advice re loan Black horse

tommy44

Hello everyone

I am hoping somebody could advise me please regarding a loan I took out 4 years ago, via Norton finance. The loan was secure and for the sum of £15.000 for 300 months. Mad I know, but needed at the time, so please don't judge me.

The interest per month was 0.759% APR 9.5
monthly payment 126.99. Over 300 months

Along with the loan I was asked if I would like protection, which I obviously must have agreed to. This amount was for £2550.00.

Interest per month 0.759% APR 9.5%
monthly repayment 21.59. Over 300 months.

Combined monthly payment of £148.58. This amount has increased twice since then in April 2004 and I am now paying 170.44 per month.

I am now going through financial difficulty, in fact have been going through difficulty for some time, and have been budgeting, and trying to bring my out goings down. I decided to cancel the protection part of the loan, as this would hopefully reduce the monthly payment. I rang them on Wednesday to cancel, having rang them on Monday, and being told that as it was a joint loan, my partner had to be there when cancelling. So I rang back on Wednesday, and wasn't asked for the partners permission, who was there. I was initially told that yes, it was ok to cancel, but the chap I spoke to said that he would have to ring me back later after checking the paper work.

When he did, he told me that the protection part of the loan no longer existed as it ran out after 60 months, and that I was 61 months into the loan. Also that my monthly payment would not be reduced.

Now this is my query. I do not recall ever being told that the protection ceased after 5 years. There is no way I would have taken out cover for the term of the loan, for it to finish after 5 years. This would not and does not make sense. I said to the chap on the phone, "so, say, what if I had been 10 years into the loan, and one of us had been made redundant, or died, and rang to make a claim on the insurance, I would only have found out then that the protection had ceased at 5 years". No way would I have agreed to this cover, particularly, as it states on the agreement that the loan for 2,500 was also for 300 months". The chap said that they no longer do loans that way, and that if I disagreed with what he was telling me, then I could write a letter of complaint.

I checked the agreement which I signed, and it does confirm that the protection ceases after 5 years, which I obviously can't argue with. What I am arguing with, is that this was never verbally explained to me when I took out the protection. Had I been I would never had taken out the protection in the first place. I know people will say that I should have read the small print before I signed, which I know is probably true, but I didn't feel it necessary, as I was lead to believe that it ran for the full term of the loan, which is is in black and white on the agreement, as a separate payment to the actual loan of 15,000.

Does this sound right to you?. I am not looking to getting off from paying the loan or for getting any monies back. I just wanted my monthly payments to be reduced by the amount I had been paying for Protection part of the agreement. ie: the twenty odd pound insurance, which would have helped me with my monthly budget.

Is there anyway I can fight this. I am so stressed out anyway, that I feel like just accepting it, but also feel that an injustice has been done, and that I should argue my case.

Any help would be very much appreciated.

regards.

di3004

Hi Tommy

Reading this you have a case already, these policies that last only 5 years are within the mis selling category, as you now know it no longer covers you and your still paying out for it.

Do you mind if I ask if they gave you anything after 5 years, a percentage of the ppi, on many cases they state if you do not make a claim for example for sickness/unemployment etc, then you will receive half of those back.

And I bet that ppi only covered you and not your other half?

I would definately complain on this and reclaim, here is the guidelines on the link below, also check the information on the link about mis selling, and use the templates to help you, but write in your own reasons and as many as possible that occur to you.
Even if you did sign for it, this cover is dimly looked at, and the Finanical ombudsman service (FOS) should hold this in your favour if the loan company do not.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Hopefully you will be eligible to take this on to the FOS if they do not resolve your case within the loan company.

You write to the ones who arranged and sold you this finance.

They have 8 weeks to respond in full, another letter maybe required if they don't resolve your case, where they reconsider, and in the final response they should give details of the FOS.

Post all letters by recorded delivery, good luck.

di3004

Tommy

I take it then that you taken your loan out in 2005? Is that correct?

Was it sold by Norton finance as well as them providing this loan?

404172 - Norton Finance UK Ltd

Current status appointed Representative Effective Date: 31/10/2004

di3004

If successful, you will or should be repaid absolutely everything you have paid in PPI, plus interest, normally more than what it was when you taken this out, because of the interest paid within this as well, and they should lower your monthly repayments.

One of mine for eg, was just under £11K in PPI and I recieved back just under £13K.
Just to give you an idea.

However, your ppi may even help to pay off your loan or at least take a good chuck off it, which should help you, depending on how the company work this out, good luck.;)

tommy44

Hi di3004

Thank you for your quick reply. Wish I had posted here first. I have sent a letter today to Lloyds Complaint dept, the letter was copied from this site.

In answer to your question regarding if we received anything from them for not claiming, well the answer is No, nothing. In fact the only letters we have received from them was when they were hiking up the monthly payments.

We took the loan out April 2004. Norton Finance arranged the loan, but I can't remember how they did this. I think they took our details, then checked around who would lend us, then called and said that Black Horse would lend us the money. I'm not sure if we then spoke with Black horse themselves for the loan to go ahead.

It was only when I called them to cancel the Insurance, as we are struggling financially, that I was told that the Insurance ceased after 5 years, and that we were 61 months into the loan. I asked then how much the monthly overall payment for the loan would be reduced by, as if there is no Insurance, surely the amount should be reduced by the Insurance payment, I was told that the Monthly payment of £170.44 would remain the same.

My intention was to only cancel the monthly Insurance payment, but now I am angry that we are not covered for the term of the loan, which is still 21 years, but still have to pay the same amount.

Thank you for your advice and anymore help would be very much appreciated.

