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Picture Financial interest rate increased to double base rate on secured loan
Not sure if other customers of Picture Financial had a letter from them today advising their customers they have increased their rate to almost double the BoE base rate to 10.34 % !! therefore increasing our monthly payments by almost £40.- without the BoE announcing a further rise
They explain this with the unstable financial market and basically blame this for this jump
It sounds as if all their customers are affected but not sure, as we had a missed payment last month and they may have done it to penalize us
Is there anything one can do about this extortion ?
I am tempted to write back to them asking for a Breakdown of their borrowing costs and advise them their rise is unacceptable making it double the BoE base rate
Re: Picture Financial interest rate increased to double base rate on secured loan
Originally Posted by The Phantom
I am tempted to write back to them asking for a Breakdown of their borrowing costs and advise them their rise is unacceptable making it double the BoE base rate
Has anybody any ideas ?
If it is a secured loan you could almost certainly shop around for a better deal. You could also try complaining to the fos - at least it would cost them £400.
Re: Picture Financial interest rate increased to double base rate on secured loan
Yes, it is secured, but we can't at the moment look for a new better deal, because of our credit history. OH is not yet discharged from BR (will be discharged early October). But due to that it may be difficult to find a new lender
But I will definitely write to Picture and complain as this rise is totally disproportionate. I think I can only take the matter to fos once I have exhausted Picture's complaint system ?
Re: Picture Financial interest rate increased to double base rate on secured loan
Yes, I think livelylad uses the hooded guy occasionally as well, changed it again for some variety
How's that ? Any better ?
OK, will write to them complaining and see what they say (probably tough)
and see where we go
I will keep this thread going, to see if other customers of this bunch also got this letter and if we can organise for more people to write in and complain to them.
10.34% and they happily increased the rate with the BoE as well. This is on top of all those increases. They must be out of their mind
Re: Picture Financial interest rate increased to double base rate on secured loan
I think you are quite right - it will become an issue
Had a message earlier from someone else to tell me Cahoot increased their rate to 22.5 % on a loan also with the explanation of the unstable state of the market..., surely this is extortion with the base rate being 5.75 %
How can they justify an interest rate almost 17% above base rate ?
Re: Picture Financial interest rate increased to double base rate on secured loan
We had the same letter too yesterday so I don't think missing a payment was the cause.
I can understand them raising the rate in line with the Bank of England rate rises but this seems totally unacceptable. It makes me wonder whether they are raising the interest rates because they are getting a lot of complaints about mis-sold PPI.
I will be interested to hear how they respond to your letter.
Re: Picture Financial interest rate increased to double base rate on secured loan
Good point Gizmo, what does it say ?
It is a variable rate so much I do know, but have I read the small print ?
Of course I haven't
At the bottom of the letter it says as a kind of PS : Picture loans have a variable interest rate, details of which can be found in clause 2.2 of your agreement. (At least I now know where to look in the tiny small print)
I know there was an issue with their PPI, we also took it out when we took out the loan.
Apparently if you don't make a claim you get like a no claims refund after 3,4 and 5 years.
Not sure if they do actually pay out or whether it is just a ploy, we will find out in January when 3 years are up I guess
Would be nice if it was true, we would get £3000.- if we were to believe them.
My OH now doesn't want me to complain as he thinks we won't get the money if we complain and annoy them, but hey, they may still find another 20 clauses as to why not to pay out anyway (probably also in their small print), so let's go for it
I went there but it appears you can only listen to it, not actually read the information. Everytime I try to listen, I am told I haven't got the plug-ins or whatever
You couldn't just give a quick summary by any chance ?
Re: Picture Financial interest rate increased to double base rate on secured loan
OK, Picture says "Financial Markets are in an unusually unstable state"
However, The Phantom says you greedy cockroaches have already raised interest rates happily in line with BoE this year and now to jump it an extra few percentage points on top of that again to make their rate almost double the BoE is not on.
They however invite you to phone them if this causes any difficulties (why would it cause anybody any difficulties ? We just do a nightshift in the loft printing some more money..hey presto. Problem..What problem ??) , so when you do phone them they will offer you to stretch the loan again, (no doubt) to bring payments down but at the same time tying you in even longer
So if you pay their extortionate rate they win, and if you can't and they tie you in even longer they also win. A complete outrage
Re: Picture Financial interest rate increased to double base rate on secured loan
I don't think you will have any problems getting the money back in respect of the no claims PPI refund unless missed payments become an issue.
Just out of interest, do you realise that their PPI is only for a 5 year term so if you have a longer term loan, you won't be covered after the first 5 years? When we took out the PPI, Picture gave us the impression that the PPI ran for the full term of the loan so we have now taken this up with the FO now.
For a 5 year plan, the PPI is b****y expensive especially considering you have paid this premium up front and are paying interest throughout the whole term of the loan. It amounts to daylight robbery in my opinion.
Re: Picture Financial interest rate increased to double base rate on secured loan
Yes, I knew it was only for five years, but only because I asked at the time.
It appeared all a bit strange that you would get all this money back over five years so we asked about it.
(As far as I can remember it didn't actually say that, we had to ask.)
You are correct to say the PPI is very expensive to say the least but we were given the impression at the time that the PPI was compulsory if we wanted the loan.
Once their cover has lapsed in two years we will incorporate it into our Payment Protection Insurance for the mortgage which we have going.
Re: Picture Financial interest rate increased to double base rate on secured loan
You are correct to say the PPI is very expensive to say the least but we were given the impression at the time that the PPI was compulsory if we wanted the loan
In which case it is my understanding that the PPI was mis sold. HAve a good read of the PPI forums.
Picture Financial interest rate increased to double base rate on secured loan
of their borrowing costs and advise them their rise is unacceptable making it double the BoE base rate
Reply With Quote
Originally Posted by The Phantom
. BTW you have stolen a moderator's avatar. I preferred the little dog
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