Reclaim of PPI on loan - SUCCESS & Letter Template

DontDoDebtKids · 5 February 2007 at 4:02PM

Hi all,

I can't find an article by Martin on PPI so I thought I'd ask here, at least to start.

I took out an Egg loan, which I have recently settled, back in May 2004. It was implied by the telephone person that I needed PPI otherwise it would be refused, at least that's what it felt like at the time, so I opted for PPI.

I finally decided to cancel the PPI, as I didn't feel I really needed it, in November 2004, and so my payments came down.

Do I have any sort of case for claiming I was mis-sold PPI and, if so, how do you lot reckon I should go about trying to get any money back from Egg?

Having been successful in getting some bank charges back from First Direct recently, I feel I should have a go with this if I have a case.

Cheers,

DDDK

medman · 5 February 2007 at 4:16PM

Greetings DDDK

The situation is still a bit fluid at the moment. The Financial services Authority have just slapped a fine on GE capital (£610,000) for mis-selling such policies, and there are more big names to come. There is an investigation going on by the Office of Fair Trading into the automatic inclusion of PPI onto loan agreements. There will be more news in the coming weeks.

This weekend there were several stories about mis-selling of PPI and it is considered likely that there will be ground for compensation along the lines of the Endowment scandal.

For your particular case I would be inclined to write to them explaining that you were mis-sold the policy and given the impression that it was a requirement. If the policy didn't cover your circumstances then ask for all your premiums back. If that is not the case I would still expect compensation for the premiums that were taken on a mis-sold policy.

It will become a bit like bank charges I suspect, the banks will say no and some people will give up. Others won't and the banks will settle just before the court case to avoid creating case law that could open the flood gates.

Hope this helps

MM

DontDoDebtKids · 5 February 2007 at 5:28PM

Tricky - so basically I can either have a go and write them a letter now or wait a bit to see how it pans out, like with bank charges, and then write my letter once there is a bit more certainty to the situation.

What about this for an attempt:

Dear Sirs,

Re: Loan Agreement XXXXXX of 10 May 2004

Following the settlement of my loan recently, I would like to request a refund of the premiums and any corresponding interest paid for the payment protection insurance (PPI) I took out with my loan as I have reason to believe I was mis-sold this insurance policy.

When I took out the loan, during the telephone conversation I had with your loan sales representative, I was very much given the impression that taking out PPI with my loan was required otherwise my loan would be refused.

Accordingly, I agreed to PPI even though I didn't really think I needed it at the time.

After a few months, I decided to cancel the PPI on the loan and did so on 9 November 2004.

I would appreciate a breakdown of the cost of the PPI paid between 10 May 2004 and 9 November 2004, including any interest paid theron. I also request a refund of this amount to my bank account number XXXXXX, sort code XX-XX-XX.

I would appreciate a response from yourselves within the next 14 days.

Yours faithfully,

Mr. DDDK

DontDoDebtKids · 5 February 2007 at 5:29PM

Opinions? Suggestions? Any mistakes?

DDDK

medman · 5 February 2007 at 5:56PM

Hi

Good luck and let us know how it goes.

Best wishes

MM

I guess my amendments weren't needed

DontDoDebtKids · 6 February 2007 at 1:04PM

Righto, letter sent (using Egg freepost envelope, thanks Egg!)

Let's see what they say...

Keep watching this space! I'll post back if and when they reply.

Oh, and to remind myself in the future, the process is:

1) Send initial complaint - done
2) Send follow up complaint - awaiting response from Egg
3) Go to Financial Ombudsman - await completion of (2)

DontDoDebtKids · 15 February 2007 at 4:07PM

I just received £261.80 directly into my bank account from Egg today. No explanation. It just arrived.

Wow.

That was easy.

I wonder if they'll send me a letter?

DDDK

Poppy39_2 · 15 February 2007 at 5:06PM

Fantastic!!

Well done, just shows how much money these companies have been making all these years that they shouldn't have!

P x

medman · 15 February 2007 at 8:53PM

DDDK

Couldn't be more delighted. We need to spread the word now

MM

DontDoDebtKids · 16 February 2007 at 2:40PM

Well I got a letter through from Egg explaining that they'd looked into it, figured out how much the PPI cost and refunded it in full with interest costs based on when I took out the loan and when I settled the loan.

Fantastic.

Not a word trying to defend charging it. They just accepted that it had been mis-sold, apologised and refunded it.

So, to everyone out there who believes they were mis-sold PPI for any reason, try writing a letter.

My letter didn't even cost me postage as I used a spare Egg freepost envelope!!!

DDDK

Jumps · 16 February 2007 at 2:45PM

Well done. I am just starting this with LloydsTSB. I had a loan and it is now settled but I was told at the time that I had to take PPI otherwise they would not offer me the loan. Hopefully I will have the same success.

Reclaim of PPI on loan - SUCCESS & Letter Template

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