PPI on vehicle finance

lapthorn · 7 November 2007 at 1:43PM

Good afternoon,

I believe that I was genuinely mis soled PPI for my hire purchase agreement although the hire purchase is now complete.

The hire purchase was from 01/03/2003 and ran for 35 months. The PPI was £36.67 per month. The person who was selling me the finance knew that I was self employed and said that PPI was compulsory. I even paid for the most expensive cover because of this.

During the hire purchase I did in fact have a period where I wasn't earning any income because I was out of a contract and when I phoned the financial institute they said that I was not covered and that all they could do was extend the loan.

I believe I am able to send a letter asking for this money back, can someone confirm this for me, if you need more information let me know.

Also 36.67 x 35 means that I am entitled to £1283.45. Is the 8% added to this amount.

James

lapthorn · 7 November 2007 at 4:24PM

Here is a copy of my letter to Ford Credit Europe:

James Lapthorn

xx xxx xxxx

xxxxxxxx

xxxxxxx

Wednesday, November 07, 2007

Ford Credit
FCE Bank Plc
Abbot House
Everand Close
St Albans
AL1 2RW

Dear Sir or Madam,

Re: Account number: xxxxxxxxxxxx

I purchased the above policy from you in 2003 but now believe that I was mis-sold this policy for the following reasons:

·[FONT=&quot] [/FONT]This is due to the fact that I was self employed when I took out the policy and I made this aware to your member of staff when the policy was sold.

·[FONT=&quot] [/FONT]This is due to the fact that I was not given the correct information when the policy was sold to me, as
[FONT=&quot]o[FONT=&quot] [/FONT][/FONT]your salesperson did not tell me that the policy was optional.
[FONT=&quot]o[FONT=&quot] [/FONT][/FONT]your salesperson stated / implied that taking out the policy was essential for me to get the associated credit.
[FONT=&quot]o[FONT=&quot] [/FONT][/FONT]your salesperson did not give me full information on what the policy would and would not cover

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.

I look forward to a full and prompt response to this letter and for the matter to be concluded with eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

Yours faithfully,

James Lapthorn

Does it look ok?

iolanthe07 · 7 November 2007 at 4:44PM

I may be wrong about this, but I have a feeling that back in 2003 lenders did have the right to insist on PPI, though that has certainly changed now. Perhaps someone can come along soon with a definitive answer.

petermb_2 · 8 November 2007 at 11:36AM

Lenders had the right to insist but most could never get their agreements right when doing so. Therefore if you fail to get any assistance from the lender there will be legal means to take them on.

Dont let that put you off. There are now ways that you can take on the lender through the legal process at no cost to you, win or lose.

PPI on vehicle finance

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