PPI claim for past secured loan

Bob_II

I wonder if someone in the know could help me with regards to assessing whether I have a claim for miss-sold PPI?
In 2002 I suffered from a period of severe depression and during that time was unable to work (unemployed). Now, me being me, I felt obliged to look after myself (financially) instead of the state doing it for me. At the time all I had was equity in my property so the only option for additional income during the 9 months I was not working was a secured loan. I was rejected for a couple of personal loans and so felt that the secured loan on offer was my only option and I was somewhat desperate for the financial security. The loan terms included PPI which I did not want or ask for. I have never had PPI on anything prior, or since, as I've always been of the opinion that the policies are not worth the paper they are printed on (how right was I it seems now).

The problem I have though is that this loan was 11 years ago now and I’m not sure if I have the grounds to make a claim. I read that due to being unemployed at the time that I should have been advised PPI may not be a good idea for me to pay for. I’ve also read conflicting reports that the “time-limit” for claims is 6 years, but then others have said 10 years and some say 12 years, particularly for mortgages and secured loans. Does anyone know the true figure? And, am I wasting my time pursuing this?

A secondary problem is that I have since destroyed the paperwork and am not even sure of whom the lender was! I have a closed account in my Microsoft Money program for a secured loan which says First National Bank, but I vaguely recall all the paperwork being from Legal & General. Does anyone know if these two were/are in any way affiliated with each other? Then again, if the answer to the first question is “don’t bother wasting your time, you don’t have a leg to stand on” then I guess it doesn’t matter now.

I’d greatly appreciate any help/advice. Any compensation during these financially challenging times could have major implications for me!

Bob

the_knitting_drummer

Bob_II wrote: »

I wonder if someone in the know could help me with regards to assessing whether I have a claim for miss-sold PPI?
In 2002 I suffered from a period of severe depression and during that time was unable to work (unemployed). Now, me being me, I felt obliged to look after myself (financially) instead of the state doing it for me. At the time all I had was equity in my property so the only option for additional income during the 9 months I was not working was a secured loan. I was rejected for a couple of personal loans and so felt that the secured loan on offer was my only option and I was somewhat desperate for the financial security. The loan terms included PPI which I did not want or ask for. I have never had PPI on anything prior, or since, as I've always been of the opinion that the policies are not worth the paper they are printed on (how right was I it seems now).

The problem I have though is that this loan was 11 years ago now and I’m not sure if I have the grounds to make a claim. I read that due to being unemployed at the time that I should have been advised PPI may not be a good idea for me to pay for. I’ve also read conflicting reports that the “time-limit” for claims is 6 years, but then others have said 10 years and some say 12 years, particularly for mortgages and secured loans. Does anyone know the true figure? And, am I wasting my time pursuing this?

A secondary problem is that I have since destroyed the paperwork and am not even sure of whom the lender was! I have a closed account in my Microsoft Money program for a secured loan which says First National Bank, but I vaguely recall all the paperwork being from Legal & General. Does anyone know if these two were/are in any way affiliated with each other? Then again, if the answer to the first question is “don’t bother wasting your time, you don’t have a leg to stand on” then I guess it doesn’t matter now.

I’d greatly appreciate any help/advice. Any compensation during these financially challenging times could have major implications for me!

Bob

There is a holy trinity involved, when it comes to the mystical art of mis-selling PPI - the broker, the lender and the underwriter.

The first is the company who conducted the sale, the second is who provided the finance, and the third is the insurance company.

It is the broker that were responsible for the sale of PPI, so it is to them that you need to direct your complaint. In your case it sounds as though First National were the lender and Legal & General were the underwriter. But who were the broker?

It may be irrelevant, because the sale was almost certainly unregulated. The timeframes you mention and request clarification on vary from case to case, as different companies were covered by different regulations at different times.

Based on the balance of probabilities, I would hazard a guess that yours was an unregulated sale .

magpiecottage

11 years ago would predate the GISC code, I think. That means you will only be able to take the matter to FOS if the firm was a member of one of its predecessor ombudsman schemes at the time.

