Letter from Alliance and Leicester

jonwayne01

hi guys just found this section!

i had a letter from alliance and leicester recently askin me to urgently contact them about a potentially mis sold ppi. before this i had no idea about PPI being a major issue but i do recall at the time being pressured into taking out after initially refusing it.

do you think this letter is a way of them panicking about a potential claim and should i just follow the MSE guide to claim or contact them direct. im worried if i call them direct i will just get fobbed off.

also i saw an advert for money boomerang and filled in an initial claim on their site, are they just jumping on the bandwagon , because they ask for an initial £10 cheque to review the claim plus 25% of the end payout if successful!?!?

di3004

jonwayne01 wrote: »

hi guys just found this section!

i had a letter from alliance and leicester recently askin me to urgently contact them about a potentially mis sold ppi. before this i had no idea about PPI being a major issue but i do recall at the time being pressured into taking out after initially refusing it.

do you think this letter is a way of them panicking about a potential claim and should i just follow the MSE guide to claim or contact them direct. im worried if i call them direct i will just get fobbed off.

also i saw an advert for money boomerang and filled in an initial claim on their site, are they just jumping on the bandwagon , because they ask for an initial £10 cheque to review the claim plus 25% of the end payout if successful!?!?

Hi there

And welcome to this thread.;)

I would personally check out information on here with Martin's useful guidelines of reclaiming, and of course if you were mis sold and successful, you will receive all of the PPi and interest of what is owed to you.

Some banks are also sending out questionaires.

Check this link here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

You will find useful info and advice on the above link and a checklist of mis selling reasons, also template letters, you can use the templates if you want to or just as a guide with your own words, and of course reasons that occur to you.
You do not have to write the amounts down on the letter, and they have 8 weeks to respond in full.

Post by recorded delivery.

If this does not go in your favour, sometimes they give you the opportunity to write back to them again with further information, so basically keep at them until they either resolve or until they issue you with the final decision, which should enclose details of the financial ombudsman service (FOS), you can take your complaint to them if your not happy who again is a free service.

Good luck with this and any further help, please just ask.;)

jonwayne01

thanks for the advice,

i used mse to reclaim £600 in bank charges so i know its tried and trusted :j.

di3004

jonwayne01 wrote: »

thanks for the advice,

i used mse to reclaim £600 in bank charges so i know its tried and trusted :j.

Your welcome and good luck.;)

jonwayne01

hi, had my first reply from A+L today. heers basically what it says:

"having considered the available info, we have not been able to establish whether you wer eprovided with sufficient details to allow you to make an informed decision when this policy was taken out. we would like to offer £348.51 as a refund, including interest, of all the premiums paid for the PPI element of the loan."

is this right as they have calculated it from when the loan started (apr08) to present, on a monthly basis? i got the impression that it was added as a lump sum on the loan and that was paid off, as well as interest before any capital was paid off the loan?

any advice what to do next???!!?

di3004

jonwayne01 wrote: »

hi, had my first reply from A+L today. heers basically what it says:

"having considered the available info, we have not been able to establish whether you wer eprovided with sufficient details to allow you to make an informed decision when this policy was taken out. we would like to offer £348.51 as a refund, including interest, of all the premiums paid for the PPI element of the loan."

is this right as they have calculated it from when the loan started (apr08) to present, on a monthly basis? i got the impression that it was added as a lump sum on the loan and that was paid off, as well as interest before any capital was paid off the loan?

any advice what to do next???!!?

Hi there
Thanks for posting on this.;)

I would check to see what the amounts originally are on this by requesting they send you a full detailed written breakdown, its always best to double check if your unsure.
As banks can vary in how they work these out.

It may be correct, and they should post these calculations/breakdown out to you if you request for these.

However, well done to you.
:beer::T:beer:

jonwayne01

that was a quick response!

i have just found the first letter they sent me asking to contact them if i felt i was mis sold. on the key ponts of the ppi, point 2 says :

Your optional PPI was paid for by a single one off payment (the premium) that was added at the outset to the amount you borrowed. interest is charged on this for the term of your loan at the same rate of interest as the loan.

i have done a rough calculation that it should be about £1200 plus the 8% so around the £1300 mark

BUT

on the original loan agreement it shows a breakdown of the monthly cost and the ppi is payable over the 60months of the loan @£19 a month which adds up to the £328.78 + 8% they offered me

PaulinWeston

Hi jonwayne

First thing I'd add to Di's post is that you don't have to go to an organisation that want to charge you 25% ... there are plenty of people on here that have successfully done it themselves using the template letters etc.

You "might" find that you're in a very advantageous position actually - because there are a heck of alot of companies who have applied a one off payment for PPI onto a loan - and then failed to declare it correctly on the actual loan agreement.

Notwithstanding the fact that it might have been mis-sold in the first place - it then depends how they have declared it on the loan agreement ("amount of credit" vs. "total charge for credit" etc. - it's all gobbledygook to me ..). It's a real legal minefield (unless you understand the Consumer Credit Agreement - which I don't!!))... It "may" mean that you actually have a claim to have the whole agreement declared 'unenforceable' (which could mean that you could be entitled to all the interest paid - not just the PPI ...PLUS the 8%!).

So - it may be - that A&L are offering you a "full & final settlement" in the hope that you don't discover the mistake ....... OR it may be that A&L are doing the very decent thing of treating you fairly and offering you compensation....

I guess the decision is up to you .... if you don't want the hassle you could accept the offer (in which case - well done!) or, you could do some more digging to see what you can find out.....

Just as a thought ... "if" the amount of interest on le loan/card plus PPI is over £5,000... then a solicitor could help you on a no win - no fee basis (called a Conditional Fee Agreement ... they get all their costs from A&L).. (it shouldn't cost you anything to ask them if you have a claim - and then you'll know one way or the other) .

I'm really not sure if you could go to the Ombudsman, without knowing exactly where you stand (because I don't think they're allowed to give you legal advice as such) - but I'm sure someone will be along to soon to offer you some (more) advice...

Hope this helps

melorablack

jonwayne01 wrote: »

that was a quick response!

i have just found the first letter they sent me asking to contact them if i felt i was mis sold. on the key ponts of the ppi, point 2 says :

Your optional PPI was paid for by a single one off payment (the premium) that was added at the outset to the amount you borrowed. interest is charged on this for the term of your loan at the same rate of interest as the loan.

i have done a rough calculation that it should be about £1200 plus the 8% so around the £1300 mark

BUT

on the original loan agreement it shows a breakdown of the monthly cost and the ppi is payable over the 60months of the loan @£19 a month which adds up to the £328.78 + 8% they offered me

Yes it is added to the beginning of the loan as a lump sum but that is only so they can charge you interest on it. The PPI is paid off like the loan - bit by bit throughout the term of the loan.