Do I have a legal obligation to make paymens on a loan when the company has gone into liquidation?

[beaniebabe]

I am requiring some help and advice in respect of this situation. I have a secured loan with picture financial. A couple of months after taking out the loan I questioned the PPI as I felt it had been misold. The company refused to help. As a result of this I contacted the FOS as the PPI on the loan was misold. In early 2008 the FOS transfered the file to FSCS as Picture went into liquidation.

I like many others have been waiting for the company to be declared in default.

When the company ceased trading a "rescue" company came in and are now dealing with all repayments.

As far as I can see my contract was with Picture. I would welcome any advice on where I would stand legally if I refused to make my monthly repayment to them.

If I refused to pay what could the company do about it? also would I be in my rights to withdraw payment until the company dispute has been resolved?

[palomino]

It all depends on the nature of this 'rescue' company.

 

Contracts can be bought and sold, together with the benefits and obligations they encompass. You need to find out the details - the capacity in which this company is acting.

 

In all likelihood you will need to continue making your normal repayments, and morally you must do this.

The question is to whom should the payments be made? I would be putting the appropriate cash aside each month until this clarified. You can then make payments as required.

[WelshMam2009]

To be honest, I don't think it's that much different from when a creditor sells debts to debt collection agencies.

 

You should have received some form of Notice of Assignment though.

[beaniebabe]

It all depends on the nature of this 'rescue' company.

 

Contracts can be bought and sold, together with the benefits and obligations they encompass. You need to find out the details - the capacity in which this company is acting.

 

In all likelihood you will need to continue making your normal repayments, and morally you must do this.

The question is to whom should the payments be made? I would be putting the appropriate cash aside each month until this clarified. You can then make payments as required.

 

Thanks for your advice. Where would I be able to find out this information about the company. I can give the name of the "rescue" company but am unsure whether I am allowed to do this on the forum.:-|

I have no problem making the repayment, however things are a bit tight at the moment as my husbands hours have reduced by half, so I guess it was worth finding out what I can just in case our situation deteriorates.

[beaniebabe]

To be honest, I don't think it's that much different from when a creditor sells debts to debt collection agencies.

 

You should have received some form of Notice of Assignment though.

 

Thanks for your advice

 

We received a letter from the rescue company stating Picture Financial had gone into liquidation. Is this what you mean. However when we contact the company they still answer as Picture and all correspondence is on Picture headed paper. This leaves me feeling a bit confused as to what is going off.

[WelshMam2009]

Thanks for your advice

 

We received a letter from the rescue company stating Picture Financial had gone into liquidation. Is this what you mean. However when we contact the company they still answer as Picture and all correspondence is on Picture headed paper. This leaves me feeling a bit confused as to what is going off.

 

There might not be anything to stop the rescue company trading under the Picture name, particularly if it is an established brand.

 

Found this....

Picture is a brand licensed to Target Loan Servicing Limited. Target Loan Servicing Limited is the service provider for Picture Home Loans (No1) Limited

However, trying to track down the OFT licence, I found that there is also a

Picture Home Loans (No 2) and Picture Home Loans (No3)!!

 

Go here and do a CCA search (look on right hand side) for the company who say they have taken over.

 

http://www2.crw.gov.uk/pr/default.aspx

[smouk]

If you had an acknowledgment for mis-selling PPI then you would have been a creditor and should have been contacted by the administrator. However, if no acknowledgment was made then you need to establish to what extent the new firm is the old firm. If they are collecting on contracts then they are are also liable on contracts but I really would recommend talking to a good insolvency solicitor. The first chat should be free and will give you a clearer idea about how much of a fight this could be.