Black Horse PPI Claim help!!

gratook

Hi Everyone

I would be very grateful for any help and advice anyone could give me.

In May 2007 I took out a personal loan with Black Horse for 4500 pounds, I went into a local branch office and dealt with a member of staff directly.

The loan was offered over 60 months for 119.14 per month, which given my poor credit rating seemed reasonable. However, I cannot remember a conversation taking place about PPI although I cannot say for sure that it wasn't mentioned. My monthly repayments for almost the last 3 years have been 159.52 which includes 40.38 for the payment protection plan.

I have requested and just received a copy of the agreement (I mislaid the original) and noticed that the PPI appears on the agreement in the form of a separate loan for 1524.93 with the total amount payable for this portion of the loan being 2422.80 the APR being 21.9% (same as the actual loan). The problem is that I had ticked the box to say 'I wish to purchase Optional payment protection plan' and signed beneath.

I'm not sure this cover would be any use as I get paid for 12months if I'm off sick and I honestly don't remember the member of staff making it clear that this was optional, also I cannot recall ever having received a policy!.............do I have a case for complaint?

Regards

Graham

di3004

gratook wrote: »

Hi Everyone

I would be very grateful for any help and advice anyone could give me.

In May 2007 I took out a personal loan with Black Horse for 4500 pounds, I went into a local branch office and dealt with a member of staff directly.

The loan was offered over 60 months for 119.14 per month, which given my poor credit rating seemed reasonable. However, I cannot remember a conversation taking place about PPI although I cannot say for sure that it wasn't mentioned. My monthly repayments for almost the last 3 years have been 159.52 which includes 40.38 for the payment protection plan.

I have requested and just received a copy of the agreement (I mislaid the original) and noticed that the PPI appears on the agreement in the form of a separate loan for 1524.93 with the total amount payable for this portion of the loan being 2422.80 the APR being 21.9% (same as the actual loan). The problem is that I had ticked the box to say 'I wish to purchase Optional payment protection plan' and signed beneath.

I'm not sure this cover would be any use as I get paid for 12months if I'm off sick and I honestly don't remember the member of staff making it clear that this was optional, also I cannot recall ever having received a policy!.............do I have a case for complaint?

Regards

Graham

Hi and welcome Graham.

I would check here on the link for more information, with the guidelines of reclaiming, even though we all have to sign agreements before the loans go ahead, you may still have reasons to reclaim, so the link you should find useful.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Many of them write back stating "because you signed blah blah blah you must have been aware" but not to worry, as there are still loads of reasons that may apply to you, so do check the information on the above link, and take it from there if you want to.

Post up for help when required, good luck.;)

gratook

Thank you for the quick reply.

I have checked the advice given on the link and I do feel that I have a case, but at the very least I hope I am able to cancel this insurance and save 40 pounds per month for the remaining two years of the loan!

I noticed that when the lender sent my copy of the agreement, they only gave me page 1 of 4, although this is the signed bit, I wonder if the other 3 pages contain the conditions of the cover?
Regards

Graham

di3004

gratook wrote: »

Thank you for the quick reply.

I have checked the advice given on the link and I do feel that I have a case, but at the very least I hope I am able to cancel this insurance and save 40 pounds per month for the remaining two years of the loan!

I noticed that when the lender sent my copy of the agreement, they only gave me page 1 of 4, although this is the signed bit, I wonder if the other 3 pages contain the conditions of the cover?
Regards

Graham

Hi Graham

Then its worth a shot then, they should be able to cancel but every bank vary in how they do this, but at the end of the day you have your reasons to reclaim, so give it a go.
If you do require further paperwork and they do not provide this free to you, then you can "if you want to" is request for a Subject Access Request (SAR), they have 40 days to comply and send all they hold on you, but there is a cost of £10 for this request payable by postal order or cheque payment, post by recorded delivery to ensure it reaches them.

SAR letter template here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553

However, just as long though as you have the account number details and your reasons to reclaim then that is fine.

Hope this helps, give us a yell for further help if required.:)

Di

marshallka

gratook wrote: »

Thank you for the quick reply.

I have checked the advice given on the link and I do feel that I have a case, but at the very least I hope I am able to cancel this insurance and save 40 pounds per month for the remaining two years of the loan!

I noticed that when the lender sent my copy of the agreement, they only gave me page 1 of 4, although this is the signed bit, I wonder if the other 3 pages contain the conditions of the cover?
Regards

Graham

Hi Graham, if you only cancel the PPI just be aware that it does not mean your repayments will reduce by the amount you are actually paying for the PPI at the moment as the PPI is actually an upfront payment if single premium and would have interest on it over the term of your loan and also is actually another loan. When you cancel you would receive a rebate usually (against the loan) and then a new loan is drawn up to reflect this and you would still pay the interest on the PPI if you see what I mean. Good luck in your misselling complaint.

gratook

Thanks again for the advice,

Would it be worth speaking to the lender on the telephone first and ask them if they will cancel/refund the PPI just to get an idea of their viewpoint? Or should I just write to the head office to complain about the miss-selling?

tiggrae

gratook wrote: »

Thanks again for the advice,

Would it be worth speaking to the lender on the telephone first and ask them if they will cancel/refund the PPI just to get an idea of their viewpoint? Or should I just write to the head office to complain about the miss-selling?

even if you cancelled the policy at this point it's unlikely your monthly premiums will be reduced as you'll find you'll already have paid for the PPI - this is called front end loading - all your monthly premiums will have gone to pay for the PPI instead of the loan - so get straight on with the mis selling claim as it's the only way to reduced your monthly premiums and get back what you've paid to date

gratook

Far be it for me to question you on this, as you clearly know your stuff, but according to the agreement the PPI part of the loan states that the repayment are for 60 months @ 40.38 per month! Surely if they have taken more than this, they have not adhered to the agreement?

maxdp

They have not been taking more than this what is meant is that because the PPI was added to the loan when you took it out it is front loaded. When you pay your loan and PPI of each month at the start of the loan more of the payment is used to settle the PPI. They get that paid off first before you actually start paying the loan off. So after a year of paying your loan if you went to settle you would find that you probably owe more than you borrowed.

gratook

I see, damn these people are legalized thieves!!

I will put my initial letter regarding miss selling in the post tomorrow, watch this space I guess:)

di3004

gratook wrote: »

I see, damn these people are legalized thieves!!

I will put my initial letter regarding miss selling in the post tomorrow, watch this space I guess:)

Good for you :T:T
Good luck, if you can though post by recorded delivery, you can then track down the delivery on the Royal mail website and keep a check on the timescale they have, fingers crossed.:beer: