are variable loans but the loan has never gone below 9.6% even though Libor rates/BOE is 0.5?

Before anyone says I shouldn't have taken the loan out please do not waste your time (I KNOW THAT NOW)!

Kind Regards

Gaz83 · 12 April 2016 at 2:00PM

dal2008 wrote: »

Afternoon

Please be aware I stupidly took out a Picture Finance loan in 2007.

Loan was for £25,000

I have made 90 payments of at least £267.98 , at least £24,000 and the outstanding balance is £26,000.

I have read some forum posts stating that I could dispute mis-representation?

I have also read that there is a dispute that these are variable loans but the loan has never gone below 9.6% even though Libor rates/BOE is 0.5?

Before anyone says I shouldn't have taken the loan out please do not waste your time (I KNOW THAT NOW)!

Kind Regards

In what way do you feel you were misrepresented?

You mention the loan has never gone below 9.6%, has it gone above it?

You say payments were at least £267.98, have you paid more than this on occasion?

Gaz83 · 12 April 2016 at 2:03PM

Also: from your older posts, you said your loan with Picture was £30,000 - what's changed in this regard?

dal2008 · 12 April 2016 at 2:16PM

Afternoon, thanks for your reply.

Sure, the loan amount was for 25000, Picture added 5000 PPI to the total loan so the loan amount was 30,000. I found this out after and in discussion with FCSC regarding this....

Some months I have paid £500 with the hope of paying less interest but the interest was still £210 a month.

Ok in terms of mis-selling I am enquiring if any other people who have had a Picture Loan have any valid input or feedback

In terms of being mis-sold I have researched and some of the below might be valid.

1) I was not informed that the 5000 would be added to the loan and I would be paying 25 years of interest on it!

2) loan is variable but even though the bank rate is 0.5 this 2nd mortgage loan hasn't decreased (unlike my Halifax Mortgage)...

3) My lack of financial knowledge was used to take advantage of me. I should have been advised to discuss my debt issue with StepChange and setup a Debt Management Plan instead I was encourage to consolidate.

4) The total amount repayable was never made clear, with my mortgage I received a key facts document

5) with my unsecured debt I am in a DMP with StepChange and fortunately the companies involved have frozen interest and charges. Stepchange are unable to assist with this loan because its secure

6) I discussed this issue with Idem, they said there are unable to assist because initial company has gone bankrupt

7) I spoke to FOS and they are unable to help. FSCS can only deal with the PPI not the entire loan

I am alot wiser and smarter now and would never make the same mistake.

Any help or advice is very much appreciated.

Gaz83 · 12 April 2016 at 2:25PM

Thanks for that, but it isn't very clear what you're actually wanting the outcome of all this to be.

Do you have a copy of your original paperwork?

By the way - variable rate loans don't tend to go down. Just up.

dal2008 · 12 April 2016 at 2:27PM

I have requested a copy of all paper work.

This actual loan went down once...

In terms of the outcome I have read on some other forums that if financial difficulty or a ccj that interest may be frozen

Gaz83 · 12 April 2016 at 2:28PM

dal2008 wrote: »

I have requested a copy of all paper work.

This actual loan went down once...

In terms of the outcome I have read on some other forums that if financial difficulty or a ccj that interest may be frozen

Yes, it may be. It's not a guarantee. Have you asked them?

I mean the rate of the loan, not the loan itself.

ETA: So, if the actual loan amount was £30,000, does that mean that you've paid off £4,000 to the capital to leave it at £26,000?

dal2008 · 12 April 2016 at 2:47PM

Hi,

current rate is 9.678 %, initial rate was 10.4%

the outstanding balance is 26000 so I assume so

cheers

[Deleted User] · 12 April 2016 at 5:04PM

Picture loans don't exist anymore so unfortunately you can't make a complaint against them.

I presume this is a secured loan? If so, your choices aren't great.

You can overpay like crazy which would really bring down the years left to pay and save you a ton in interest.

You could speak to Stepchange etc but you will trash your credit rating and IDEM could just take you to court and force you to pay the loan from the sale of your house. They might accept reduced payments but that just prolongs the loan.

I think the best thing is to speak to a debt charity about your options.

It's easy in hindsight to call these companies crooks etc but what if they had turned you down for a loan? What would you have done then? I can just imagine the outcry if companies denied credit to financially incompetent adults.

dal2008 · 2 May 2016 at 6:06PM

sorry haven't had a chance to respond, am still investigating and seeking advice. overpaying sounds like the only resolution at the moment.

I wish I know what I know then with regards to debt management plans. Live and learn...

I never know there was so much support and help out there. national debt line and stepchange are a great help

poppasmurf_bewdley · 3 May 2016 at 7:31PM

Have you had the PPI plus its interest repaid to you?

If not, you should start now.

Picture Finance / IDEM Servicing

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