Help, AA Creditcare - Can I reclaim

kd811

Hi,

hoping one of the experts out there can help me, or my sister to be more exact.

She took out a loan in May 2008 through the AA. When she rang for the loan they took her financial details, time at a address etc and then asked her if she had any savings and did she have any alternative cover should she have an accident. She mentioned that she received sick cover from work at this point.
They recommended that she take the creditcare which covers Life insurance, CIC, Accident and sickness, unemployment and carer cover.

They quoted monthy figures of £305 including PPI cover, they didn't at this point give the split of loan and insurance. She doesn't remember evr being told what the loan repayments would be without the PPI.

They then couriered the loan agreement to her for sign, the courier waited while she signed it and then handed over the cheque.

Due to a change in personal circumstances it is now time for her to complete a financial review and upon checking the loan paperwork it is apparent that she has been sold a single premium policy which wasn't explained at the time.

We have checked the policy booklet to see if she can cancel the cover but the book states that on a 5year term loan that has been running for more than 3 years she is only entitled to 15% refund.

The customer copy of the Agreement shows the following:
Amount of credit (the cash loan)£12000
amount of credit (the insurance loan) £3303.36
Total amount of credit (the total loan) £15,303,36
Duration of the agreement
Total amount you pay for cash loan £14,327.40
Total amount you pay for the insurance loan £3,943.80
Total amount payable £18,271.20

Whilst she can't remember them saying she couldn't have the loan without PPI, the checklist that came with the agreement states "it is important that you sign this box if you have taken insurance otherwise we cannot process your agreement" so she felt that she had to take it at this point (she was only 21 at the time)

Can you tell me whether we are able to claim for misold PPI, surelyshe should be able to cancel and get a pro-rata refund at the least.

The policy is underwritten by St andrew's insurance plc, has anyone had any success with this company.

Thanks in advance
kelly

di3004

kd811 wrote: »

Hi,

hoping one of the experts out there can help me, or my sister to be more exact.

She took out a loan in May 2008 through the AA. When she rang for the loan they took her financial details, time at a address etc and then asked her if she had any savings and did she have any alternative cover should she have an accident. She mentioned that she received sick cover from work at this point.
They recommended that she take the creditcare which covers Life insurance, CIC, Accident and sickness, unemployment and carer cover.

They quoted monthy figures of £305 including PPI cover, they didn't at this point give the split of loan and insurance. She doesn't remember evr being told what the loan repayments would be without the PPI.

They then couriered the loan agreement to her for sign, the courier waited while she signed it and then handed over the cheque.

Due to a change in personal circumstances it is now time for her to complete a financial review and upon checking the loan paperwork it is apparent that she has been sold a single premium policy which wasn't explained at the time.

We have checked the policy booklet to see if she can cancel the cover but the book states that on a 5year term loan that has been running for more than 3 years she is only entitled to 15% refund.

The customer copy of the Agreement shows the following:
Amount of credit (the cash loan)£12000
amount of credit (the insurance loan) £3303.36
Total amount of credit (the total loan) £15,303,36
Duration of the agreement
Total amount you pay for cash loan £14,327.40
Total amount you pay for the insurance loan £3,943.80
Total amount payable £18,271.20

Whilst she can't remember them saying she couldn't have the loan without PPI, the checklist that came with the agreement states "it is important that you sign this box if you have taken insurance otherwise we cannot process your agreement" so she felt that she had to take it at this point (she was only 21 at the time)

Can you tell me whether we are able to claim for misold PPI, surelyshe should be able to cancel and get a pro-rata refund at the least.

The policy is underwritten by St andrew's insurance plc, has anyone had any success with this company.

Thanks in advance
kelly

Hi Kelly

Whoever sold and set up the policy are the ones responsible, so its them your sister would have to pursue to make a reclaim. So if the AA set this up its them then and not the insurer.

To do this, there is a questionnaire that replaced the template letter on this site, complete and sent to the head office of the complaints dept if they have one of these, keep copies as well just in case it has to be referred back to at some point.
Eight weeks is the normal timescale for a decision to be made, but its possibly they may ask for more time.

Your sister should be able to cancel at any time, some wait until the case is resolved, so once this is done the repayments should drop as well, but its up to her if she wants to cancel first or see what happens with the complaint, where if successful should refund all that have been paid of ppi back to her, plus interest.

The questionnaire - stage one here.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim

Hope this helps, good luck.:)

amersall

Hi kelly DO NOT CANCEL THIS INSURANCE. Wait to see if you win mis sell, as if you cancel, a new loan will have to be taken out without ppi and this will extend the loan term and give higher apr.

kd811

completing the form now, fingers crossed

amersall

kd811 wrote: »

completing the form now, fingers crossed

Everything crossed xxxxxxxx

di3004

Me too, good luck.;)