PPI Claim

jenjen60

Hi, please help! Received news that my PPI claim was approved, but the charge fees are madness, 39% the company is requesting, I am not getting the refund but the bank has agreed to pay the mount to my loan, now the company is requesting this payment from me, but they knew I did not have the cash available for this payment, please can I get some advice on what to do?

dunstonh

Received news that my PPI claim was approved, but the charge fees are madness, 39% the company is requesting,

So, why did you agree to use a company that charged so much?

I am not getting the refund but the bank has agreed to pay the mount to my loan,

Which is a very common redress method and allowable.

now the company is requesting this payment from me

This is one of the major risks when using a claims company. We often state that warning on these forums.

The bottom line is that you agreed to use a claims company and their charging structure. They have done what they said they would do and are entitled to be paid. If you dont pay then expect them to take you to court. They rarely let it go.

The best you can hope for is to either increase your loan to pay their charges (sort of defeats the purpose) or see if you can negotiate a monthly payment scheme with them.

jenjen60

When I agreed to go through with this claim, they told me they will take the claim monies from the refund, but it is being paid off my loan and I cannot afford this payment as I do not earn a huge salary, the company knew the loan was still being paid off, so there is no way I can even negotiate with them, I feel they should a advised me of fee amount before telling me what was due to me, then I could have decided whether to carry on with this claim or not?

dunstonh

When I agreed to go through with this claim, they told me they will take the claim monies from the refund

Unfortunatly, claims companies are not very well regulated. Its less regulation, more that they promise to act professionally. This is one of the risk areas that claims companies are weak at letting you know. Mainly because if you did know, you wouldnt use them.

I feel they should a advised me of fee amount before telling me what was due to me, then I could have decided whether to carry on with this claim or not?

Problem is that claims companies are typically very good at making their contracts watertight. Unless you negotiate a monthly payment with them, then expect them to follow up with legal action.

UK007BullDog

What do you mean the money is paid directly to you? Or are you in arrears and the money is paid towards the loan directly?

If the money is paid directly to you then you can pay the complaints company?!?

jenjen60

I am not in arrears with the loan, must the bank then pay the money over to me, yes then I can pay the Claims Advisory Group, but as I am new to this, where would I stand in asking Santander for the monies due?

amersall

jenjen60 wrote: »

I am not in arrears with the loan, must the bank then pay the money over to me, yes then I can pay the Claims Advisory Group, but as I am new to this, where would I stand in asking Santander for the monies due?

Hi there, if you are not in arrears you must phone santander and put the point across that the win of mis sell should not be taken to reduce the loan balance as you have no arrears, also, if you had not had ppi on the loan then you would have had this money, it should not now be taken off the loan as this is money that should be yours.

Check that the total ppi payment has been taken off the loan and your monthly payment has been reduced by the ppi amount.
Stand your ground with this.

dunstonh

You can ask them to pay the money to you. Some will. However, at the end of the day, if they insist it goes off the loan then they are entitled to do it that way.

src007

jenjen60 wrote: »

I am not in arrears with the loan, must the bank then pay the money over to me

The Financial Ombudsman Service take the view that where someone is up to date with the loan payments, the refund should go to the consumer directly, so amersall is correct.

Its usually Santander's policy to follow the FOS's guidance, so you should get back the payment's made to date (into your account) and the PPI completely removed going forward (removed from the loan).

I suspect Santander would only use the refund to reduce the loan for:

1) future PPI payment's you've not yet made (some claims companies charge a % of this!)

or,

2) If you're in a DMP / payment plan (even if up to date).

magpiecottage

amersall wrote: »

if you are not in arrears you must phone santander and put the point across that the win of mis sell should not be taken to reduce the loan balance as you have no arrears, also, if you had not had ppi on the loan then you would have had this money, it should not now be taken off the loan as this is money that should be yours.

That won't work if it is a single premium policy as they will be reversing the loan taken out for the cover.

It might be possible to argue that the interest paid on the loan for the cover should be paid cash but I doubt you could force them to pay the capital as cash.


You could look here to see if the CMC has breached the MOJ rules but that is all.

I am afraid it looks as though you have been taken for a sucker twice. Try not to let it happen again but don't let it make you as cynical as some posters on this forum are either - life's too short.

amersall

magpiecottage wrote: »

That won't work if it is a single premium policy as they will be reversing the loan taken out for the cover.

It might be possible to argue that the interest paid on the loan for the cover should be paid cash but I doubt you could force them to pay the capital as cash.


You could look here to see if the CMC has breached the MOJ rules but that is all.

I am afraid it looks as though you have been taken for a sucker twice. Try not to let it happen again but don't let it make you as cynical as some posters on this forum are either - life's too short.

I understand what you are saying with front loaded ppi .
My ppi was front loaded with FP. The loan was reset and all interest on premiums paid to date were returned to me with the 8%.
I did not get the capital back though.
I would assume that this would be the case for op?.
I think it would certainly be worth asking santander, nothing to lose by asking?.