PPI on a Car Loan following early retirement

Laitty

Hi

Many thanks in advance to anyone who answers the queries below.

a) My parents brought a car from The Funding Corp in Feb 2005 which had a loan attached to it with a PPI. The PPI costs £90 a month which, now I think about it, is outrageously expensive. I've suggested that this has probably been mis-sold for various reasons such as the sales assistant being unqualified, the PPI being forced upon them, and no alternatives offered.
Perhaps more importantly, my father decided to take early redundancy in Nov 2006. We therefore wrote to TFC cancelling the policy (covering illness, redundancy et al) as we no longer required it. They claimed that we could not cancel - despite the T&C's stating we could at any time - as the loan had been calculated to last 'x' number of year and therefore we had to continue to pay it. As I understand it, this is also another reason to reclaim the PPI - albeit from Nov 2006 only.
I wonder whether any one in a similar situation was able to reclaim their PPI or had any other advice. I have written to TFC to request the money back and have refused to pay any more cash to them until the matter is settled.
Also, as there is only a few months left on the agreement - when does the car become legally ours?

Finally, and maybe slightly off-topic. I took out a large loan with Egg a few years ago. Unfortunately, I went off work ill and, due to the nature of the illness, found myself unable to claim on the PPI. Since then, my financial position has got worse and I'm now using a Debt agency to help pay my outstanding creditors. Because of this, would I still be in a position to reclaim the PPI from Egg?

Many, many thanks in advance for your advice.

di3004

Laitty wrote: »

Hi

Many thanks in advance to anyone who answers the queries below.

a) My parents brought a car from The Funding Corp in Feb 2005 which had a loan attached to it with a PPI. The PPI costs £90 a month which, now I think about it, is outrageously expensive. I've suggested that this has probably been mis-sold for various reasons such as the sales assistant being unqualified, the PPI being forced upon them, and no alternatives offered.
Perhaps more importantly, my father decided to take early redundancy in Nov 2006. We therefore wrote to TFC cancelling the policy (covering illness, redundancy et al) as we no longer required it. They claimed that we could not cancel - despite the T&C's stating we could at any time - as the loan had been calculated to last 'x' number of year and therefore we had to continue to pay it. As I understand it, this is also another reason to reclaim the PPI - albeit from Nov 2006 only.
I wonder whether any one in a similar situation was able to reclaim their PPI or had any other advice. I have written to TFC to request the money back and have refused to pay any more cash to them until the matter is settled.
Also, as there is only a few months left on the agreement - when does the car become legally ours?

Finally, and maybe slightly off-topic. I took out a large loan with Egg a few years ago. Unfortunately, I went off work ill and, due to the nature of the illness, found myself unable to claim on the PPI. Since then, my financial position has got worse and I'm now using a Debt agency to help pay my outstanding creditors. Because of this, would I still be in a position to reclaim the PPI from Egg?

Many, many thanks in advance for your advice.

Hi and Welcome.;)

I think both yourself and your parents have a good case here.

Despite them saying they were unable to cancel, of course they can.


For both your reasons, write to them with your own reasons, here is the link below with templates to help you through this, write your own reasons though.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

They have 8 weeks to respond, post all letters by recorded delivery, if no response at all then I would contact the Finanical ombudsman service (FOS) and ask if they can investigate, but make sure the companies are given 8 full weeks first.

In their final response they should give details of the FOS if eligible.

Go for it and keep on at them, good luck and please keep us posted.;)

I have no idea in regards of the car, of when it will be legally yours, hopefully someone will post up on this matter for you.

Laitty

Update:

We have now received a letter from The Funding Corporation telling us that we are in arrears to the tune of £708 and thereby threatening legal action should we not pay. That, and the loan balance is £4,300.

This is a surprise as there are only 10 months of payments left on the account at £267 per month!

I am writing to them informing them that we are still awaiting a response to our PPI letter of May 11th (the 8 weeks having not passed yet obviously) but that we won't be paying any money until the problem is resolved. Given that we believe the mis-sold PPI is worth around £4,000-5000 I would hate to give them any more......but I risking problems by doing so?