The broker would normally be expected to answer the complaint but almost certainly was not. First National, similarly, I do not think was.

Legal & General complaints for general insurance would normally have gone to the Insurance Ombudsman but it simply carried out the instructions it received to provide the insurance and had no obligation to ensure it was suitable - so it has no case to answer.

WombleSW20_2

I'm pretty sure First National wasn't a GISC member but I'm sure that they have not been in partnership with Legal & General. At that time they would have been with Cardif Pinnacle.

the_knitting_drummer

magpiecottage wrote: »

11 years ago would predate the GISC code, I think.

I believe GISC landed in the year 2000, which would make it 11 years ago.

(I worked this out by doing 2011 - 2000 = 11, please feel free to check my workings)

Bob_II

Yes, well done, you spotted the obvious mistake. It was indeed only 9 years ago as the loan was in 2002.

I think, by the sounds of what you well-informed people are telling me is, that I may have to write this off and put it down to experience. The added problem I have is that the loan was paid off early after only 11 months (hence the number 11 confusion in my OP). So I doubt they're obliged to keep a record of my account since it was 8 years ago when it was closed. Maybe I wrong?

Either way I think I was "clutching at straws", so to speak, believing I may be able to get the money back. Watching Martin Lewis' video from 2007 it would appear that I was a victim of the PPI scam whereby the value of the PPI was added to the loan at the start of the term and when I paid it off early I was charged for all of the PPI.

Details:
Loan £20,000
Term (uncertain, possibly 5 years)
APR 11.4%
PPI cost around £4500
Month payments were £327
Paid off early after 11 payments of £327 and had to pay £23,000+
(Including of course, those evil early redemption penalties)

Well, my advice to anyone following this experience (apart from never trust banks/insurance companies to offer sound advice) is, never take on any financial commitments out of desperation.

Thanks to all who commented.

Bob_II

CORRECTION

I'm sorry guys, my mind has been working overtime on this and I've remembered that the paperwork for my loan was NOT from Legal & General, it was in fact GE Capital. I had a L&G life insurance policy around that time and this must have been what I recalled earlier. I remembered GE Capital as soon as I saw their logo today.

Don't know whether that changes anything though. The only evidence I have of First National Bank's involvement is that I named the account in my Microsoft Money file as that.

Apologies for the misinformation and just to re-iterate the point in earlier post, the loan was taken 9 years ago and paid off early 8 years ago.

Bob_II

For the benefit of anyone who finds this topic and wonders how things turned out, or have similar questions; I have started a claim against Cardiff Pinnacle who where the underwriters of the PPI insurance sold to me by a broker (Click Finance/1 Click Loans Ltd). The broker dissolved in 2006 so the FOS suggested complaining to the insurer. GE Money (not GE Capital as previously stated) were fantastically helpful, much to my surprise. I guess they knew they were not liable for anything so had nothing to gain by being obstructive. They found in their archives and forwarded me copies of my original agreement, and full account statements for the duration of the loan, free of charge! I could not have asked for more from GE Money.

jamkaw

How did this end up?

Im in similar situation now. Secured loan from black horse finance, then ge paperwork i think. Loan settled when i sold my house. Mist be approx 9 years ago that took out te policy.

-taff

as of their last post in 2012, they haven't successfully complained yet.

Ge were not the seller, black horse were. If they don't uphold, adnthe FOS don't uphold, your chacnes are practically zero of getting GE to cough up, because they didn't sell it to you.

Bob_II

Unfortunately FOS didn't uphold my complaint. Not happy about it but I can't be bothered to appeal. They basically sat on the case for nearly 2 years then ignored all the evidence I'd sent them with my original complaint, asked me a couple of questions via email and made their decision based on my replies. Total waste of time, I'm sad to say. Time though, not money, so still worth pursuing. You never know your luck!