GE Home Finance - MPPI Court ot Not?

ianhillwoodville

Hi all,

Thanks for your advice recently. OK have lodged a complaint with GE about PPI. As it was executed under deed I presume it was a mortgage rather than secured loan.

Quick summary. Lump sum PPI added to loan interest charged and so on. Settled after two years under Rule of 78 and refund of about 25% of premium.

Additionally sickness cover was six months full pay and six months half pay, with statutory provision for redundancy payments.

Big issue loan was drawn down in Oct 2004 - oh to have waited three months!

Anyway honest assessment please:

1) From experience is there any chance they will accept the claim? My suspicion is no which means I go to County Court I suspect but any glimmer of hope would be nice.

2) Again from experience is there any point in pursuing through the Court. From what I have read FLA are not of particular value and GE as I understand it were not members of the GICS(?????).

With that in mind does anyone have a draft set of evidence for PPI in county court? Not looking to blag completely but to get a flavour of the case that can be made. That is if anyone can tell me if anyone has ever succeeded with this type of case.

Thanks very much

roonaldo

People do succeed with PPI in court but most fail I believe, you will need evidence, evidence of every allegation of why it was mis-sold. You have a bit of work to do, as you said you are unsure whether its for a mortgage or a secured loan.

You might want to dig out all your paperwork and have a read through all the documents.

I expect someone will comment who has been through the courts.

ianhillwoodville

Thanks Roonaldo. Am guessing that it's probably best to leave. Who knows maybe, just maybe, they will at least make an offer. Now what makes me doubt that..... Thanks again

roonaldo

they wont make any offer, its their get out of jail free card as the sale isnt under any regulation or jurisdiction. it doesnt mean its right though.

it might be worth getting copies of all the sales documents and see if you can persue it another way and try FLA incase.

ianhillwoodville

Thanks I did guess as much. Have seen much talk about FOS chasing the underwriters/insurers too. Anything anyone knows on that???

marshallka

So what makes the difference between a secured loan and a mortgage? I have always wondered this?

marshallka

ianhillwoodville wrote: »

Thanks I did guess as much. Have seen much talk about FOS chasing the underwriters/insurers too. Anything anyone knows on that???

FOS are accepting complaints against insurers/underwriters BUT no-one has really posted back any real feedback as such.

How much was the loan for?

roonaldo

marshallka wrote: »

So what makes the difference between a secured loan and a mortgage? I have always wondered this?

Mortgage is always first charge and secured loan is second charge. Solicitors are not necessary in secured loans. Essentially its the same thing, a loan secured on property.

magpiecottage

marshallka wrote: »

So what makes the difference between a secured loan and a mortgage? I have always wondered this?

Mortgage literally means "Death Payment" but in the context of what you are asking, it means the loan which was used to purchase the property (or to replace the loan used to purchase the property in the case of a remortgage) plus any further amounts borrowed on that account.

A secured loan is any other loan which must be repaid with the proceeds of sale of the property. They are sometimes called second mortgages.

The potential consequence of failing to keep up repayments on either is the lender getting the borrower evicted and selling their home to get their money back - so it is security for the lender, not the borrower.

The borrower's position is actually LESS secure because they could find themselves homeless and MPPI is therefore appropriate in principle although clearly adding a single premium to a loan is likely not to be cost effective and purchases need to know what they will and will not be able to claim for in order to make an informed decision whether to pay the premium or take a chance.

magpiecottage

marshallka wrote: »

FOS are accepting complaints against insurers/underwriters BUT no-one has really posted back any real feedback as such.

Although complaints are being accepted, it does not necessarily mean they are going to be upheld.

Adjudicators are paid a fee to "resolve" cases. Accepting the case then rejecting it means they get the fee but deciding at outset there is no case to answer means they don't.

The insurer gets stung for a fee of £500 when this happens, like it or not.

It seems to operate rather like a car clamping scam.

roonaldo

magpiecottage wrote: »

Adjudicators are paid a fee to "resolve" cases. Accepting the case then rejecting it means they get the fee but deciding at outset there is no case to answer means they don't.

They dont do this on PPI complaints, most of the adjudicators are contractors but on a daily rate (I was there last year), FOS did get in a load of contractors from Hazel Carr who did banking complaints on a fee basis but that was scrapped last year.

There is a strict checking process on the PPI response letters, so letters dont go out with wrong decisions on.