First Direct - Any successess out there??

Cuddles71

I'm a newbie to this site and am interested to find out if I have a case with PPI's on two loans with First Direct (extremely nervous!). 1 in June 06, other in June 07.

I have already sent the first stage letter to FD and have received there response within 7 days. Basically they've denied misselling on both loans. One of which has single premium PPI (front loaded). The other just has normal PPI. The have responded with the following:-

The procedures followed to establish eligibility for PLPP, required us to confirm the insured was a UK resident, in paid employment for a minimum of 116 hours per week and aged between 18-64. Your confirmed you were eligible for the insurance at the time the loans were agreed.

It ends....

Taking everything into consideration, I believe you were fully aware of the loan and associated content during each part of the sales process mentioned and were able to make an informed choide, without being placed under pressure.

They are offering to remove the PLPP from my loans, however, they would need to close the existing accounts and open news loans without the protection in place. They will not charge their usual interest penalty upon redemption and you be given the same interest rate so you are not financially disadvantaged.....

I'm lost as to what to do next.

Can anyone help me?

di3004

Cuddles71 wrote: »

I'm a newbie to this site and am interested to find out if I have a case with PPI's on two loans with First Direct (extremely nervous!). 1 in June 06, other in June 07.

I have already sent the first stage letter to FD and have received there response within 7 days. Basically they've denied misselling on both loans. One of which has single premium PPI (front loaded). The other just has normal PPI. The have responded with the following:-

The procedures followed to establish eligibility for PLPP, required us to confirm the insured was a UK resident, in paid employment for a minimum of 116 hours per week and aged between 18-64. Your confirmed you were eligible for the insurance at the time the loans were agreed.

It ends....

Taking everything into consideration, I believe you were fully aware of the loan and associated content during each part of the sales process mentioned and were able to make an informed choide, without being placed under pressure.

They are offering to remove the PLPP from my loans, however, they would need to close the existing accounts and open news loans without the protection in place. They will not charge their usual interest penalty upon redemption and you be given the same interest rate so you are not financially disadvantaged.....

I'm lost as to what to do next.

Can anyone help me?

Hi Cuddles,

I would keep on at them if you were mis sold, these are standard responses and the aim here is to write to them again and ask them to reconsider, if they do not resolve this, they should give the final letter with the details of the Financial ombudsman service.

This is normally the case with some loan companies, to have a new loan without the cover included, but make sure the rate is at least equal or maybe lower than the original loan as you don't want to pay any more on this than you have to.

But do write to them again, keep at them, and if they don't resolve this to your satisfaction take it to the Financial ombudsman service.

Do you mind me asking what reasons of your mis selling, cheers, we can try to work around this on the next letter.;)

Cuddles71

Thanks Di, I will keep on. There was a number of reasons really.

1) Pushy sale, 2) 1 loan was for 7 years with single premium - they said that I was covered for the full term of the loan in terms of cover, but as far as I am aware they cover only lasts until the 5th year. 3) pre-existing medical conditions - which I know I have hypertension - which probably wouldn't be covered anyway - which in the letter she said that it doesn't state that I wasn't covered for having it - but I doubt it would be.

Any advice would be greatly received.

di3004

Cuddles71 wrote: »

Thanks Di, I will keep on. There was a number of reasons really.

1) Pushy sale, 2) 1 loan was for 7 years with single premium - they said that I was covered for the full term of the loan in terms of cover, but as far as I am aware they cover only lasts until the 5th year. 3) pre-existing medical conditions - which I know I have hypertension - which probably wouldn't be covered anyway - which in the letter she said that it doesn't state that I wasn't covered for having it - but I doubt it would be.

Any advice would be greatly received.

Hi Cuddles.

Yes keep at them.

Write back and tell them you would like them to reconsider your complaint and you were "mis sold" the PPI and "refer to your first letter with the reasons", tell them if they don't resolve this in your favour, you will have no option but to ask the Financial Ombudsman to investigate with your evidence you have to support your case.;)

These policies are looked dimly upon, its just not fair that you should continue to pay for the insurance for only 5 of those years - where the loan is for longer - then what?

You do have a good chance here.

Was this a telephone sale?
Just a thought if this was, ask if they can possibly send you the copy of the recordings, if the sale was after Jan 2005, you may be lucky to have these sent to you, good luck.

Again post by recorded delivery.;)

In regards of success, have you checked out on the above success thread? X

Cuddles71

Hiya,

This was done over the telephone on both occassions. To be honest, these were done sometime ago and I can't remember 100% of the conversation.

The point that concerns me is that they've indicated that the loan is still covered for the life of the loan - full 7 years, but I do need to check my paperwork on this as I am uncertain. But from what I've read on here they don't run longer than 5 years.... but I guess this is the tactics.

Sorry, I've obviously gone on the wrong thread - sorry....

di3004

Cuddles71 wrote: »

Hiya,

This was done over the telephone on both occassions. To be honest, these were done sometime ago and I can't remember 100% of the conversation.

The point that concerns me is that they've indicated that the loan is still covered for the life of the loan - full 7 years, but I do need to check my paperwork on this as I am uncertain. But from what I've read on here they don't run longer than 5 years.... but I guess this is the tactics.

Sorry, I've obviously gone on the wrong thread - sorry....

Hi Cuddles

Do check your policy, terms and conds.
Worth making sure, but even so you have good reasons anyway.;)