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Unregulated Picture Loan
XxDragonflyxX
Posts: 7 Forumite
in Loans
Hi, I am after some advice please. Firstly, I don't need any keyboard warriors getting all hyped up and judgemental. If you have nothing constructive to say move on to the next post! Secondly - yes I was naive and stupid enough to sign up to this loan 10 years ago & no there are no arrears or missed payments on the account.
Sorry to those that are still reading but I've read some downright rude posts today and cannot be dealing with this when I am genuinely looking for advice.
Right getting to the point, my Husband and I took an unregulated loan (over £25k. PPI issue resolved) in 2006. We are now looking to move however a Solicitor has said that the loan looks "dodgy" and worth looking into. My Husband has identified that Picture have ignored the valuations of our house and against their own lending policy of 125% of loan to value have lent us 161% . We have taken this up with IDEM who are responsible for Administering the loan but they claim that they are not responsible for this and FOS can't help with it being an Unregulated loan.
We went back to IDEM to challenge them on the basis they can't wash their hands of this yet still collect monies each month. They have since said (followed up in writing) that they appreciate our Complaint but as they were not involved in the sale cannot comment about the issue but have offered to freeze interest going forward which will reduce the loan by around 7 years. Whilst we are happy to accept this I have a few concerns as they can only do this on a year by year basis due to Computer functions and that they reserve the right to unfreeze interest whenever they see fit.
Given how easily IDEM caved in we feel that there is clearly a huge flaw with our initial loan and we are thinking about seeking advice from the CAB. If we challenge the loan legally this will end up costing us in legal fees- do you think we have a case?? We don't want to rock the boat too much and run the risk of them withdrawing their offer but at the same time this goes against Pictures own lending policies, the advert is still on You Tube.
I'm not trying to get out of paying but we were clearly sold a product that was not legally correct.
I also understand second charge secured loans come under revised mortgage rules which will be overseen by the FCA next year which may warrant some sort of review then.
I'd be grateful to hear "constructive" thoughts on this. Thanks
Sorry to those that are still reading but I've read some downright rude posts today and cannot be dealing with this when I am genuinely looking for advice.
Right getting to the point, my Husband and I took an unregulated loan (over £25k. PPI issue resolved) in 2006. We are now looking to move however a Solicitor has said that the loan looks "dodgy" and worth looking into. My Husband has identified that Picture have ignored the valuations of our house and against their own lending policy of 125% of loan to value have lent us 161% . We have taken this up with IDEM who are responsible for Administering the loan but they claim that they are not responsible for this and FOS can't help with it being an Unregulated loan.
We went back to IDEM to challenge them on the basis they can't wash their hands of this yet still collect monies each month. They have since said (followed up in writing) that they appreciate our Complaint but as they were not involved in the sale cannot comment about the issue but have offered to freeze interest going forward which will reduce the loan by around 7 years. Whilst we are happy to accept this I have a few concerns as they can only do this on a year by year basis due to Computer functions and that they reserve the right to unfreeze interest whenever they see fit.
Given how easily IDEM caved in we feel that there is clearly a huge flaw with our initial loan and we are thinking about seeking advice from the CAB. If we challenge the loan legally this will end up costing us in legal fees- do you think we have a case?? We don't want to rock the boat too much and run the risk of them withdrawing their offer but at the same time this goes against Pictures own lending policies, the advert is still on You Tube.
I'm not trying to get out of paying but we were clearly sold a product that was not legally correct.
I also understand second charge secured loans come under revised mortgage rules which will be overseen by the FCA next year which may warrant some sort of review then.
I'd be grateful to hear "constructive" thoughts on this. Thanks
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Comments
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Who carried out the valuation of the property? What figures are we talking about here?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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I'm not sure on what basis you say the loan was not 'legally correct'.
It appears they may have lent more generously than their criteria normally allows, but it's not a breach of law for them to make an exception.
The freezing of interest appears to be a massively generous offer. I assume it's a high interest rate if it's reducing the term by seven years?0 -
What does your solicitor suggest?£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Thanks for your replies. I've not got the paperwork to hand as I am not at home. From recollection the valuations were done by a Third part on the instruction of Picture. We purchased the house for £73k the year prior to the loan & the valuation was £104k based on new builds in the area & a 3 bed property a few streets away (ours is a 2 bed). No one paid a visit to our house.
Whilst it may not be a breach of the law we were not told than any special exceptions were being made made for us as I think this may have raised alarm bells for us. There was not enough value in the property for them to have lent us so much money. I can't recall the interest rate but I'm sure it's high.0 -
Hi, the property Solicitor is on holiday so is not aware of the new developments.
I am happy to seek advice from CAB but don't want to incur any fees if there is no actual wrongdoing as such but again why would IDEM offer this up? X0 -
For an easy life, I would imagine. IDEM appear to have bought a tranche of the Picture loans and are just running it in paydown mode.0
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Their easy life would have been to stand their ground & not review the loan as they supposedly bought the debts without liability. It's being paid regardless so for them to offer up a goodwill gesture is questionable in my opinion.0
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No, their easy life is for you to go away so they don't need to trawl through historic documents to review the sales process that they may or may not have.0
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Is that not my point?0
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I don't think so.
I thought your point is that they've done something illegal.
My point is they probably haven't but can't be bothered to argue it out with you. They've bought the portfolio at a discount and just want an easy life of getting most of the money in.0
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