Again, any thoughts or idea greatly appreciated.

di3004

Laitty wrote: »

Update:

We have now received a letter from The Funding Corporation telling us that we are in arrears to the tune of £708 and thereby threatening legal action should we not pay. That, and the loan balance is £4,300.

This is a surprise as there are only 10 months of payments left on the account at £267 per month!

I am writing to them informing them that we are still awaiting a response to our PPI letter of May 11th (the 8 weeks having not passed yet obviously) but that we won't be paying any money until the problem is resolved. Given that we believe the mis-sold PPI is worth around £4,000-5000 I would hate to give them any more......but I risking problems by doing so?

Again, any thoughts or idea greatly appreciated.

Hi there

Well I agree its best to write back, so your probably doing the right thing here, because it shows your not ignoring the letter.;)

Of course let them know what is happening here and as soon as you have a successful response these matters will be sorted out then, good luck and please let us know how you get on and if any prbs let us know.;)

Laitty

Update (11/7/09)

We've received two letters this morning from TFC.

Letter 1: Not surprisingly, they have written to say that the PPI was not 'mis-sold'. They claim that as some of the early negotiations were made by phone and that the finance was alreayd in place before we stepped in to the showroom, that they did not advise us that we had to have the insurance to get credit. They also say that a Demands & Needs Statement determined the suitability & eligibility of our insurance needs (not that a copy was sent to us). They've asked us to confirm what insurance we had at the time - but I don't see how that is relevant? We weren't given the option to find an alternative supplier!
Finally, they claim their staff are fully trained.....but we argue that they are not qualified to sell Financial items.

On the plus side, they have agreed that we should have been able to cancel the PPI when my father retired. Well, no, that's not exactly true. They've said they'll refund back to Jan 2008, but my father retired in Nov 2006. Also, they've just offered to reduce the payments about by £10 a month (only ten months remaining), plus take £122 off the current arrears. The insurance amount per month was £96....so how have they only worked it out to be £292? I've asked for a detailed summary, deferring the decision of accepting their settlement offer, and giving the 14 days before passing the file on to the FOS.

The second letter is perhaps slightly more worrying: It is a notice of seizure on the car was we are in arrears for, well, the letter does not state how much we are in the arrears! Again, I'm writing to inform him that this is in disupte, and that given the retirement figure above, they actually owe us more than we owe them.

The question is, how seriously should we take the Notice of seizure?

Many thanks to all those who reply in advance.

di3004

Laitty wrote: »

Update (11/7/09)

We've received two letters this morning from TFC.

Letter 1: Not surprisingly, they have written to say that the PPI was not 'mis-sold'. They claim that as some of the early negotiations were made by phone and that the finance was alreayd in place before we stepped in to the showroom, that they did not advise us that we had to have the insurance to get credit. They also say that a Demands & Needs Statement determined the suitability & eligibility of our insurance needs (not that a copy was sent to us). They've asked us to confirm what insurance we had at the time - but I don't see how that is relevant? We weren't given the option to find an alternative supplier!
Finally, they claim their staff are fully trained.....but we argue that they are not qualified to sell Financial items.

On the plus side, they have agreed that we should have been able to cancel the PPI when my father retired. Well, no, that's not exactly true. They've said they'll refund back to Jan 2008, but my father retired in Nov 2006. Also, they've just offered to reduce the payments about by £10 a month (only ten months remaining), plus take £122 off the current arrears. The insurance amount per month was £96....so how have they only worked it out to be £292? I've asked for a detailed summary, deferring the decision of accepting their settlement offer, and giving the 14 days before passing the file on to the FOS.

The second letter is perhaps slightly more worrying: It is a notice of seizure on the car was we are in arrears for, well, the letter does not state how much we are in the arrears! Again, I'm writing to inform him that this is in disupte, and that given the retirement figure above, they actually owe us more than we owe them.

The question is, how seriously should we take the Notice of seizure?

Many thanks to all those who reply in advance.

Hi there

Sorry to hear this.

In regards of this, give the Financial ombudsman a ring on Monday, it's like they are trying to put the frightners on you.

