PPI Reclaiming Discussion part 4

di3004

And here......................

http://www.moneymadeclear.fsa.gov.uk/news/product/unfair_contracts/ppi/ppi_information.html

Payment protection insurance (PPI) – Refunds of single premiums

What is payment protection insurance?


Payment protection insurance, or PPI, is insurance that will pay out a sum of money to help you cover your monthly repayments on mortgages, loans, credit/store cards or catalogue payments if you are unable to work, or become unemployed through no fault of your own.

With single premiums, you pay the full cost of the insurance up-front. This premium is usually added to the total value of the loan with interest charged on top.

To find out more, see Payment protection insurance.



What did we think was unfair?


Some policies state that you will not be able to claim any refund of your premium outside the statutory cancellation period of 14 or 30 days.



Why did we think it was unfair?


If you repay your loan early, the PPI is of no further value to you because the PPI benefits are linked to it. So a firm should not prevent you from receiving a partial refund from the PPI policy if you cancel the policy or repay the loan early. However, you may not be entitled to a refund if you cancel very close to the end of the period covered or if you have already made a successful claim under the policy.



What did we do?


We obtained agreements from firms to change their contracts and practices so that consumers would receive refunds when repaying their loans early. The details of these agreements are listed at the bottom of this page.

We then discussed our concerns about terms which prevent consumers from receiving a refund if they cancel the policy for any reason with the industry trade bodies, which included the Association of British Insurers (ABI) for the insurance industry and the British Bankers' Association (BBA) for the banking industry.

They agreed that firms should also allow you to receive a refund if you cancel your policy without repaying the loan but that you may not be entitled to a refund if you cancel very close to the end of the period covered or if you have already made a successful claim under policy.

We expect all firms to take notice of these agreements.



What should I do if I want to repay my loan early?


Firms should allow you to receive a refund if you cancel your policy when you repay the loan, except if you cancel very close to the end of the period covered by your policy or if you have already made a successful claim under the policy.

If you have a contract with a firm that prevents you from claiming a partial refund of your PPI premium if you settle your loan early, ask the firm if they will give you a partial refund anyway. If they do not, and you believe you are entitled to one, complain to the firm and tell them about our work. You can also report the term to us – see Unfair contract terms.



What should I do if I want to cancel my policy without repaying the loan?


The trade bodies have agreed that firms should also allow you receive a refund if you cancel your policy without repaying the loan, except if you cancel very close to the end of the period covered or if you have already made a successful claim under the policy.

If you have a contract with a firm that prevents you from claiming a refund of your PPI premium if you want to cancel the insurance, again, ask the firm if they will give you a partial refund. If they do not, and you believe you are entitled to one, complain to the firm and tell them about our work. You can also report the term to us – see Unfair contract terms.



Why have I received a letter from my firm telling me they have changed the application of the cancellation term in my PPI contract?


Firms that have terms that prevent you from receiving any refund of your premium if you cancel the policy should be writing to their customers to tell them how refunds will now be dealt with in practice. If you receive a letter like this from your firm, read it carefully and contact them if you have any questions about it.



What refund will I get if I cancel my PPI contract outside the statutory cancellation period?


There is not a 'one-size fits all' rule for calculating refunds, due to the many different types of firms and commercial practices in the PPI industry.

We take the view that refunds should be based on firms' reasonably incurred costs. These costs might include administrative fees, a proportion of commission and the fact that the risk at the beginning of the policy is higher than at the end of the policy, so more premium is used early on. This means that the refund you get may not be in proportion to the remaining policy length.

Firms should soon be including examples or a table to show how refunds will be calculated in new policies. This will help to improve the transparency of refunds.

kelly78

Thanks di3004 will start my letter writing today.

di3004

kelly78 wrote: »

Thanks di3004 will start my letter writing today.

Your welcome Kelly

Post if you need any help with anything, good luck to you.;)

nissan25

Hi Guys,
Thought I would like to let you know that Haifax and Citifinancial have paid me back over £1000 between them with just the first MSE PPI download lettter.