Kind regards

di3004

tommy44 wrote: »

Hi di3004

Thank you for your quick reply. Wish I had posted here first. I have sent a letter today to Lloyds Complaint dept, the letter was copied from this site.

In answer to your question regarding if we received anything from them for not claiming, well the answer is No, nothing. In fact the only letters we have received from them was when they were hiking up the monthly payments.

We took the loan out April 2004. Norton Finance arranged the loan, but I can't remember how they did this. I think they took our details, then checked around who would lend us, then called and said that Black Horse would lend us the money. I'm not sure if we then spoke with Black horse themselves for the loan to go ahead.

It was only when I called them to cancel the Insurance, as we are struggling financially, that I was told that the Insurance ceased after 5 years, and that we were 61 months into the loan. I asked then how much the monthly overall payment for the loan would be reduced by, as if there is no Insurance, surely the amount should be reduced by the Insurance payment, I was told that the Monthly payment of £170.44 would remain the same.

My intention was to only cancel the monthly Insurance payment, but now I am angry that we are not covered for the term of the loan, which is still 21 years, but still have to pay the same amount.

Thank you for your advice and anymore help would be very much appreciated.

Kind regards

Hi Tommy

With pleasure

in my opinion you do have a good case here and anything that applies to you on the link with the information, also write that in the letter template as well to strengthern your case.

However, you can always request a Subject access Request (SAR) from them, they have 40 days to comply, but there is a charge of £10 postal order or cheque payment for this request.
They must supply you with everything if possible requestes on the SAR, link to template below, where hopefully anything supplied may help your case, especially if this went as far as the Financial ombudsman service (FOS).

Again post by recorded delivery.
http://forums.moneysavingexpert.com/showthread.html?t=1475553

Depending where you love, but in England and Wales they should supply info going back as far as 6 years, Scotland 5 years, not sure about anywhere else.

But meanwhile I would still continue to reclaim, while waiting for the information if you want to request this.;)

tommy44

Hello again

I copied the template today and didn't put too much information in the letter, other than explaining that, I only found out that I was no longer covered by Insurance because I wanted to cancel it. I sent it by recorded delivery. Do you think I should write again giving more information such as what you have just told me, or wait until I have had their response, which no doubt will be a refusal from them.

Thanks again.

Kind regards

di3004

tommy44 wrote: »

Hello again

I copied the template today and didn't put too much information in the letter, other than explaining that, I only found out that I was no longer covered by Insurance because I wanted to cancel it. I sent it by recorded delivery. Do you think I should write again giving more information such as what you have just told me, or wait until I have had their response, which no doubt will be a refusal from them.

Thanks again.

Kind regards

Hi Tommy

Did you write that you were not aware that the policy only covered you for 5 of those years, where the loan was for a longer period?

I would mention that as well, and anything else to support your case, and of course what you have wrote above, you could actually write what you posted above first, then bring in about not knowing until you tried to cancel it, that the policy did not cover you for the whole of the loan term etc etc.

Good one Tommy, they have ripped you off in my opinion and its only right to reclaim this back.;)
And keep copies of all your letters.

tommy44

Hi

This is what I wrote:-

[FONT=Arial, sans-serif]Your salesperson did not give me full information on what the policy would and would not cover, for example that the loan only covered the first five years of my loan term.[/FONT]
[FONT=Arial, sans-serif]I only discovered that, this week, when I rang up to cancel the Insurance payment side of the loan, which should have decreased my monthly payments.[/FONT]
[FONT=Arial, sans-serif]I am not happy that my monthly payments will stay the same, as this includes the Insurance monthly payment, for which I am no longer covered.[/FONT]
[FONT=Arial, sans-serif]Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made. [/FONT]


[FONT=Arial, sans-serif]I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.[/FONT]



I just stuck to the basics but now I feel i should have put more.[FONT=Arial, sans-serif] I am expecting a battle on my hands though.

Thanks again.
[/FONT]

di3004

tommy44 wrote: »

Hi

This is what I wrote:-

[FONT=Arial, sans-serif]Your salesperson did not give me full information on what the policy would and would not cover, for example that the loan only covered the first five years of my loan term.[/FONT]
[FONT=Arial, sans-serif]I only discovered that, this week, when I rang up to cancel the Insurance payment side of the loan, which should have decreased my monthly payments.[/FONT]
[FONT=Arial, sans-serif]I am not happy that my monthly payments will stay the same, as this includes the Insurance monthly payment, for which I am no longer covered.[/FONT]
[FONT=Arial, sans-serif]Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made. [/FONT]


[FONT=Arial, sans-serif]I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.[/FONT]



I just stuck to the basics but now I feel i should have put more.[FONT=Arial, sans-serif] I am expecting a battle on my hands though.[/FONT]

[FONT=Arial, sans-serif]Thanks again.[/FONT]

Brilliant work Tommy

This should do the trick, good one.:T

If you can let us know the outcome of this, hopefully it will be a good one straight away, but if not we shall work on another letter and maybe then if you want to, you can request for a SAR which "may" also help your case, but I know the FOS will highly likely see this in your favour.

Good luck with this and post up anytime, and of course if you think you may have anything else to reclaim due to being mis sold, such as credit card ppi, store cards etc, just post up for help when required.

I will keep my fingers crossed for you.;)

Di
X

tommy44

Hi

Thanks again for your reply. I was just wondering how long it takes for them to reply. I know they have 8 weeks to, but wondered what the general wait was for the first reply.

The more I think about this, I can't believe I still have to pay for something I no longer benefit from...plus interest..

Can I ask how or who and when this was first brought to the attention of the public. I had seen something on the telly a while ago, but did not give it a thought to my policy.

Thank you for your help and advice.