Blackhorse - Be Careful

PPAC

We as a company recieved in the region of 100 final responses from blackhorse this morning 89 of these advised that they were upholding the complaint on the following basis - goes on to say having investigated the complaint they feel as though the only thing they felt was sold incorrectly was the fact that no pro- rata settlement was given at the time of clearing the loan so they would refund the difference from what they had taken at time of settlement and what was actually paid for at the time of clearing the loan. These letters aren't very clear and i would assume consumers could be easily confused with thinking it would be a full refund of all premiums as this offer includes the 8%, Also a fair few of these offers have got 3 or more agreements on the one offer and they offer the full redress of ppi premiums paid on one loan and the other 2 or 3 only a pro rata rebate but to accept the full refund on the one loan you need to sign acceptance form accepting the other 2 which only offer the pro rata rebate we have had numerous calls from consumers today to ask whether or not to accept these offers as they don't understand what is being offered. We also recieved 6 or 7 straight rejects from Blackhorse advising that the policy was not mis sold and it was just a standard letter the other couple were upheld before the Judicial review our uphold rate with Blackhorse was about 90% now its down to about 10% in one day. I'm not sure what Blackhorse are playing at because both LLoyds and HBOS seem to be getting there act together but it seems like Blackhorse are seemingly trying to pull the wool over there customers eyes and i could almost guarantee people will be signing offer letters and don't know what they are signing for and could leave them thousands of pounds out of pocket - Consumers Beware Another RIP OFF BY BLACKHORSE

magpiecottage

CMC person unable to use paragraphs to put their (not there!) argument coherently.

This is the sort of thing I have to deal with regularly.

Anyway, reading between the lines, it looks as though what he is saying is that BH has said it does not believe the policies were missold but they should have given a pro-rata refund on early cancellation. They have calculated that and will add 8% per annum interest.

This is in accordance with an agreement between the FSA and insurers (not intermediaries) that a pro rata refund would be issued in such circumstances.

Where this approach goes wrong is that you only get a refund if the premium was paid up front, in which case it was almost certainly added to the loan, which it should not have been.

So the OP's point, now I have teased it out, is correct.

You should NOT be accepting such an offer because it is clearly unfair. If his firm puts 89 such complaints to FOS they will probably report it to the FSA once they start upholding them!

PPAC

Just a quick update to this post i have spoken to Blackhorse this morning in regards to the offers which include the full refund plus 8% on one of the agreements and pro rata refunds on the other couple but with only one acceptance to sign, If the client doesn't accept the offer from Blackhorse then all 3 of the agreements has to be taken to the FOS they are not getting dealt with individually and you can't accept one without accepting the others.ABSOLUTELY SHOCKING!

richie007

I have had 3 loans with BH one in 2003/4/5. All of the loans had the premiums added upfront. One which was for a car loan also had something called Vehicle replacment protection. This was added to the cost of the car and then added to the cost of the insurance premium which was paid upfron. What I am finding strange is there is no mention of the cost of this VRP policy on the loan agreement.

tifosi

Quite clearly, BH are attempting to abuse the system by putting themselves in the position that they can state to FOS/FSA they have "dealt with the complaints by the 31st August"

However, in reality they are using smoke and mirrors in an attempt to get people to sign for less than they are entitled to.

This situation is no doubt replicating en masse at CMC's up and down the country and their complaints ought to go in bulk to the FSA, not FOS as clear evidence of BH abusing the given process