MSE News: FSA to re-open 185,000 rejected debt insurance claims

ghawn

Hi there,
We keep phoning the MBNA on our PPI claim and either it goes to answerphone or they hang up on us. The FO have told them that they must pay up as we were missold the PPI but this has now been going on 4 2 years and we can't quite see light at the end of the tunnel. I hope this is just down to volume of complaints and that it has not come to an end after 2 years of waiting. Wish us luck!!!!

marshallka wrote: »

Wow, and this was for credit cards as well and all the work of the FSA had focused on was to do with unsecured loans and they are redressing and now opening credit cards too. This was not due to start yet but so pleased for you. This is fab news. Just hope that the secured loans ones do it also... Great news and what a surprise for you.:T:T:T:T

marshallka

And I did get a sort of copy of what the Ombudsman wrote to Lloyds. They actually just resent on the FP complaint by the looks of things

Please find enclosed details of a complaint enquiry we have been asked to consider in respect of the named policyholders. The complaint concerns the level of rebate received on the policy on settling the loan early. The policyholders believe that the level of rebate provided was unfair and would like the issue investigated further.

The enclosed information includes a completed complaint form, and the relevant policy documents confirming Lloyds Syndicate 7** and 5** to be part of the consortium of insurers who underwrite the policy.

We ask that you review the enclosed, and in accordance with your internal complaints handling procedures, contact the policyholders to address the complaint.

We will take no further action on this enquiry unless prompted to do so by the policyholders further to the conclusion of your internal complaints handling procedure. However, we have advised the policyholders that we have asked you investigate the complaint. You should therefore treat this as notification of the complaint enquiry.

I trust this enquiry is in order, however, please contact us should you need to discuss the matter further.

Yours sincerely

marshallka

ghawn wrote: »

Hi there,
We keep phoning the MBNA on our PPI claim and either it goes to answerphone or they hang up on us. The FO have told them that they must pay up as we were missold the PPI but this has now been going on 4 2 years and we can't quite see light at the end of the tunnel. I hope this is just down to volume of complaints and that it has not come to an end after 2 years of waiting. Wish us luck!!!!

:eek::eek::eek:So you won through FOS and they still after two years have not paid up. Have you been back to FOS with it? Have you been in touch with the FSA or let them know of your treatment? This is disgusting.

di3004

I hope it works out for you now Marshallka I really do.

If in the worst case scenario, in regards of the underwriters/insurers, could you turn this around for a mis selling complaint, if that did fail, as I take it this was also mis sold anyway in the first place?

So Lloyds are the underwriters are they?
Sorry Marshallka I'm all head shot again now....:o

di3004

ghawn wrote: »

Hi there,
We keep phoning the MBNA on our PPI claim and either it goes to answerphone or they hang up on us. The FO have told them that they must pay up as we were missold the PPI but this has now been going on 4 2 years and we can't quite see light at the end of the tunnel. I hope this is just down to volume of complaints and that it has not come to an end after 2 years of waiting. Wish us luck!!!!

Hi Ghawn,

blimey your still waiting after all that time?:eek:
I agree with Marshallka, get in touch with the FSA on this one.

Wishing you luck.;)

marshallka

di3004 wrote: »

I hope it works out for you now Marshallka I really do.

If in the worst case scenario, in regards of the underwriters/insurers, could you turn this around for a mis selling complaint, if that did fail, as I take it this was also mis sold anyway in the first place?

So Lloyds are the underwriters are they?
Sorry Marshallka I'm all head shot again now....:o

I was just showing you how the ombudsman have worded the complaint and they state "underwriters" . I don't know TBH about where this is going or if it goes anywhere. They asked me last week and said they had reviewed my file going back to when I first complained to FOS and tried to make FP responsible for the sale. They told me that they could not hold FP responsible for ANYTHING here and that if i wanted to go for the missell then it was a chance. I don't want to go for the missell and am happy with the rebate complaint as that is what I have complained about. I am !!!!ed off TBH as this is not much money (the rebate one) and Lloyds have now had another letter off me jogging their memory yesterday to see if we can resolve soon. I shall just have to wait for FOS but nothing stopping me trying myself. I doubt they will respond.

