PPI Reclaiming Discussion part 4

amersall

dba wrote: »

Hi Guys
Can someone explain the following offer from Lloyds I recieved the other day. It related to my credit card ppi, which still has an outstanding balance of £1100. I took the card out in 2008 and have never cleared the full balance outright.

"If the consumer agrees to cancellation of the PPI the financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year; and
c) send the customer a statement showing the resulting balance on the account (with details of how it was calculated)."

i thought irrespective of whether i have been in credit they would need to work out 8% interest on the ppi premium from the start of the policy

is that not correct?

This is correct for credit cards,you only get the 8% on a credit balance.

di3004

Red_peppers wrote: »

Hi everyone,

I made a complaint to IF on 26-05-2011.

Today I have received a not upheld letter.

The letter says

'Dear mr........

Blah blah

As part of my review, I have considered whether you were eligible for the policy, whether the policy was suitable for you and whether we provided appropriate information to you in relation to your PPI policy when you took it out. I have also taken into account each of the concerns you raised with us in your complaint. Having completed all of these steps, I also looked at your complaint as a whole to ensure that we acted fairly towards you in relation to the sale of your PPI policy, taking into account any other relevant circumstances or information that may be available.

As a result of this review, I am satisfied that there were no issues with the sale of the PPI attached to your personal loan.'

The letter goes on to say if they do not hear from my husband they will close the complaint and consider it resolved.

Fair enough, they have done a thorough investigation. So why did they fail to see that as a self employed business owner he would be paid when he was sick or had an accident.

Any help?

Helen xxx

Hi Helen

So sorry to hear this and considering you complaint in May they made you wait all this time for a rejection!

I would then write back to them and question them on the self employment side of it and tell them you are not happy that they overlooked this where your hubby would have already been protected where-as you cannot see the point of paying out for this due to already being protected.

Ask them for any concrete evidence of the sale of the policy as well and anything else you can think of.;)
As it seems they are giving you the opportunity to write back with further information. xx

Red_peppers

di3004 wrote: »

Hi Helen

So sorry to hear this and considering you complaint in May they made you wait all this time for a rejection!

I would then write back to them and question them on the self employment side of it and tell them you are not happy that they overlooked this where your hubby would have already been protected where-as you cannot see the point of paying out for this due to already being protected.

Ask them for any concrete evidence of the sale of the policy as well and anything else you can think of.;)
As it seems they are giving you the opportunity to write back with further information. xx

Thanks Di,

We have waited 15 weeks and 6 days!!!

I will send them a letter asking why they have not taken it into account

Cheers my dears

di3004

Red_peppers wrote: »

Thanks Di,

We have waited 15 weeks and 6 days!!!

I will send them a letter asking why they have not taken it into account

Cheers my dears

Your welcome honey.:D

That is so annoying, giving the fact the length of time!

Stay strong and ask them to reconsider and ask them to provide written concrete evidence of what they believed was a fair sale.;)

dba_2

amersall wrote: »

This is correct for credit cards,you only get the 8% on a credit balance.

But surely you could argue that should I have invested the money I spent on ppi premiums in an ISA/ other high interest bank account then I would have interest accumulated...?

Red_peppers

di3004 wrote: »

Your welcome honey.:D

That is so annoying, giving the fact the length of time!

Stay strong and ask them to reconsider and ask them to provide written concrete evidence of what they believed was a fair sale.;)

How about this:

Thank you for your letter dated 13th September 2011.

I am disappointed that you have chosen not to uphold my complaint about my Payment Protection Insurance (PPI) policy.

I am particularly interested in your findings as to whether the policy was suitable for me. I am a self employed business owner, as such I would continue to pay myself regardless of how long I was off work. I believe I had no reason to be paying for this insurance due to already being protected.

I would like you to reconsider my complaint and provide me with, within 14 days,written concrete evidence of what you believe was a fair sale.

I will refer my complaint to the FOS after 14 days.

Love from Red peppers


How does this look?
Any edits and amendments will be appreciated.


Helen xx

smitchy73

dba wrote: »

But surely you could argue that should I have invested the money I spent on ppi premiums in an ISA/ other high interest bank account then I would have interest accumulated...?

The point is they reconstruct your card balances from when ppi was first added to it, until when it was paid off or now, depending on whether you still have a balance.
The first time ppi was added to your account, this will be taken off the balance that was showing at the time, along with what the interest charge on the ppi amount, then for the next payment/charge they do the same, they also keep a running balance of the ppi refund to yourself from this. This keeps going until the last payment or present day. As they reconstruct your account, if you end up with a credit balance, you will get 8% simple interest on that period.
If your card is older and had a high balance you will get a nice return. This is how like one of our regulars ended up with a refund of over £33k just the other day:D
The FSA handbook for the banks guidance is to put you into a position you would've been in if you hadn't had ppi in place throughout your card history.

Hope this helps:D

dilus

Red_peppers wrote: »

How about this:

Thank you for your letter dated 13th September 2011.