As I have not come across this one before, this may be one for another thread, maybe on the DFW thread about the notice, I'm sure they can help in this case.;)

Going back to the PPI, its seems like a bog standard response to me, and if you take this to the FOS, I'm sure they will investigate this case for you, I know its a case of your word against them, but have you tried to request for a Subject access request (SAR) yet?

If not it may be a good idea, where they must comply by 40 days and supply everything possible as requested on the SAR, there is a £10 postal order or cheque payment charge for this, but you may find some useful information to support your case.
If you do this, post by recorded delivery, because its your proof of posting.
http://forums.moneysavingexpert.com/showthread.html?t=1475553

Please let us know how you get on and about the notice issue, do post about that one on the dfw thread, you will find this above.;)

Good luck.

Laitty

Latest update: Have sent them some cash as a goodwill gesture as I'm waiting for someone from Essex Trading Standard to get in touch. They have a 4 day turnaround though, and by that time, the car might have gone.

However, there has been some new information which might be useful. Firstly, its a Bill of Sale agreement which might make a difference. More importantly, whilst looking through our copies of the Credit Agreement with them, I noticed that though we had signed it, there was no signature from The Funding Corporation on the paperwork - nor was their a witnesses signature. As I understand it, that makes the credit agreement unenforceable does it not?

di3004

Laitty wrote: »

Latest update: Have sent them some cash as a goodwill gesture as I'm waiting for someone from Essex Trading Standard to get in touch. They have a 4 day turnaround though, and by that time, the car might have gone.

However, there has been some new information which might be useful. Firstly, its a Bill of Sale agreement which might make a difference. More importantly, whilst looking through our copies of the Credit Agreement with them, I noticed that though we had signed it, there was no signature from The Funding Corporation on the paperwork - nor was their a witnesses signature. As I understand it, that makes the credit agreement unenforceable does it not?

Hi there

Bumping this up for you, not sure about unenforceable credit agreements etc, I'm sure someone will post and clarify this issue for you, good luck.;)

Laitty

No update but bumping this up in the hope that someone can help? Does no signature on the credit agreement mean that it is unenforceable?

Many TIA

di3004

Laitty wrote: »

No update but bumping this up in the hope that someone can help? Does no signature on the credit agreement mean that it is unenforceable?

Many TIA

Hi TIA

Not so sure on this matter in regards of unenforceability, hopefully someone who has knowledge on these actual issues will post up soon with some advice for you, all the best.;)

Laitty

Update: Having waited 8 weeks from the date of the original complaint (more in fact), last week we submitted our complaint to the Financial Ombudsman Service complete with a copy of all documentation.
Later that week, we received another letter from TFC which we subsequently passed on to FOS.
Imagine my surprise then, when we received ALL of the documentation back from the FOS! I cannot for the life of me understand why an organisation would do this - surely, you keep all the correspondance on file for easy reference?
The letter asked for a couple of things: firstly, a response to a letter that TFC had sent - a copy of the letter responding to that had been sent as part of the original complaint file.
Secondly - the letter stated that as we had not received a 'final response' from TFC, that we could not proceed with our complaint! Has anyone else had this? On the complaint form, there is a question 'have you received a final response from the company yes/no'. Surely, if they are demanding that we get a final response they should have put on the form, 'if no, please wait until you receive a final response before passing on to the FOS'. That way we would have not wasted our time and effort.
I really feel that the FOS have let us down here by poor practise. A copy of the letter they wanted (which was already provided) could have been emailed to them within minutes had they phoned/emailed. And how long do we wait for a final response? What if we never get a final response? I thought the FOS was supposed to help the consumer - not be of benefit to the Financial companies!
As far as I am concerned, the complaint has now taken longer than 8 weeks (plenty more given that we first raised the issue in May this year!), the FOS should now investigate the complaint properly without recourse to a 'final response'. If they are so desperate for one, they themselves should ask for it. Perhaps others may feel differently in thinking that I want them to do everything - that is not the case. We have followed the procedures as specified on here and other websites, so have done everything we should have done.

Does anyone have any thoughts or suggestions regarding this?

TIA
Laitty.