in desperate need of good and correct advice

[MelanieGiles]

I cannot see you having any joy in challenging the fairness of the Picture loan, but if the FSA are involved then we will wait and see. What is your complaint based upon, as presumably you signed the paperwork willingly?

If you propose an IVA you will be required to raise equity during the final year, subject to certain conditions.

I suggest that you now take more specific advice from an insolvency practitioner about your options, as this forum cannot give in depth definitive advice about individual situations.

[Storm]

From the posts it isn't clear what the specific complaint is - you will need to demonstrate that an element of the process wasn't complied with such as advance contract copies / consideration periods etc.

Knowing the Picture contracts reasonably well they do comply with the Consumer Credit Act and if executed correctly are legally binding.

The amount of the repayment that is apportioned to capital / interest is standard across the industry (uses one of two methods).

So unless you have a specific complaint you are putting off the conversation with a professional who can advise you accordingly.

[Storm]

Reading the post again - one thing that may further limit your redress / complaint is that 2 years ago the agreement would have been an un-regulated credit agreement.

[chelle]

hi
umm i see what you mean - but i did my loan through a company called funding network who i think phoned me up to offer there services out the blue. the underwritter is picture but thye had no part in the interview and advice part. does that make any difference?
Ive complained about the fact i was not told i could not move home due to the 125% loan and also that i was not offered any other options and it wasnt discussed that i my best option at the time would have been to speak to the unsecured creditors instead and possible look into a IVA then.
Now ive secured the debt i cant do anything about it! basically it wasnt the correct advice at all!

[Storm]

The was no requirement for a secured loan broker or the lender to offer you 'best advice' in terms of products etc.

The key factor at the time of the application will have been your ability to pay.

Being an unregulated agreement (at the time) there was no requirement to give you a consideration period / advance copies etc.

So unfortuately you are responsible for reading the agreement and understanding the implications of securing debts on your home and or seeking independent legal advice.

To get the outcome you are looking for you would need to demonstrate something the broker did was missleading or inacurate or for example undue duress was placed on you to sign the loan documents from the broker or lender.

[Adam Davies]

Hi Storm
While your on the forum a question
Can,and do,companies that offer car finance[not HP] register an interest in the car with HPI even though the vehicle is not legally secured with the loan ?

[Storm]

Hi Andy

They do it but shouldn't. Legally they have no interest in the vehicle.

When challenged they use the excuse of Fraud Protection.

With a bit of presure they will remove the HPI interest...... but can drag there heals a bit.

[Adam Davies]

Thanks
There's an open invitation for you attend my frugal friends meeting in Manchester on the 25th
Regards

[chelle]

so whats the verdict - does everyone think my best option is bankruptcy?

what do you think about me shortening the term of the picture loan to ten years - will they do this? Do you think it will increase the payments too much?

I just want to get out of debt quicker than 25 years!

[Storm]

I can't advise on the best route for you Chelle.... best left to the insolvency experts. Best advise I can offer is speak to / meet an expert, be open with them and consider carefully your options.

Shortening the term could be an option if Picture are happy to do it but I am not sure it will have an effect on your immediate situation.

Remember whilst your current loan period is 25 years you have the option to settle this early if your situation changes in future years.

[johnt]

so whats the verdict - does everyone think my best option is bankruptcy?

what do you think about me shortening the term of the picture loan to ten years - will they do this? Do you think it will increase the payments too much?

I just want to get out of debt quicker than 25 years!

I honestly think given your circumstances that bankruptcy would be the best option. I have some experience with this, so I guess it's easier for me to consider, ultimately the decision is yours.

I know it's a lot too get your head round, but emotionally you'll feel a lot better about this once your free of the debt. It won't be easy, but I suspect a lot better than struggling on as you are.

I doubt picture will change the conditions of your loan, and you need to get on with your life, and not have this desperate mill stone hanging round your neck.

I imagine there probably was a time prior to you taking out the loan with Picture when either tighter spending or a DMP may have been the best option for your unsecured debts. I think unfortunately your past this stage now, especially considering the mortgage you have, which will only get more difficult to service.

Sell up, find a decent rented property that suits you, and go for it. It will mean a large shift in life style, but it will get easier after a relatively short period of time.

All the best whatever you decide do, and get that proffesional advice ASAP.

[chelle]

i would love to settle early but i feel like im paying for nothign - as ive paid 15k and yet only decreased my picture loan by 950! and then if i paid it off early i get charged 6 months interest! cheek!

[anfieldbabe]

just a question for those who have gone bankrupt how do you go about it and what happens

[MelanieGiles]

You make an application to your local County Court using forms which can be downloaded from the Insolvency Service's website. There is a cost of £485 per applicant, and you will need to attend Court on the day of the hearing.

[chelle]

hi again

ok i have had hopefully the best idea yet - i have worked out a plan over the next 12 months of paying every penny i earn (minus living costs) back to the unsecured loans etc.
i am selling my VW touran - should get in region of 8500 for it - this will clear 1 loan.
I am a model and have a job coming up in 2 weeks which will pay me 1600 - im using this to repay the small loan of 1000.
My hubby works for emap and has just been informed all his shares have to be sold due to take over by bauer- should be £3500-£5000 - again going to use this to pay off another large lump from the 2nd loan and use about 3k to get a smaller run around car.
This leaves 2 credit cards and half a loan! So im using all my moeny spare to pay off these monthly - the one credit card is on 12 mths interest free at present and so shoiuld be cleared before interest is added on. My mum is doing my shopping for me and if she can do that for another 12 months then i have £400 a month i can wak off credit cards.

By the end of feb 09 - i should have cleared prety much everything unsecured!

Then i have another 1.5 years to until my mortgage rate finishes - so im going to hopefully retrain (i used to work in finance - yes beleive it or not i did!) in that time and get a job for some decent money, my youngest daughter will also be in school so i could and will go back to work full time.

another idea i had was to work in dubai for 5 years or so and earn some tax free cash? use most of it to pay off this picture loan and return home!

What does everyone think to my plan! means no spending for 12 months but i got to rein myself in sometime and this seems the best option.

also im intrigued on what you lot think of the current withdrawal of the 125% mortgage - and the recent withdrawal on taking on new business by picture loans - whats happening here? Could my original picture complaint be seriously looked at now? Are picture going down and if they do wheres that leave me with a debt to them?

cheers

Michelle