Personal Loan Insurance

ukc331

Hi,
Wonder if anyone can advise me?
My 20 year old daughter took out an unsecured personal loan with Abby in Feb 08. I have since discovered that she was made to take out loan payment protection, (she was told the loan would not be given without it) and despite following the advice given on this site and sending the template letters they are still maintaining that it was legal.
What action should she now take? The cost of the payment protection was an extra £1200 on top of the original amount. For this she is paying approx £45 per month!!
Any advice would be greatly appreciated.

standupguy

Mis-selling of PPI is basically a complaint that you can take to the Financial Ombudsman service if you feel your lender does not resolve your complaint satisfactorily.

At what stage are you in the complaints process?

Is what your lender has sent you a first response to your complaint or is it noted as a final response?

This may help as it outlines the stages of a complaint: -

All banks and Finance Companies are regulated by the FSA and must adhere to the laid down procedures for dealing with complaints.

They can be fined for not treating customers fairly and if they cannot resolve your complaint within the agreed time constraints then you can take your complaint to the Financial Ombudsman service (FOS) that will make a final decision on your complaint.

The Banks and Finance companies fund the FOS and each complaint that is referred there costs the Banks or Finance Companies up to £400 for the Financial Ombudsman to review the compliant and make a ruling. There is no cost to you the customer.

As you will see then, it is in the Financial Institutions best interests to try and settle the complaint before it is referred to FOS.

You can make your complaint verbally on the telephone or in writing.
Whichever way you choose, tell them that this is a formal complaint that you are prepared to take to the Financial Ombudsman service if they cannot satisfactorily resolve the complaint. (This informs them that it is a complaint that should be dealt with under their complaints handling procedure – and not somebody just having a moan)

If they can resolve your complaint to your satisfaction within 24 hours then that is an end to the matter.

If not, they have 5 working days to acknowledge your complaint in writing.

They then have 4 weeks to give you an answer - technically called a “first response”

If they cannot resolve the complaint in 4 weeks then they are allowed to send you a holding letter – they then have another 4 weeks to resolve the issue.

So, no later than 8 weeks after you made the complaint they have to give you their “final response” or “business decision letter” to your complaint.
If you do not agree with the outcome then you have the right to forward the complaint to the FOS.

Bear in mind their “first response” letter may be a fob off to see if you will go away - it is their “final response” or “business decision” letter, which is their last word on the complaint.


All of the above is under the FSA’s regulations regarding firms “treating customers fairly” (TCF)

TCF is not optional and firms can be and are regularly fined for not treating their customers fairly.