What if you were missold PPI BUT you've claimed more than you've paid??

Beewee_2

Hi Money Savers

I have a question regarding my claim for compensation with Tesco Bank.

They have agreed that the PPI was missold, but say that because they paid out once when I was ill and those payments total more than I have paid to date in installments, I am not due any compensation.

Is this correct??? It still doesn't change the fact that they conned me into paying for insurance which I didn't need.

Regards
Beewee:mad:

di3004

Beewee wrote: »

Hi Money Savers

I have a question regarding my claim for compensation with Tesco Bank.

They have agreed that the PPI was missold, but say that because they paid out once when I was ill and those payments total more than I have paid to date in installments, I am not due any compensation.

Is this correct??? It still doesn't change the fact that they conned me into paying for insurance which I didn't need.

Regards
Beewee:mad:

Hi there

Do you know how much you paid of ppi into the account and how many months you claimed for?
I would ask them to send you a written breakdown and with dates of when they did pay into the claim.

marshallka

Was this PPI on a loan and if it was, is it still running? If that is the case then usually they pay over to you the PPI (plus the interest) that you have made so far within your repayments and the rest is taken off the remaining balance on the loan. This can sometimes mean that you only receive a small amount (if the loan has not been running for long) but your balance is reduced and repayments lower to reflect the remaining PPI taken off.

Beewee_2

Thanks for your replies.

I cancelled the PPI in December 2010 just before I put in the claim for missold insurance.

I took out a loan with Tesco Bank in 2006 and they told me that the PPI was not optional if I wanted the loan and also I had a pre-existing medical condition and generous sick pay from my employer.

I made a claim in 2008 and they paid out £1400.

Between March 2006 and December 2010, they say, I paid £1350 in premiums.

I must admit, I still have to check that their figures are correct, but it sounds about right. They admit that they missold the insurance on the loan, but will not pay back the installments I have paid, because it is less than they paid out when I claimed on the insurance.

dunstonh

Is this correct??? It still doesn't change the fact that they conned me into paying for insurance which I didn't need.

You are complaining that the policy was mis-sold and therefore should be voided and your premiums returned plus interest.

Tesco have agreed with you. However, at some point you made a claim on the policy. So, to put you in the position you should be to agree with your complaint, they should ask you for all the money back they paid up during the claim and they will refund your premiums.

However, that doesnt happen. Thanks to the FSA they just say the redress payment should have the amount of any claim made deducted from it and if there is any shortfall, you dont have to pay it back and you dont get any of the premium back.

I cant see why you are disappointed with that as you are in a financially better position because of the mis-sale.

I took out a loan with Tesco Bank in 2006 and they told me that the PPI was not optional if I wanted the loan and also I had a pre-existing medical condition and generous sick pay from my employer.

1 - what evidence did you have that you were told it was not optional.
2 - pre-exisiting conditions dont matter as you are covered in unrelated areas and your claim proves that.
3 - so what if you get generous sick pay from the employer. The PPI still paid out.

So, whilst you were successful, perhaps Tesco only upheld your complaint because they know they didnt have to pay out a penny anyway so no point arguing the case.

roonaldo

Beewee wrote: »

It still doesn't change the fact that they conned me into paying for insurance which I didn't need.

Are you serious? you obviously did need it as you claimed quite a bit of money on it!!

You are not financially worse off for taking it. Time to drop it.

marshallka

Was this a single premium PPI? If it was how much was it and when you cancelled the PPI how much was rebated? If it was a single premium it would have had interest on it which was payable over the full term of the loan and the rebate on cancelling would only be on the actual premium and not the interest charged on it.

Common_Sense_2

Beewee wrote: »

they paid out once when I was ill

they conned me into paying for insurance which I didn't need.

surely these two statements contradict each other????

prowla

This thread is a joke, right?

marshallka

Even on the FSA 10/12 policy statement it says about single premiums and still being able to complain it was missold even if the consumer has made a claim. The thing with single premiums is that sometimes a consumer would want a PPI but not one that incurs interest. The OP has been told that they have claimed more than the premium is but is that the actual cost of the premium being the premium PLUS the interest charged in it? It says in the 10/12 policy statement

[FONT=TimesNewRoman,Bold]Example 5 The complainant would have purchased an alternative regular[/FONT]
[FONT=TimesNewRoman,Bold]premium PPI policy at the outset. The loan and the PPI policy are[/FONT]
[FONT=TimesNewRoman,Bold]live, and the complainant has previously successfully claimed on[/FONT]

[FONT=TimesNewRoman,Bold]the single premium PPI policy.[/FONT]

As described in DISP App 3.7.3E and DISP App 3.7.10E, the firm should pay to the
complainant a sum equal to the total amount the complainant paid for the PPI
including historic interest where relevant (plus simple interest on that amount) less the
amount the complainant would have paid for the alternative regular premium PPI
policy.
In this example, this is the sum of the complainant’s PPI policy payments made via the
loan repayments less the price of the alternative regular premium PPI policy. The
simple interest is calculated on the difference between the actual PPI policy price and
the alternative policy price for each payment made by the complainant outside the
claim period, from the time each actual PPI payment was made to the time the
compensation is paid.
The firm may deduct from the compensation an amount equivalent to those regular
premiums paid during the claim period. This is because under the terms of an
alternative regular premium product, the premiums would still have been payable by

the complainant during the claim period.


Some policies in total (including interest that is) cost more than what you would be able to claim in total.

The_Loan_Ranger

Beewee wrote: »

Hi Money Savers

I have a question regarding my claim for compensation with Tesco Bank.

They have agreed that the PPI was missold, but say that because they paid out once when I was ill and those payments total more than I have paid to date in installments, I am not due any compensation.

Is this correct??? It still doesn't change the fact that they conned me into paying for insurance which I didn't need.

Regards
Beewee:mad:

It's just this kind of 'sponging' that is causing the mountain of spurious claims being looked at by FOS; 'Should be with an Adjudicator in about six months or so' - how the hell can you justify trying to ponce money back with respect to a product which has proven its worth, and how can you claim 'mis-selling' when you've utilised to good effect and it no doubt helped you out no end when it was needed.

SHAME ON YOU