Single Premium ppi help

dunstonh

Dunstonh, I don't quite understand that one? What do you mean about interest etc. Can you explain cause I thought that all single premiums had interest charged on them regardless. They are all loans aren't they to pay the insurer up front and being a loan from the first repayment you make they incur interest.

Not all single premium gets interest added to it. Often it may look like single premium on the statement or redemption statement but that doesnt mean interest is being charged on the PPI element.

e.g. They have the amount borrowed + the interest on that amount + the cost of PPI over the term = balance. - thats ok - they are just front loading to calculate the monthly payment over the term

e.g. They have the amount borrowed + the cost of PPI over the term + the interest on those two = balance - thats not ok - in this case they are adding interest to the PPI as well

dixidean

well mine is your second point dunston amount borrowed + cost of ppi over the term + the interest on those two = balance
so could i claim a miss sell here on those grounds?

dunstonh

dixidean wrote: »

well mine is your second point dunston amount borrowed + cost of ppi over the term + the interest on those two = balance
so could i claim a miss sell here on those grounds?

Thats the most common type that people are complaining about so go for it. Being charged interest on a PPI premium is not considered a good thing generally.

dimwitt

Hi,
I have a similar complaint with NR. They have already offered to refund all the premiums plus 8% interest.
But the reason they gave for offering this was " We are not satisfied that our sale of PPI met our standards of service"
The policy agreement is for a 10K unsecured personal loan and an additional loan with which NR purchased 'life cover only' from Cardif Pinnacle. The policy is in the name of NR, and I had never set eyes on it before I requested a copy 3 years after I signed for the loan.
When I asked NR about the policy they gave this reply.

" We have no obligation to disclose any information to you about the commision received by Northern Rock from Cardif Pinnacle. However, I can confirm that Northern Rock acted as an intermediary selling Cardif Pinnacles policy. To clarify, the insurance policy is held with Cardif Pinnacle however the sale of that policy was conducted by Northern Rock.

Main Loan + Interest / Loan for PPI + Interest

I have looked at the CCA and my policy agreement, and I believe that there are several breaches in the contract.

The thing I am currently researching is a statement on the policy under the heading.

Important - Read this carefully to find out about your rights.

...... 2) If you received unsatisfactory goods or services paid for under this agreement, APART FROM ANY BOUGHT WITH A CASH LOAN, you may have a right to sue the supplier, the creditor or both

I'll help out if I can.

amersall

dimwitt wrote: »

Hi,
I have a similar complaint with NR. They have already offered to refund all the premiums plus 8% interest.
But the reason they gave for offering this was " We are not satisfied that our sale of PPI met our standards of service"
The policy agreement is for a 10K unsecured personal loan and an additional loan with which NR purchased 'life cover only' from Cardif Pinnacle. The policy is in the name of NR, and I had never set eyes on it before I requested a copy 3 years after I signed for the loan.
When I asked NR about the policy they gave this reply.

" We have no obligation to disclose any information to you about the commision received by Northern Rock from Cardif Pinnacle. However, I can confirm that Northern Rock acted as an intermediary selling Cardif Pinnacles policy. To clarify, the insurance policy is held with Cardif Pinnacle however the sale of that policy was conducted by Northern Rock.

Main Loan + Interest / Loan for PPI + Interest

I have looked at the CCA and my policy agreement, and I believe that there are several breaches in the contract.

The thing I am currently researching is a statement on the policy under the heading.

Important - Read this carefully to find out about your rights.

...... 2) If you received unsatisfactory goods or services paid for under this agreement, APART FROM ANY BOUGHT WITH A CASH LOAN, you may have a right to sue the supplier, the creditor or both

I'll help out if I can.

I dont understand what you mean by your last paragraph. Was the loan used to buy goods or services, and you have received unsatisfactory goods or services?. And what are the breaches in the contract?.

amersall

dixidean wrote: »

well mine is your second point dunston amount borrowed + cost of ppi over the term + the interest on those two = balance
so could i claim a miss sell here on those grounds?

As dunstonh says "go for it". You have a good chance here with this being front loaded. Good luck and let us know how you get on x.

dixidean

Hi dimwitt, first of all congrats on your full refund and thanks for your offer of help. Our policies are very similar and i sent my letter off only last tuesday.

Couple of questions if you dont mind?

Ive claimed miss-sell on the grounds that it wasnt explained to me that interest from the policy premium would be added to my debt and attract interest, and also that i wasnt informed that i could purchase ppi from an alternative provider. What did you claim on? and was this refund offered straight away after one letter?

Again thanks and good luck

dunstonh

Ive claimed miss-sell on the grounds that it wasnt explained to me that interest from the policy premium would be added to my debt and attract interest, and also that i wasnt informed that i could purchase ppi from an alternative provider. What did you claim on? and was this refund offered straight away after one letter?

Interest charged on PPI is bad and a valid complaint. There is no requirement for them to tell you that you can buy PPI from an alternative provider.

dimwitt

dixidean wrote: »

Hi dimwitt, first of all congrats on your full refund and thanks for your offer of help. Our policies are very similar and i sent my letter off only last tuesday.

Couple of questions if you dont mind?

Ive claimed miss-sell on the grounds that it wasnt explained to me that interest from the policy premium would be added to my debt and attract interest, and also that i wasnt informed that i could purchase ppi from an alternative provider. What did you claim on? and was this refund offered straight away after one letter?

Again thanks and good luck

Hi Dixidean,
Mine was because they recommended their 'bronze' cover to protect my monthly payments. However, 'bronze' cover is a life insurance only.

Also they said that their agent failed to establish whether I already had life insurance cover, and this is ONE of the resons they believed that they did not meet their standards of service in the sale of PPI.

In your case I think that they have failed in their Duty of Care under the CCA by not properly disclosing the true nature and cost in the sale of PPI. This may also be covered by the Financial Services and Marketing act 2000.

dimwitt

amersall wrote: »

I dont understand what you mean by your last paragraph. Was the loan used to buy goods or services, and you have received unsatisfactory goods or services?. And what are the breaches in the contract?.

Hi Amersall,
Yes thats correct.
I took out an unsecured personal loan. Alongside this loan was another loan which was specifically to be used to purchase PPI.
The money for this other loan never came into my possession as it was used by NR to purchase an insurance policy from CP.
However, interest was applied to this other loan at the same interest rate as the main loan.
The insurance policy they purchased has NR as the policy holder.

This means that the loan was used to buy goods or services and as NR have all but admitted that they mis-sold the policy, then I believe that I have a claim.

With regard to the breaches in the contract, the above would be one of them, but also there is the innapropriate execution of the agreement. Because the PPI was mentioned in the agreement, and I was never served with a copy of the policy until I requested it, 3 years after I signed the agreement.

There is no description of the goods supplied on the CCA agreement

There is no cancellation rights notice on the agreement.

The agreement does not embody all the terms of the agreement.

And there is that statement I referred to at the end of my first post
which I am looking into at the moment.