The rebate complaints are Premium (and not interest) as the interest if not anything to do with the actual policy related. This means that you work out how much of the premium is unused and then how much you actually paid to them of the unused bit and take off whatever they rebated of it. You then should be entitled to 78% of that amount but remember this does not take into account interest. That then would be classed as fair. Say your policy was £5K (without interest) over a 5 year period and you had it running for 3 years. That would be using 36 months of it and then you got a rebate of £100. You have been charged the remaining 2 years left on it less £100 which is unfair really. You should at least be entitled (to be fair) to a rebate of 78% of the remaining two years (keeping 22% back for admin) so you should actually be entitled to £1482 (less what they have paid to you) which would be much fairer. That is my understanding of these things but time will tell.

marshallka

Mine rebate

4163 over 60 months = 69.38 a month
69.38 x 39 months we had the loan = 2705.82
Unused PPI was 1457.18 but got a rebate of £90
1457.18 x 78% (fair rebate) = 1136.60 – 90 rebate actually received = £1046.60 which is what I am due back for an UNFAIR rebate complaint.

Di rebate

2835 0ver 60 months = 47.25 a month
47.25 x 14 = 661.50
Unused PPI was 2173.50
2173.50 x 78% (fair rebate) = 1695.33 – 1533.69 rebate actually received = £161.64 which is what you would be due back for an UNFAIR rebate complaint.

This is why I was trying to make a point that some firms say they use the rule of 78 in calculating but they do calculate it correct. FP however do not and that is the difference. My co-op complaints used rule 78 but they did not keep it all back just like yours did not. I would definately make the misselling complaint with yours Di. I know they probably used the rule of 78 in the loan (like FP did with mine too and charged me another over 4K cause of that) but they WERE allowed and its only "challengable" in courts. I did not understand how these rebate complaints actually worked when I put in my complaint to FOS but just knew that we were unfair rebated by the above. Now I asked FOS if they include the interest in the PPI in a calculation if they do uphold and his reply was "but that is the agreement you are on about and not the policy of PPI". I take it from that they do not. They class the PPI interest as loan interest I think as you had a loan to pay for a premium. If they do all well and good which then counteracts the rule 78 in the loan but doubtful as the insurer and rebate would only really be responsible for the PPI premium cost. You do have to prove the rebate was unfair though.

di3004

I agree Marshallka by looking at your calcs, this would be a wiser move for me on the mis selling side of it, which is what I originally was going for, fingers crossed.;)

di3004

marshallka wrote: »

That is why I kept on so much about your rebate not being unfair. I did not think it unfair although your loan settlement would have been slightly higher but if you had actually had the £5K back using Tiggraes method of calcuation then you would have been paid to have the loan and also if you used m colaks too you again would have been paid for the loan. I hope now (and I bet you don't either and you think I am being horridand I am not:o) you can see what I meant when I said months ago. I was only being truthful Di. I am just glad you can now go for the misselling after all this time.

lmao of course I don't think your being horrid Marshallka lol :rotfl::rotfl::rotfl:,I rather know and would feel rather silly if to have gone ahead now with the unfair rebate side of things......:o,but yes your right, going to give it my damn best shot on the mis selling, cheers Marshallka and I have appreciated your help on this. Cheers.:beer:
And wishing you lots of luck on yours as well.:A

marshallka

di3004 wrote: »

lmao of course I don't think your being horrid Marshallka lol :rotfl::rotfl::rotfl:,I rather know and would feel rather silly if to have gone ahead now with the unfair rebate side of things......:o,but yes your right, going to give it my damn best shot on the mis selling, cheers Marshallka and I have appreciated your help on this. Cheers.:beer:
And wishing you lots of luck on yours as well.:A

Di waiiiiitttttt, just looked again. Your settlement should have been without PPI according to rule 78 £21756.60 but you paid them 23646.04 with PPI so BECAUSE of PPI being added they charged you with interest that is £1889.44. This means their figures are out somewhere if they DID rebate you the shown figure. God this one does my head in... I wish tiggrae would do some calculations on it for you now she is back. We could see then for sure.

Now do just the PPI on rule 78 and it works that you should have paid back 2928.16 (that is with interest now) but they say they refunded you £1533.69 so they were "allowed to charge" 1394.47 but they actually charged you £1889.44. Were their any charges on this one for settling? A difference of near on £500

Or doing the two with rule of 78 it works out you should have settled 24684.76 but take off this rebate of £1533.69 and it works out £23151.07 which looks about right EXCEPT for this extra £500 again..... this £500 keeps cropping up.