mis sold picture loan

[johntina]

We took out a picture loan in january 2005 for £25,000 for debt consolidation, six months later we took out another picture loan for £32,000 incorporating the £25,000 and again paying off unsecured debt with the rest. In janurary 2006 we again consolidated with a £50,000 loan, £62,000 with ppi which we got back a few years ago. This is an unregulated second charge on top of our Nram mortgage of £125,000. Although yes guilty we took the loan, the company lent us to the value of 150% of the house value. Nobody ever came out to value the house, also they could see we were having trouble managing money by consolidating 3 times in 12 months. On the phone calls they only ever compared what we would be saving compared to what we were paying now. They were sent a copy of our last wage slip that they asked for which showed a combined basic income of about £30,000, although mine contained overtime. Basically I feel we were set up to fail as the loan was not affordable from the start without high levels of overtime. The interest rate although only ever increased and never reduced when interest rates came down. Picture went bust and our loan changed to Webb Resolutions. 4 years ago my wife was diagnosed with cancer and we fell into arrears. last year the loan was taken over again by Idem servicing and our current balance is £64,000, £2000 more than the orginal loan. Little equity in the house has prevented them going for repossession at the moment but we don't know how long that will last. Although my wife is now hopfully ok she has severe depression and some other health issues resulting in working about half the hours she used to Do i have a case for mis selling and if so where do I go with it. Any help and advise would be greatfully recieved.

[wales01man]

Re: mis sold picture loan

who valued the house?

[Snoopy1948]

Re: mis sold picture loan

Were you told at any stage that the increased loans ( presumably over longer terms ) were subject to longer terms and hence substantially increased interest payments?

Did you ever complete and income and expenditure statement that showed the company they could responsibly lend you with your ability to repay from disposable income?

Were you aware on signing for the final loan that you were pushing borrowing up to 150% of loan to value? If so, did you show your concern?

What has previously caused the rapid turn over of three consolidation loans?

[johntina]

Re: mis sold picture loan

Picture valued the house, we asked if we had to be in but was told it's a drive by valuation.

[johntina]

Re: mis sold picture loan

All the loans were for 300 months, we did not fill in an income and expenditure form, they just asked for the last wage slip from both of us. We were not aware that we were pushing borrowing up to 150% at the time. It didn't even cross our mind. As for the rapid turnover of these loans we were just very bad at managing our money and were easily led when told each time this will save you x amount per month and not thinking of the long term. It was irresponsible on our part but also irresponsible on the part of the lender.

[Snoopy1948]

Re: mis sold picture loan

Hi johntina!

Obviously, ten or eleven years ago, lending criteria were softer and irresponsible lending still prevailed, compared to such lending today. You were probably led through a maze of application, based on the urgency of your need at the time and, more importantly, the high commissions being earned by the 'advisors' at the time.

Whether any of the lending responsibility leads to being described as 'mis-selling' is another issue. If you can positively define any stage of the lending where you were deliberately misinformed, that would be a good start. It does not help that the original finance company has gone out of business. Certainly it does not appear that affordability of any of the lending had been closely reviewed ( as you say, no income/expenditure analysis ) but of course you agreed to all the terms and signed for accordingly.

As your personal situation is showing concern ( your wife's health and cashflow situation ) I think you probably need to spend more time on securing your situation rather than pushing for some financial claim against the current financial house ( who of course did not do the original selling although I wonder if it's just a case of 're-badging' a failed company? I would seek an interview with a money advisor at your local Citizens Advice Bureau as to where to go from here. That may even include insolvency as an option, which is not always first choice, but you do need to be aware of your options. Bear in mind you do not have to take that advice but the more you talk through a situation, the clearer resolution becomes.

[Buck]

Re: mis sold picture loan

I know I may live in Disney land, but the buck must stop somewhere. Borrowers that went to PI were obviously either there because others would not lend to them, or they were so desperate they would sign to anything as all PI did was ram down the borrowers throats the wonderful cash flow advantages of the transaction.

Since PI's collapse the debt has been passed from pillar to post, the company borrowers are told currently hold the debt are a mystery, communication is purposely kept to the minimum and they are very rude to deal with, which bearing in mind we are the customers is appalling, but this is designed to discourage.

I believe that if you buy a loan book some duty of care passes with that responsibility, I would love to know exactly how many borrowers they still have trapped on book. By the nature that they are no longer active lenders it must be a diminishing portfolio, thus I think that those remaining should start to kick up a storm.

Surely if the majority have a voice shouting mis selling someone somewhere has to take notice. Base rate just reduced by 0.25% has anyone out there had a PI letter regarding any adjustment to a payment. I am currently paying more now with an historic Base Rate over the last 8 years of 0.5% than I was at inception when base was around 5%. I have now paid over 150% of the original borrowing yet still owe 85%. Like other postings the PI loan took me into negative equity, but equally I also feel that my first charge mortgage holder did not give any care when they agreed to the second charge.

Come on guys, how many of us poor souls are still out there??

[Tafskimax]

Re: mis sold picture loan

Contact the FSCS if you feel you was missold the PPI with the original Picture Financial Loan.
Their number is 0800 678 1100 They will take your details and look into your missold PPI on your behalf as Picture were found to have bullying tactics in telling people they must take their PPI or the loan may be rejected or not explaining the exclusion in their PPI agreements..
The Picture Financial Loans keep on getting moved about to different companies and changing the original Picture Account number.
Went to Webb Resolutions ,
Then Idem Servicing which is part of Paragon group ,
Now Moorgate which is part of Paragon group .

[charitynjw]

Re: mis sold picture loan

Idem Capital (part of Paragon Group) is a debt purchaser. (Owner)
Idem Servicing & Moorgate service/administer debts/accounts.
http://www.paragon-group.co.uk/about-us/idem-capital

[Tafskimax]

Re: mis sold picture loan

Idem Capital (part of Paragon Group) is a debt purchaser. (Owner)
Idem Servicing & Moorgate service/administer debts/accounts.
http://www.paragon-group.co.uk/about-us/idem-capital

Thanks Charity ,
I am aware who the companies are and have been onto their website recently.
I still have the old Picture Financial Services loan ongoing at present,
although I cannot seem to get onto my Loan account now with them using the details they have provided,
Think it is because they keep changing between the companies internally within the group and changing the Account numbers.

Hopefully my own PPI claim will be successful and a large portion of what is left on the old Picture Financial Services loan will be paid off and end much sooner.
uersmiley: