Nationwide rejection - next steps

FeeFee

Happy Xmas all!

I received a rejection letter from Nationwide on Xmas Eve (Bah humbug), and have drafted the following response - they have enclosed a direct dial number which I did try to call but I'm not sure if phone call/ letter or both is the best route to take...
I haven't requested an SAR; the first loan was arranged in branch, and this was then later restructured on the phone... your thoughts please??


I am writing in response to your letter dated 18/12/2009, received 24/12/2009, with regards the insurance sold with my loans.

I do not feel your letter has offered a satisfactory justification that my policy was sold fairly, reasonably and within my best interests so I request that you look into my complaint again. You state that the LoanCare policy was taken under an ‘information only’ process, and no advice or recommendations were made, which I refute. The first loan arrangement was carried out in branch and it was here that I was told that I would need insurance by a customer service adviser. I stated that I was in a secure job and unconcerned about becoming unemployed. I was then advised to consider the ‘peace of mind’ loan protection would give me. I agreed to the policy because I believed that your staff were acting in my best interests. This advice informed my agreement to further policies when re-structuring of the loan occurred at later dates.

I have attempted to call several times on the direct dial number provided, but have been advised by your automated systems that all staff are busy – please call back later.

If I do not receive a more favorable response within 14 days I shall be taking my complaint to the Financial Ombudsman, as I am confident they will rule in my favour.



Thoughts please?????????

dunstonh

Your response is flawed as it contradicts what you say. Look at it in bullet point form which is how the complaints team look at it when breaking down your letter.

1 - you said it was compulsary
2 - you said you didnt want it as you were in a secure job
3 - you said that the staff member told you do consider it for peace of mind
4 - you agreed to this

On that basis, it looks like it was sold correctly.

They can disregard what you say in point 1 as your response clearly shows that it wasn't sold as compulsory as you agreed to it for peace of mind. Anyone can claim anything was or was not said so they look at other evidence and your own words make it clear that it was not sold as compulsory.

They may have a copy of the phone call on the later loan. Have they made any reference to listening to that?

If I do not receive a more favorable response within 14 days I shall be taking my complaint to the Financial Ombudsman, as I am confident they will rule in my favour.

Based on how you have worded it, I would not be confident.

FeeFee

Thanks Dunstonh
I see your points.. what I want to say is that it was an advised sale at this point; "you'll need insurance..", not as they have stated in their response - no advice or recommendation was given..., that their CSA was unqualified to give this advice as I stated in my original complaint, and also that this product was not evaluated as being appropriate for me (my work T & C's would have covered me)
Can you help me to clarify?

Thanks

dunstonh

Most of the building societies or ex building societies have moved over to a non-advised sales process. This means that the person you speak with doesnt have to be qualified to give advice on it as they are not giving advice. It gives them protection from people complaining that advice was given. It also means that they do not have to check for eligibility as they are not giving advice. the onus is put on to you or your financial adviser if you use one. This is known more commonly as execution only or direct offer although the term "information only" is also becoming commonly used. Its where you buy the product with no advice given. Information can be given on it but they should not give advice. That can be a fine line. Information only requires no needs analysis, shortfall recommendations or eligibility check.

If at the time of sale, they had a no advice given policy then the qualifications of the person you spoke to are irrelevant as long as that person didnt give advice. The problem here is the lack of evidence (probably on both sides) as to whether advice was given or not.

In the real world, we know the bank staff often overstep the line and say things they shouldnt. However, proving it is a bit harder. It looks like Nationwide are basically saying that it was a non advised sale and this is our process and nothing you have said has given us reason to doubt that.

Effectively, you are deadlocked with your opinion and their opinion. If it goes to the FOS then the FOS will look at it and see the same as I am seeing here in that there is no evidence to support you and there is no evidence to support Nationwide (assumption as you havent mentioned any). They will have to make a balance of probability decision and they can really go either way.

FeeFee

Thanks dunstonh

Hmm I guess it really is a case of their word against mine then - I can think of no way to evidence the exchange that took place in the branch years ago. Unfortunately I was rather clueless (my first ever credit of any sort) and just took the word of the adviser as good. Do I put it down to experience or pursue further?

aberdon

definitely pursue further.I too had no evidence either just word of mouth.I tried to claim and my bank refused so i went to FOS.My reasoning is i had other loans prior to this 1 and also a mortgage with no PPIon any so why would i take it out with this 1 without beig told i had to.FOS decided in my favour and waiting on offer from my bank now.:jIt might help if your building society has a bad track record of PPI sales which you might find if you search the forum

FeeFee

Ok so I have taken some time to mull this over and have decided to pursue this for the simple reason that I genuinely believe I was mis-sold this policy, though my naivety may have to shoulder some of the blame along with the nationwide advisor. I have lost any confidence that I will win because of the valid points made by Dunstonh..., and though I have wracked my brains I can't think of a way to identify irrefutable evidence..


I am writing in response to your letter dated 18/12/2009, received 24/12/2009, with regards the insurance sold with my loans.


I do not feel your letter has offered a satisfactory justification that my policy was sold fairly, reasonably and within my best interests so I request that you look into my complaint again. Your letter states that the LoanCare policy was taken under an ‘information only’ process, and no advice or recommendations were made, which I refute. The first loan arrangement was carried out in branch in XXXX and it was here that I was told by the customer service adviser that I would need to have loan insurance, despite being in a secure job and not likely to become unemployed. This advice informed my agreement to further policies when re-structuring of the loan occurred at later dates.

I have attempted to call several times on the direct dial number provided, but have been advised by your automated systems that all staff are busy – please call back later.

If I do not receive a more favourable response within 14 days I shall be taking my complaint to the Financial Ombudsman.




This reads as weak to me now but I just wanted to run it past the forum peeps to spot any more glaring mistakes or for any further suggestions...

Thanks in advance FeeFee