PPI Reclaiming Discussion part 4

di3004

An example from a March 2009 article "Thisismoney" of people unable to pay their mortgage due to PPI mis selling issues..........
So another good reason for a petition to avoid this happening again.....

http://www.thisismoney.co.uk/credit-and-loans/ppi-mis-selling/article.html?in_article_id=480514&in_page_id=506

Loan cover has put our home in peril

Financial Mail
15 March 2009


Families face losing their homes because banks are increasingly obstructing their complaints of being mis-sold loan insurance.



The law has recently been changed to protect new borrowers against mis-selling of payment protection insurance (see right), but this does nothing to help the tens of thousands of complainants still waiting for refunds of premiums.


PPI is a form of cover that is supposed to kick in if borrowers cannot meet loan repayments due to sickness or redundancy.

The policies, extortionately priced and often worthless to borrowers who are self-employed or disqualified because of pre-existing medical conditions, were sometimes secretly added to the loans without borrowers' knowledge or consent.

In an attempt to stall compensation payments, many financial services companies are rejecting cases out of hand, hoping that complainants will either give up their claim or that they will take their case to the Financial Ombudsman Service, ensuring a long delay before a decision is made.
The majority of providers, including the High Street banks, are rejecting mis-selling complaints at an unacceptably high level, according to the Ombudsman.


The FOS is so overwhelmed with complaints that cases are taking an average of up to nine months to be settled.

As Financial Mail reported last month, the Ombudsman has complained to the Financial Services Authority about certain firms, including one major lender where 100 per cent of the complaints against it are upheld, suggesting that the bank deliberately rejects every case regardless of merit. With several other
lenders, 90 per cent or more of complaints are upheld, according to the Ombudsman.

The FSA appears to have done nothing in response to the Ombudsman's complaints. It has not publicly censured any companies for PPI complaints mis-handling, although the blanket rejection of complaints would be a serious breach of the regulator's requirement that banks treat customers fairly.

For homeowners in hardship, swift refunds are desperately needed. Ann and Jamie Hayward, from Stafford, have two PPI mis-selling cases with the Ombudsman against defunct lenders Southern Pacific Personal Loans and Advantage Loans. The cases have been with the Ombudsman since last July.

The premiums for the PPI policies attached to their loans totalled a horrifying-12,000, which was added to their overall £47,000 borrowings and charged as an additional loan.

The couple settled their loans in June 2007 by rolling the debt into their main mortgage. None of the PPI premiums was refunded at the time and, in addition, the couple paid hefty penalties to close the loans down.
The case is complicated by the fact that the loans were sold via a broker who has since gone out of business. The lenders argue they are not to blame. But now the Haywards have run into serious financial problems-Ann, 32, was made redundant from her job designing store layouts for china manufacturer Wedgwood when it went into administration in January.

While Ann looks for work, she and Jamie, 37, a self-employed tiler, have had to reduce the monthly repayments on their mortgage. It is a worrying time for the couple who have a 20-month-old daughter, Mia. 'We now have arrears on our mortgage, which is a huge worry,' says Ann. 'Our lender, Kensington, has been understanding so far, but will review the situation in three months.'

Ann adds: 'I'm desperately looking for work, but it is proving difficult. The refund of our PPI premiums would help us enormously and more than cover our mortgage arrears. In the meantime, we face the prospect of losing our home.'

The Ombudsman will fast-track cases where a complainant is in financial hardship or is seriously ill, but its systems are groaning under the mounting PPI caseload.

The Haywards applied to be fasttracked, but their case was first thrown out because the Ombudsman mistakenly thought their complaint referred to the mis-selling of the loans rather than the PPI.

The couple are waiting to see whether the Ombudsman will now allow them to be fast-tracked.

Steve Bloor is managing director of givememymoney.co.uk, a claims handler that specialises in PPI cases. He has had more than a dozen clients with hardship issues, but says being fast-tracked by the Ombudsman is not necessarily as good as it sounds.

'It takes approximately ten days for a fast-track application to be considered and even if the Ombudsman agrees to fast-track a case, it still has to be investigated by an adjudicator,' says Bloor.

'So there is still a delay on top of the wait borrowers have already had with their lenders before they rejected the complaint. For homeowners in arrears, every week that passes without a decision is stressful. Their situation is usually deteriorating all the time.'
Dan Waters, FSA director of retail policy, says: 'We are taking a keen interest in this matter. Now is not the time for companies to be cutting back on resources in this area

dialysis

di3004 wrote: »

An example from a March 2009 article "Thisismoney" of people unable to pay their mortgage due to PPI mis selling issues..........
So another good reason for a petition to avoid this happening again.....

http://www.thisismoney.co.uk/credit-and-loans/ppi-mis-selling/article.html?in_article_id=480514&in_page_id=506

Loan cover has put our home in peril

Financial Mail
15 March 2009


Families face losing their homes because banks are increasingly obstructing their complaints of being mis-sold loan insurance.



