FSCS - Compensation

busbyh

marshallka wrote: »

Was any demands and needs statement done?

none that I am aware of

busbyh

marshallka wrote: »

Taken it out of my quote too busbyh;)

Sorry marshallka, I got really confused there:o It was because I had just put a post through for honey2, I thought your were replying on that one:o:D

busbyh

marshallka wrote: »

If the sale was made without advice, the firm that sold the product should be able to demonstrate
through their records that the customer selected the product without any specific recommendation.

Does this mean it would go against the customer then

marshallka

busbyh wrote: »

Does this mean it would go against the customer then

I thought that if a sale was advised since the regulations of 2005 that a demands and needs statement needs to have been done. I don't know much about them but if the sale was advised there were rules and the provider will have had to have proved that for the sale to have been done right they actually went through these demands and needs at the time of sale.

I think if they did not do these and offered no advice and only sent the information to the customer prior to the loan advance then this would be classed as non advised. I think the non advised is when they can say that "we did not ask you anything cause it was a non advised sale" so we are safe. Not 100% but reading through the FSA/OFT etc these non advised sales need to clearer. I suppose if no advice was actually given they can argue it.

marshallka

If the sale was made with advice, the firm that sold the product should be able to demonstrate through
their records the reasons why the contract they recommended suited the customer’s demands and needs
at the time, and that this was made clear to the customer at the point of sale.
Demands and needs statements
When you arrange for a customer to enter into a non-investment insurance contract (including at
renewal), you should issue a demands and needs statement to your customer. The statement should:
• set out what the customer wants from the product (their demands and needs);
• confirm whether you personally recommended the contract;
• where a personal recommendation is made, it should explain the reasons for the recommendation;
• if no advice is being given, this should be clearly stated on the statement with a generic statement
confirming what the product selected will offer the customer; and
• the document should clearly reflect what was discussed.
It is important not to overcomplicate the letter or statement. Whatever level of service you offer your
customers, your documentation should be in plain language and clearly explain the level of service you
are providing.
The customer should be provided with information that enables them to understand:
• the type of product they have bought;
• whether they have received advice or are basing their purchase solely on their own interpretation of
the information with which they have been provided; and
• whether their individual needs and circumstances have been taken into account.

The rules of PPI sales since 2005 are here

http://www.which.co.uk/advice/how-to-tell-if-youve-been-mis-sold-ppi/rules-of-selling/index.jsp

Mammamia

honey2 wrote: »

Hi Pinknico

Apparently so, they are adamant that the advisor said nothing. I have not seen their claim form - My friend and I have had a look through their docs over the last day or so. They are just so distressed about this whole situation.
There is a booklet and letter that was sent to them prior to finalising the loan. It states any pre-existing conditions prior to taking out the loan will not be covered by the PPI. The accompanying letter pre dates the signing of the loan papers!!!!

They said the other item they put on their form was that the PPI was not for the full term but only for 5 years.
To be honest I think, they could have found it useful at the time of making a claim to the FSCS to get some more advise in completing the form. I think they were embarrassed to tell anyone even family!

Anyhoo this booklet actually does say the term of PPI however it does not say the 1st named applicant is the only person covered. I defo think they can ask for this claim to be re-loooked at.

Honey 2 xx

This is very similar to my case, my main points for claiming were that I had a pre-existing illness that wasn't discussed, the PPi was only for 5 years and that only I was covered and not my husband. I have won full compensation althoguh the reasons for comp were not stated

busbyh

marshallka wrote: »

If the sale was made with advice, the firm that sold the product should be able to demonstrate through
their records the reasons why the contract they recommended suited the customer’s demands and needs
at the time, and that this was made clear to the customer at the point of sale.
Demands and needs statements
When you arrange for a customer to enter into a non-investment insurance contract (including at
renewal), you should issue a demands and needs statement to your customer. The statement should:
• set out what the customer wants from the product (their demands and needs);
• confirm whether you personally recommended the contract;
• where a personal recommendation is made, it should explain the reasons for the recommendation;
• if no advice is being given, this should be clearly stated on the statement with a generic statement
confirming what the product selected will offer the customer; and
• the document should clearly reflect what was discussed.
It is important not to overcomplicate the letter or statement. Whatever level of service you offer your
customers, your documentation should be in plain language and clearly explain the level of service you
are providing.
The customer should be provided with information that enables them to understand:
• the type of product they have bought;
• whether they have received advice or are basing their purchase solely on their own interpretation of
the information with which they have been provided; and
• whether their individual needs and circumstances have been taken into account.

The rules of PPI sales since 2005 are here

http://www.which.co.uk/advice/how-to-tell-if-youve-been-mis-sold-ppi/rules-of-selling/index.jsp

marshallka,
you have been really busy again tonight. :A I have just been looking through the policy and it does mention about "your demands and needs" in part of it.
I will read it properly tomorrow as my eyes are too tired now.
Thanks for all your support:beer:
Just been reading the link you posted, it s excellent. According to this we all have a strong case. The part where it says "we strongly recommend you take on Insurance" is under pressure sales. They say this is then classed as an advised sale,therefore this has got to be good news for us.

Excellent link marshallka, just don't know where you find them all, put this one on a shortcut to desktop- really good to keep
Thanks
x

honey2_2

They took their loan out in June 06 and I took mine out in Nov 06.

I contacted Pict/Target a month ago for a settlement figure and it was more than the loan & PPI together - I have asked for a complete breakdown.

Did someone earlier say that they received a call from them recently advising that the monthly re-payment is due.
My OH got a call today advising that our monthly instalment is due - they have never done that before, it has been paid by DD since day 1.

Honey2

pinknico

"Apparently the recorded calls show that they were told by the person from Picture at point of selling that pre-exisitng conditions would not be covered, however they were not told that the policy was for only 5 years and not for the entire term of the loan. They have received a trans script of the calls from about 3 or 4 years ago"

Why was their claim not successful as the phone call doesnt mention the policy only lasts 5 years and they put that on their form, thats a massive mis sale! I think the FSCS has made a mistake.

My first loan was taken out in May 06 and was not given any information about the PPI except it being a type of saving scheme as I would get some back and no information was given on how much any of it would cost over the loan term.

The top up was taken out in Oct 07 but was also sold a brand new more expensive PPI policy and only given a part refund of the original one, there was demands and needs but was never made aware we could purchase from someone else or that there were many things that would never apply to us in the PPI because we were under 65!

chickpee

One of the issues we had with the sale of ppi with Picture was that we were only quoted the loan monthly repayment figure which included the ppi. At no point in the loan application process did they advise us of the repayment figure without ppi so they didn't give us a fair or informed choice with regards to taking it out.

I am just thinking that this might have been a common tactic with Picture so maybe it would be worth checking to see if your friends had a similar issue.