Reclaim or Cancel?

sugarhouse

In May 2005 I took out a loan with Paragon Finance for £44,000 to consolidate debt. I was sold a PPI which was a single premium lasting for 60 months of a 180 month loan. The cost of the PPI was £3399 over the 60 months and the interest on this was £2778.60. It has just over 1 year to run. My case is with the FOS against loans .co.uk who is the broker for the deal. They have been fined and have sold me a single premium policy and have sent a standard letter as their final decision so I feel I have a good chance of a refund. My dilema is that do I cancel the policy and have the loan recalualated to save money whilst the FOS are dealing with my case or do I wait what might be 3 more months to get a decision and if the decision goes against me do I then cancel?

Can I do both? I don't need the PPI as I am covered by other policies. I am trying all I can to reduce my outgoings.

Does anyone else have experience of claiming against loans .co.uk with the FOS?

di3004

sugarhouse wrote: »

In May 2005 I took out a loan with Paragon Finance for £44,000 to consolidate debt. I was sold a PPI which was a single premium lasting for 60 months of a 180 month loan. The cost of the PPI was £3399 over the 60 months and the interest on this was £2778.60. It has just over 1 year to run. My case is with the FOS against loans .co.uk who is the broker for the deal. They have been fined and have sold me a single premium policy and have sent a standard letter as their final decision so I feel I have a good chance of a refund. My dilema is that do I cancel the policy and have the loan recalualated to save money whilst the FOS are dealing with my case or do I wait what might be 3 more months to get a decision and if the decision goes against me do I then cancel?

Can I do both? I don't need the PPI as I am covered by other policies. I am trying all I can to reduce my outgoings.

Does anyone else have experience of claiming against loans .co.uk with the FOS?

Hi there

There are many who have had dealings with this company.

I would check the terms and conditions on this policy first.

If you cancel, you can still reclaim on what you have paid in while still active, and is the loan was settled they must refund you every penny of PPI, plus interest, as if you did not take out PPI from the start.

I'm sure others on here who have had dealings with these will post up to give you some idea.

Good luck.;)

petermb_2

sugarhouse wrote: »

In May 2005 I took out a loan with Paragon Finance for £44,000 to consolidate debt. I was sold a PPI which was a single premium lasting for 60 months of a 180 month loan. The cost of the PPI was £3399 over the 60 months and the interest on this was £2778.60. It has just over 1 year to run. My case is with the FOS against loans .co.uk who is the broker for the deal. They have been fined and have sold me a single premium policy and have sent a standard letter as their final decision so I feel I have a good chance of a refund. My dilema is that do I cancel the policy and have the loan recalualated to save money whilst the FOS are dealing with my case or do I wait what might be 3 more months to get a decision and if the decision goes against me do I then cancel?

Can I do both? I don't need the PPI as I am covered by other policies. I am trying all I can to reduce my outgoings.

Does anyone else have experience of claiming against loans .co.uk with the FOS?

you can do both but you are claiming, in my opinion from the wrong company.
Your claim should be directed towards the lender who will have paid your broker a commission which you are due back if it was not disclosed to you. This commission would have been enhances by the fact that PPI was included on the loan.

To claim mis-selling is only half the story and therefore you will only get half the
money you are due....Or even less. The FOS are not in the position of assisting in such things.

sugarhouse

Thanks for the reply. I initially wrote to Paragon to reclaim the PPI amount and they said that it was loans .co.uk who were responsible. I then wrote to loans .co.uk who did not contest that Paragon had passed the buck to them and now FOS are dealing with loans .co.uk to recover the PPI amounts paid. I suspected it would get complicated as the cash came from Paragon and it is them I pay every month but the dealings and misselling were by loans .co.uk

Will the FOS identify who is ultimately responsible for the miselling during their investigations (as I said loans .co.uk have not contested it) and should I now approach Paragon to cancel the PPI whilst the FOS investigation is going on? I read on the FOS website that the loan may need to be recalculated as if the PPI had not been offered in the first place and without a check with the credit agencies. Can you comment on this?

My case has been with the Ombudsman since February and so I am inclined to let it take it's course in the hope that I get a full refund then I can look at how the original loan needs to be addressed.

Any advice would be appreciated.

petermb_2

sugarhouse wrote: »

Thanks for the reply. I initially wrote to Paragon to reclaim the PPI amount and they said that it was loans .co.uk who were responsible. I then wrote to loans .co.uk who did not contest that Paragon had passed the buck to them and now FOS are dealing with loans .co.uk to recover the PPI amounts paid. I suspected it would get complicated as the cash came from Paragon and it is them I pay every month but the dealings and misselling were by loans .co.uk

Will the FOS identify who is ultimately responsible for the miselling during their investigations (as I said loans .co.uk have not contested it) and should I now approach Paragon to cancel the PPI whilst the FOS investigation is going on? I read on the FOS website that the loan may need to be recalculated as if the PPI had not been offered in the first place and without a check with the credit agencies. Can you comment on this?

My case has been with the Ombudsman since February and so I am inclined to let it take it's course in the hope that I get a full refund then I can look at how the original loan needs to be addressed.

Any advice would be appreciated.

They would wouldnt they? (Paragon I mean)

sugarhouse

As I said Loans .co.uk haven't contested it but wrote to me to say I had 30 days when the PPI was sold to refuse it and FOS are investigating them. They have already been fined for misselling PPI.

petermb_2

sugarhouse wrote: »

As I said Loans .co.uk haven't contested it but wrote to me to say I had 30 days when the PPI was sold to refuse it and FOS are investigating them. They have already been fined for misselling PPI.

There are a number of issues here rolled into one. You can take the simplistic view in that the broker( Loans.co.uk) mis-sold the ppi.

On the other hand the broker introduced you to the lender and recieved commission, which will have been undisclosed. This means you are entitled to the commission plus interest. No broker or lender is going to volunteer this money back. They will have to be forced to do so. You are also entitled to the ppi premium plus interest paid plus statutory.

This does get complicated and is therefore best left in the hands of the professionals to deal with, ( emphasis on "professionals") who will look at all issues surrounding the loan and the ppi and the commissions and seek compensation based on all these things at the same time.

sugarhouse

Thanks again petermb for your comments. Do I bring all of these points to the attention of the FOS or do you think they will understand all of what went on and investigate both Loans .co.uk and Paragon? I filled in the standard complaints form from the FOS website.

petermb_2

sugarhouse wrote: »

Thanks again petermb for your comments. Do I bring all of these points to the attention of the FOS or do you think they will understand all of what went on and investigate both Loans .co.uk and Paragon? I filled in the standard complaints form from the FOS website.

This is my point. The FOS have only one remit, and that it to deal with PPI mis-selling. All the other issues I have mentioned are not dealt with by the FOS at all.

You can only seek compensation on the other issues by using the courts or at least to be able use the threat of court action. To do this you need the professionals or learn about the law and try to take them on yourself. Doing so will become more and more difficult as lenders are using bigger and better barristers all the time to try to defend their position.