The law has recently been changed to protect new borrowers against mis-selling of payment protection insurance (see right), but this does nothing to help the tens of thousands of complainants still waiting for refunds of premiums.


PPI is a form of cover that is supposed to kick in if borrowers cannot meet loan repayments due to sickness or redundancy.

The policies, extortionately priced and often worthless to borrowers who are self-employed or disqualified because of pre-existing medical conditions, were sometimes secretly added to the loans without borrowers' knowledge or consent.

In an attempt to stall compensation payments, many financial services companies are rejecting cases out of hand, hoping that complainants will either give up their claim or that they will take their case to the Financial Ombudsman Service, ensuring a long delay before a decision is made.
The majority of providers, including the High Street banks, are rejecting mis-selling complaints at an unacceptably high level, according to the Ombudsman.


The FOS is so overwhelmed with complaints that cases are taking an average of up to nine months to be settled.

As Financial Mail reported last month, the Ombudsman has complained to the Financial Services Authority about certain firms, including one major lender where 100 per cent of the complaints against it are upheld, suggesting that the bank deliberately rejects every case regardless of merit. With several other
lenders, 90 per cent or more of complaints are upheld, according to the Ombudsman.

The FSA appears to have done nothing in response to the Ombudsman's complaints. It has not publicly censured any companies for PPI complaints mis-handling, although the blanket rejection of complaints would be a serious breach of the regulator's requirement that banks treat customers fairly.

For homeowners in hardship, swift refunds are desperately needed. Ann and Jamie Hayward, from Stafford, have two PPI mis-selling cases with the Ombudsman against defunct lenders Southern Pacific Personal Loans and Advantage Loans. The cases have been with the Ombudsman since last July.

The premiums for the PPI policies attached to their loans totalled a horrifying-12,000, which was added to their overall £47,000 borrowings and charged as an additional loan.

The couple settled their loans in June 2007 by rolling the debt into their main mortgage. None of the PPI premiums was refunded at the time and, in addition, the couple paid hefty penalties to close the loans down.
The case is complicated by the fact that the loans were sold via a broker who has since gone out of business. The lenders argue they are not to blame. But now the Haywards have run into serious financial problems-Ann, 32, was made redundant from her job designing store layouts for china manufacturer Wedgwood when it went into administration in January.

While Ann looks for work, she and Jamie, 37, a self-employed tiler, have had to reduce the monthly repayments on their mortgage. It is a worrying time for the couple who have a 20-month-old daughter, Mia. 'We now have arrears on our mortgage, which is a huge worry,' says Ann. 'Our lender, Kensington, has been understanding so far, but will review the situation in three months.'

Ann adds: 'I'm desperately looking for work, but it is proving difficult. The refund of our PPI premiums would help us enormously and more than cover our mortgage arrears. In the meantime, we face the prospect of losing our home.'

The Ombudsman will fast-track cases where a complainant is in financial hardship or is seriously ill, but its systems are groaning under the mounting PPI caseload.

The Haywards applied to be fasttracked, but their case was first thrown out because the Ombudsman mistakenly thought their complaint referred to the mis-selling of the loans rather than the PPI.

The couple are waiting to see whether the Ombudsman will now allow them to be fast-tracked.

Steve Bloor is managing director of givememymoney.co.uk, a claims handler that specialises in PPI cases. He has had more than a dozen clients with hardship issues, but says being fast-tracked by the Ombudsman is not necessarily as good as it sounds.

'It takes approximately ten days for a fast-track application to be considered and even if the Ombudsman agrees to fast-track a case, it still has to be investigated by an adjudicator,' says Bloor.

'So there is still a delay on top of the wait borrowers have already had with their lenders before they rejected the complaint. For homeowners in arrears, every week that passes without a decision is stressful. Their situation is usually deteriorating all the time.'
Dan Waters, FSA director of retail policy, says: 'We are taking a keen interest in this matter. Now is not the time for companies to be cutting back on resources in this area

Hi Di thanks for that I wonder if the major lender is Picture the whole situation is a disgrace lets hope we get somewhere to prevent this happening with our petition.:T

di3004

dialysis wrote: »

Hi Di thanks for that I wonder if the major lender is Picture the whole situation is a disgrace lets hope we get somewhere to prevent this happening with our petition.:T

It is a digrace isn't it?
Hmm I wonder who the lender is as well.
Hopefully we will get this petition up and running real soon.;)

barloo69

I hope somebody out there can help me as I just seem to be going round in circles here.

If I believe I have missold PPI then who am I supposed to definately pursue for the missale ?. The broker that sold the PPI policy with the loan OR the financial provider that provided the loan.

Reason why I am asking is because I am receiving conflicting advice. I initially wrote to the loan provider but they have final responsed me and are saying I need to pursue the broker.

Help please.

Also the financial provider has stated I am free to refer this complaint to the FLA. Who are these FLA guys ? Is this another governing body in addition to the FOS and FSA ?

