Paragon Personal Finance

Calnefoxile

Team,

We've been talking about trying to claim tour PPI back for ages, well anyway, after being messed about by a Claims company, we decided to go on our own.

I have a copy of the Agreement with Paragon, basically it says:

Your Loan and Repayment Terms
A. Cash Loan Amount - £38000
B. PPI Premium - £12160
C. Total Credit - £50160
D. Monthly Rate of Interest - 0.716%
E. APR - 8.9%
F. Anticipated number of Monthly repayments - 240

Your Insurance (In this section they explain the PPI)
1. Total amount of the premium for the cover is shown in B above
2. Premium is set out and will not vary or be reviewed during the 120 months period of cover.
3. Interest will be £13337.60 . Total price you will pay is £25497.60
4. Cover is optional and you are not required to purchase it as a condition of taking the cash loan.
5. We have Joint cover
6. You, the borrower, understand the T&C's

Now bearing in mind that this loan was signed by us on the 19/02/05 and Signed for and on behalf of Paragon Personal Finance Ltd on 22/02/05. The interest rate has actually INCREASED and we are paying more than quoted on the agreement.

So:

How do I start???
How much can I claim back from them??
We're not sure if we went direct to Paragon or via a broker. We can't remember.

Any help would be gratefully recieved and I will keep this Thread updated as we go.

TIA

Neal.

P.S. We're sure we only asked for £25,000. But can't remember.

di3004

Hi there

I'm sure someone will be along to check the calcs out for you shortly, but for now you do not require these to make a reclaim.

All you do is complete a reclaim questionnaire as on step 3 below, send to the ones responsible for selling and setting up your account, and send to them, keep copies in case you need to refer to it again later on.
They normally have 8 weeks, but the FSA have given more time due to backlogs, so if they need extra time, for example 12 weeks they will let you know on the acknowledgement letter.

Good luck.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

magpiecottage

The cost of the policy over the term does work out correctly.

They also state that it is 240 months and the policy runs for 120 months.

Although not bound by the Mortgage Code (which was defunct by 2005) it gave guidance on good practice for selling PPI which this seems to comply with - even though it is a single premium policy (the good practice guidance made clear that the total cost must be spelled out in order to comply.

However, responsibility for the sale rests with the firm that sold the policy. This may be a broker, rather than Paragon.

Calnefoxile

magpiecottage wrote: »

The cost of the policy over the term does work out correctly.

They also state that it is 240 months and the policy runs for 120 months.

Although not bound by the Mortgage Code (which was defunct by 2005) it gave guidance on good practice for selling PPI which this seems to comply with - even though it is a single premium policy (the good practice guidance made clear that the total cost must be spelled out in order to comply.

However, responsibility for the sale rests with the firm that sold the policy. This may be a broker, rather than Paragon.

Sorry I don't understand, so does this mean I can claim or not????

Regards

Neal.

Calnefoxile

magpiecottage wrote: »

The cost of the policy over the term does work out correctly.

They also state that it is 240 months and the policy runs for 120 months.

Although not bound by the Mortgage Code (which was defunct by 2005) it gave guidance on good practice for selling PPI which this seems to comply with - even though it is a single premium policy (the good practice guidance made clear that the total cost must be spelled out in order to comply.

However, responsibility for the sale rests with the firm that sold the policy. This may be a broker, rather than Paragon.

Magpiecottage,

I did ask this before, but I'll ask again.

I don't understand, does this mean I have a claim or not???

Many Regards

Neal.

magpiecottage

You can complain to whoever sold you the policy - but the information you have provided suggests that such rules as were in place at the time were complied with and therefore no missale took place (even if it would not have complied with the rules as they stand now.

magpiecottage

Having just taken a look at the FSA register, it seems that Paragon Personal Finance Limited is an Appointed Representative of Mortgage Trust Services PLC and has never been directly regulated by the FSA.

This in turn means that if you took the policy out on or after 14 January 2005, Mortgage Trust Services must deal with a complaint against Paragon about it. It also means if you took it out before then FOS has no jurisdiction.