Freedom Finance

pedro321

Hi,

Please can somebody help.

I took out a secured loan with Freedom Finance (MoneyPartners) in March 06 and upon completion of the documentation and release of funds i was sent a letter saying that the legal ownership had transferred to Kensington Mortgage Company. I was mis-sold PPI but am not sure who to send my claim to?

Any help would be much appreciated?

di3004

pedro321 wrote: »

Hi,

Please can somebody help.

I took out a secured loan with Freedom Finance (MoneyPartners) in March 06 and upon completion of the documentation and release of funds i was sent a letter saying that the legal ownership had transferred to Kensington Mortgage Company. I was mis-sold PPI but am not sure who to send my claim to?

Any help would be much appreciated?

Hi hun
In this case I would write to the two, just to save the work later, make each one aware that you have wrote to the other also.

Do you need help, such as templates etc?
Good luck.;)

Di

pedro321

Hi,

Thanks for the quick response

Any help with templates would be much appreciated.

Also, i presume that as long as i am up-to-date with my payments there is nothing the lender can do (i.e. ask for full repayment etc)

Pete

di3004

pedro321 wrote: »

Hi,

Thanks for the quick response

Any help with templates would be much appreciated.

Also, i presume that as long as i am up-to-date with my payments there is nothing the lender can do (i.e. ask for full repayment etc)

Pete

Hi again Pete.

Hope you found the templates okay on the link I sent you by PM.

In regards of your query about being up to date that is fine, so no worries, you should receive back what you paid plus interest directly to you.;)

Di
x

nobbymyles

Sorry to interuped,

I am in a simular position. We have taken a loan with First plus, with Freedom Finance acting as the brooker. I am confused as to where to start purley due to the brooker involvement. Any help or Templates would be really appreciated.

Cheers

pedro321

I have sent a letter to both parties - will let you know what response i get

nobbymyles

Any Chance you can Post templates over to me? Cheers

di3004

nobbymyles wrote: »

Any Chance you can Post templates over to me? Cheers

Hi there hun, if you check on this link here
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

You will find some useful and helpful info, also reclaim templates.

They have 8 weeks to respond in full, keep on a them until you receive the final letter.

In the final letter they should let you know how you can take this further if your not satisfied, generally with the Financial ombudsman service.

Post all letters by recorded delivery, good luck and please post up if any further help is required.;)

Di
X

nobbymyles

Thanks for teplate link.

I have used parts of this letter, Can you take a look at my first draft and let me know your honest feelings about it. Much apreciated.

Dear Sir or Madam
Loan Account no: xxxxxxxx


This letter has been sent to Firstplus and Freedom finance and Barclays insurance (Dublin) at the same time, as I believe both companies to be either partly or wholly responsible.

When we took the loan with your company, we were not given a full and detailed explanation of payment protection insurance and was lead to believe by your company/representative that it was part of the conditions of the loan. It has only become apparent to us after the recent coverage by the media, and following the recent OFT and FSA investigations regarding the mis-selling of ppi as a single premium by finance companies.

We believe that we have been gravely mis-led and have been mis-sold this expensive insurance, as we were not clear that the repayment of this single premium loan, would incur interest for the entire length of the loan, whilst the PPI would only be in place for 5 years. We feel we were lured into this payment protection by the lump sum payout refunding all of the ppi paid after just 5 years. We have realized that this is not the case.

We were not advised that equivalent cover could be provided by paying on a monthly basis thus avoiding having to pay interest on the finance provided by yourselves. Research has shown that PPI cover for the loan repayment could be provided for as little as £12.60 per month through an independent company. Rather than advising that this cover could be provided elsewhere and for significantly less money your sales agent recommended adding £9796 onto the loan.

Your responsibilities
We would draw your attention to the terms of the contract which you agreed to at the time that we opened the account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law and the Financial Ombudsman service.

Finally we believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth. We believe you should have made it clear to us that the policy generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

What we require

The original premium was £9796 added to the loan amount from the offset 15th Oct 2006. I presume that interest at 10.44% (variable) was added to this amount.(unless you can inform me otherwise).

My targets to resolve this matter
We are writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity. And for the account to be restructured at no costs to ourselves to reflect never having a single premium PPI.