All beginning to tip me over the edge at mo......now where did I put that wine glass............................ ?

Many thanks.

di3004

barloo69 wrote: »

I hope somebody out there can help me as I just seem to be going round in circles here.

If I believe I have missold PPI then who am I supposed to definately pursue for the missale ?. The broker that sold the PPI policy with the loan OR the financial provider that provided the loan.

Reason why I am asking is because I am receiving conflicting advice. I initially wrote to the loan provider but they have final responsed me and are saying I need to pursue the broker.

Help please.

Also the financial provider has stated I am free to refer this complaint to the FLA. Who are these FLA guys ? Is this another governing body in addition to the FOS and FSA ?

All beginning to tip me over the edge at mo......now where did I put that wine glass............................ ?

Many thanks.

Hi there Barloo69,

Like yourself, over the time when complaining to the lender I'm always referred back to the broker (the ones who arranged it).
The FOS would tell you the same, but even so many state that the lender is responsible as well as they benefitted from this sale as well.

But each time I have been referred back to the broker.
However, what some people do now is write to the 2, make them aware that you have also wrote to the other to save any come backs and to cover yourself.
Because its well known for the lender to pass you back on to the broker anyway, so basically your running round in circles.
The FOS would always confirm its the broker as well.

If there have been a loan advance, then obviously its the lender, because your staying with the same company but this time the lender are arranging this for you.

Hope this makes sense.;)

The FLA are a leasing assosociation, where the FOS normally pass you onto if the FOS are unable to help, unfortunately though, there is not much success through these, however some have been successful.

For more information if you have not done so yet check out the FLA site here:
http://www.fla.org.uk/fla/

Hey any spare wine? lol, even though its only ten past 8 in the morning now lmao :beer:

Hoppy28

Hi All,

Just after a bit of advice, I sent my letter of to egg asking them to refund my PPI under misselling this was about 6 weeks. Egg have offered me a refund of £1700 plus £300 interest this on an £5000 loan which I then consolidated some credit card debts into a couple of years later increasing the borrowing to about £11000 all of which i was paying PPI. My concern is that £1700 + £300 interest does not seem enough my other concern is that Egg added the remaining PPI premium onto my new loan and then charged me another load for more PPI!! any advice of how best to approach this would be greatly appreciated.

Thanks

di3004

Hoppy28 wrote: »

Hi All,

Just after a bit of advice, I sent my letter of to egg asking them to refund my PPI under misselling this was about 6 weeks. Egg have offered me a refund of £1700 plus £300 interest this on an £5000 loan which I then consolidated some credit card debts into a couple of years later increasing the borrowing to about £11000 all of which i was paying PPI. My concern is that £1700 + £300 interest does not seem enough my other concern is that Egg added the remaining PPI premium onto my new loan and then charged me another load for more PPI!! any advice of how best to approach this would be greatly appreciated.

Thanks

Hi Hoppy.;)

I would ask them to send you a "full written breakdown of calculations of both loans", ask them to post them to you. You need to know what the settlement was from the first loan to the new loan, for instance did they give a rebate on the older one.

Did you complaint about the other loan as well, separately?

Hoppy28

Ok Thanks for the advice, its a good point because i only used the most recent loan number, thinking that this number would have stayed the same from the start, I'll request a "full written breakdown of calculations of both loans" and keep you updated on the outcome. As i've got a offer on the table I don't want upset Egg too much!!

Thanks

Hoppy

di3004

Hoppy28 wrote: »

Ok Thanks for the advice, its a good point because i only used the most recent loan number, thinking that this number would have stayed the same from the start, I'll request a "full written breakdown of calculations of both loans" and keep you updated on the outcome. As i've got a offer on the table I don't want upset Egg too much!!

Thanks

Hoppy

Hi Hoppy

Your welcome.;)

Write something like this.

Dear Sir/Madam

Account Number XXXXXXXX & XXXXXXXXX

I taken out the first loan with you on XX/XX/XXXX Account Number XXXXXXXX and then in XX/XX/XXXX - Account Number taken out a further loan which paid off the existing loan.

I am requesting you send me the breakdown of calculations of the first loan, of when this ended to take out a further loan.

If you could provide the "full breakdown of how this was calculated, this would be a help".

However, I would appreciate it if you could also send out the full written breakdown of this loan, Account Number XXXXXXXXXX of where you made me an offer for my records.

I am requesting for full written breakdown of calculations on both above loans and understand that I am entitled to be sent these details, as they are my personal loans that I taken out with you and am entitled to the calculations for my records.

I believe 7-10 days is ample time, and look forward to receiving these details from you by then.

Yours sincerely

Sign

Print.

..........................................................................................
This is just a simple made up letter, but remember as well to give the account numbers on both.

You can then pursue on the first one.

Anyway well done on the offer.:T:beer::T

pinknico

In regards to Picture if anyone knows what % of our payments went towards PPI, I would love to know. Thanks.