Can I ask can you claim PPI back through a mail order (catalogue company)/ just discovered from old statements (account closed) that I had been paying PPI for years?

di3004

nissan25 wrote: »

Hi Guys,
Thought I would like to let you know that Haifax and Citifinancial have paid me back over £1000 between them with just the first MSE PPI download lettter.

Can I ask can you claim PPI back through a mail order (catalogue company)/ just discovered from old statements (account closed) that I had been paying PPI for years?

Hi there

Well done on your Success.:beer::T:beer:

Yes go for it, although it may be more difficult if it was finance taken out from years ago, yet there has still been success, if you never try - you will never know, so go for it, and good luck.;)

nissan25

di3004 wrote: »

Hi there

Well done on your Success.:beer::T:beer:

Yes go for it, although it may be more difficult if it was finance taken out from years ago, yet there has still been success, if you never try - you will never know, so go for it, and good luck.;)

Thanks di3004 - although i have not used the a/c for a while i still have some statements and most of the ppi is still within the last 6 years, I'll send a letter off tomorrow and let you all know how i got on.

di3004

nissan25 wrote: »

Thanks di3004 - although i have not used the a/c for a while i still have some statements and most of the ppi is still within the last 6 years, I'll send a letter off tomorrow and let you all know how i got on.

Your welcome.;)

Also if you've no agreement with this, you can request a copy of the agreement in a separate letter if then within the last 6 years you taken this out, just enclose a payment of £1 either by cheque or postal order to cover the cost of this request, they should send this by 12 days.

They may actually even send a copy back with the first response which will be free, but as you know it could be 8 weeks before you hear, good luck with this.;)

shakermaker_2

My first post so please be gentle!!

I'm currently sorting through the estate of my late father in law on behalf of my mother in law and i came across 2 secured loan agreements (2005 and 2006) from barclays the second paying off the first and the second loan was also repaid after around a year. PPI premiums (single premium) on both loans totalling over £30,000!!!! Just wondering if anyone has had any joy reclaiming against Barclays as I'm just about to kick of the process with the letters with my mother in law. Any tips greatfully received.

thanks:rolleyes:

di3004

shakermaker wrote: »

My first post so please be gentle!!

I'm currently sorting through the estate of my late father in law on behalf of my mother in law and i came across 2 secured loan agreements (2005 and 2006) from barclays the second paying off the first and the second loan was also repaid after around a year. PPI premiums (single premium) on both loans totalling over £30,000!!!! Just wondering if anyone has had any joy reclaiming against Barclays as I'm just about to kick of the process with the letters with my mother in law. Any tips greatfully received.

thanks:rolleyes:

Hi and welcome.;)

And yes there have been much success with Barclays, I would give it a go of reclaiming if there is a case here.

Check here for more info and reclaim templates:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

On the reclaim letter write down own reasons for being mis sold.

They have 8 weeks to respond in full.

They may respond by not resolving this matter, if this is the case then write back and request them to reconsider, they should give details of the financial ombudsman service (FOS) in the final letter.

Post all letters by recorded delivery.

I would explain about the 2 loan ppi in the same letter with the 2 account numbers.

You do not need to write down any figures in the reclaiming letter, the figures will come in later on.

Please feel free to post for any further help.
Good luck.;)

jjwhittle1981

Morning all,

Well i had at last some good news this weekend, got an unexpected letter from RBS about a loan in 2004, they offered me a goodwill gesture of almost the amount i was claiming off them, so sent the acceptence letter back straight away.

They had been messing me about with paperwork for over 18months,i had sent the forms off to the FOS and they rung my up asking for more information, i told them that RBS were being really slow and kept fobbing me off, so they(FOS) got in contact with RBS on my behalf and with 6 weeks of this happening an offer was on my doorstep.

So for you still waiting dont give up hope, im just waiting for capital 1 now but im not holding my breath for this one as its my biggest claim.