I am disappointed that you have chosen not to uphold my complaint about my Payment Protection Insurance (PPI) policy.

I am particularly interested in your findings as to whether the policy was suitable for me. I am a self employed business owner, as such I would continue to pay myself regardless of how long I was off work. I believe I had no reason to be paying for this insurance due to already being protected.

I would like you to reconsider my complaint and provide me with, within 14 days,written concrete evidence of what you believe was a fair sale.

I will refer my complaint to the FOS after 14 days.

Love from Red peppers


How does this look?
Any edits and amendments will be appreciated.


Helen xx

Sounds good to me and if you sign "Love from Red Peppers" they will probably Google you and lead themselves to your posts here and cave in completely knowing your not going to give in, good tactic
Best of luck Helen

cappo

irnbru74 wrote: »

Hi,
Can anyone tell me if this email looks okay or have I written a lot of rubbish?


Dear Sir or Madam,

I am writing to redress your response and to add further reasons to complaint.

After reading system notes, I can find no evidence that will convince me otherwise that I was missold PPI.

I am still of the belief that your advisor led me to believe that by purchasing PPI, that it would help secure loan and that is why I chose cheapest option. (if you read on you will find out more on why I believe I was missold this policy)

As there are no transcripts/recordings of our phone call and there are only system notes available, your firm has no actual way of disputing my recollection of events, as you have no way in knowing which way this information regarding securing loan /and purchasing PPI was communicated to me.

FSA 3.3.9.G
In determining a particular complaint, the firm should (unless there are reasons not to because of quality and plausibility of the respective evidence) give more weight to any specific evidence of what happened during the sale (including relevant documentation and oral testimony) than general evidence of selling practices at the time such as training instructions or sales scripts or relevant audit or compliance reports on these practices.


In your letter you have referred to the fact that I have signed both boxes to agree to take out PPI and as a result confirmed that I opted to purchase PPI.

FSA 3.35G The firm should not reject a complainants account of events solely on the basis that the complainant signed documentation.

Your response contradicts guidance given by the FSA as you are basing decisions on this.


As part of my original complaint I did not question that I had agreed to take policy out, I am questioning the way in which the policy was sold to me.
furthermore, I am still of the opinion I was pressurised, into taking it out to secure loan.


I wish to raise new points of complaint not raised in initial letter -

1 Your advisor went through a complete vet as you call it - I was asked a number of questions with regard to employment, sickness benefit, life insurance.
The outcome of this was your advisor was well aware of my place of employment ie a public sector worker in the NHS and that I had full sickness benefit (6 months full/6 months half pay) and on top of this I had full life insurance with critical illness cover - all of the above far outweighing the benefits of your PPI policy which you recommended to me - According to the FOS you are therefore under a duty to take all reasonable steps to ensure recommendation is suitable. I believe your firm did not demonstrate due care to my needs when recommending this policy as it is patently obvious that I had no need for it.
Your demands and needs statement contradicts the information that was given to your advisor,
please see your demands and needs statement. -
What cover do you have currently in place to protect yourself and this agreement - NONE.

The insurance Conduct of Business rules ICOB43, ICOB44, ICOB53 and in particular ICOB4.31R
requires that an insurance intermediary must take reasonable steps to ensure that if any personal recommendation to a customer to buy or sell a non investment insurance contract, the personal recommendation is suitable for the customers demands and needs at the time the personal recommendation is made.

2 The PPI was a single premium insurance, I feel that I wasn't given enough information to make an informed decision to the true cost of this PPI, the fact that the interest on thePPI would be payable for the whole term of the loan. ie that this insurance was put on at the start of the loan and accrued interest over the loan term,I think this is unfair as it is in effect another loan. It didn't represent value for money and was a unnecessary addition to the loan which was neither wanted or needed.

The FSA 3.6 Determining the effect of a breach or failing
(12) in a sale of a single premium [FONT=TimesNewRoman,Italic]payment protection contract[/FONT], failed to disclose to the complainant, in good time before the sale was concluded,and in a way that was fair, clear and not misleading:
(a) that the premium would be added to the amount provided under the credit agreement, that interest would be payable on the premium and the amount of that interest.


I respectfully ask that you reply to me in the first instance, acknowledging receipt of this email and that you reply to me in regard to complaint within 14 days.

Excellent post irnbru can i "steal" certain parts of this for my next round with LTSB? luckily even though i could have made up a better sar myself the one thing they did give me lol was my agreement numbers (at last) so now tommorow i can put an official fos questionaire in to them and if there still saying they can't find proof that i had ppi they will have to prove it, i'd like to use certain parts of your post especially ICOB regs (if ok with you?), well done. steve:T

cappo

amersall wrote: »

Ooh never been called a !!!!!! before
is that mushroom speak? :rotfl:

martin censored it, !!!!!!! wasn't actually what i said, ha ha marty wanted to spare your blushes