We hope that you will enter into a sincere dialogue with us about this matter and we are writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. We will give you 28 days to reply to us accepting, unconditionally, our request in principle and letting me know a date by which we will receive this payment.

If you do not respond, or you do not respond positively, within this time period, we shall send A further letter advising that we will forward our complaint to the Financial Ombudsman Service.

Yours faithfully,


Any honest thoughts much apreciated.

di3004

nobbymyles wrote: »

Thanks for teplate link.

I have used parts of this letter, Can you take a look at my first draft and let me know your honest feelings about it. Much apreciated.

Dear Sir or Madam
Loan Account no: xxxxxxxx


This letter has been sent to Firstplus and Freedom finance and Barclays insurance (Dublin) at the same time, as I believe both companies to be either partly or wholly responsible.

When we took the loan with your company, we were not given a full and detailed explanation of payment protection insurance and was lead to believe by your company/representative that it was part of the conditions of the loan. It has only become apparent to us after the recent coverage by the media, and following the recent OFT and FSA investigations regarding the mis-selling of ppi as a single premium by finance companies.

We believe that we have been gravely mis-led and have been mis-sold this expensive insurance, as we were not clear that the repayment of this single premium loan, would incur interest for the entire length of the loan, whilst the PPI would only be in place for 5 years. We feel we were lured into this payment protection by the lump sum payout refunding all of the ppi paid after just 5 years. We have realized that this is not the case.

We were not advised that equivalent cover could be provided by paying on a monthly basis thus avoiding having to pay interest on the finance provided by yourselves. Research has shown that PPI cover for the loan repayment could be provided for as little as £12.60 per month through an independent company. Rather than advising that this cover could be provided elsewhere and for significantly less money your sales agent recommended adding £9796 onto the loan.

Your responsibilities
We would draw your attention to the terms of the contract which you agreed to at the time that we opened the account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law and the Financial Ombudsman service.

Finally we believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth. We believe you should have made it clear to us that the policy generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

What we require

The original premium was £9796 added to the loan amount from the offset 15th Oct 2006. I presume that interest at 10.44% (variable) was added to this amount.(unless you can inform me otherwise).

My targets to resolve this matter
We are writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity. And for the account to be restructured at no costs to ourselves to reflect never having a single premium PPI.


We hope that you will enter into a sincere dialogue with us about this matter and we are writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. We will give you 28 days to reply to us accepting, unconditionally, our request in principle and letting me know a date by which we will receive this payment.

If you do not respond, or you do not respond positively, within this time period, we shall send A further letter advising that we will forward our complaint to the Financial Ombudsman Service.

Yours faithfully,


Any honest thoughts much apreciated.

Hi there

What a great letter, and it seems you have covered everything, well done.:T

However, its entirely up to you if you wanted to put the figures in at this point, there is no harm in doing this, because if successful they would have to refund you back everything you paid in PPI anyway plus interest, so in other words put you back in the position as if this product was not taken out in the first place. (its always handy to have the figures though - just in case).
But again that is up to you, its a great letter.

I note you have added 28 days, but the timescales they do actually have is 8 weeks in full to respond, yet some will add 28 days, they may write back and let you know they need longer such as 8 weeks, as this is what they are allowed in this case.

But overall well done, its a fantastic letter that covers everything, good luck with this hun and please keep us posted and remember to post by recorded delivery.;)

Di
X

Phil

Hi everyone,

I hope you don't mind me joining in on this thread rather than starting a new one!

I am acting on behalf of my Gran, who used to live with my Aunt and her husband but is now in a care home with me acting as her Receiver (appointed by the Court of Protection - a different story).

Anyway, my Aunt and her husband took out a secured loan on their house in May 2005. In the course of doing so, they were of course sold PPI upfront as a single payment to the tune of £8,571.50. My Gran also signed up to this but, unfortunately, can't really be quizzed about it anymore as there is no way she will understand nor care

I wrote to Freedom Finance (who sold them a First Plus loan) and complained using the standard template letter a few weeks ago and now they have responded offering £2,000 in full and final settlement.

Can I have some advice please, do I:

1) Accept the £2000 - surely not enough compared to £8571.50+interest for 4 years that they have paid?

2) Phone them up tomorrow and see if I can get them to increase their offer?

3) Write back asking for more?

4) Go straight to the Ombudsman?

Help please!

Phil