Blackhorse PPI Claim

hoppogroove

Hi,
Please could some of the wiser people pass suggestions on this?
I recieved a letter from Blackhorse today (Exactly 16 weeks since they acknowledged my initial letter back at the end of May) -Funny That!
It seems like the usual kind of fob off letter which given many recent posts regarding Blackhorse I was kind of expecting.
In short, they have told me they look at 3 things
1) My eligability for the policy.
2) Whether the policy was suitable for you
3) Whether they provided appropriate information when I took it out.

They also go on to say ask if they acted fairly towards me in relation to the sale of the PPI.

It goes on to say...
"As a result of this review, I am satisfied that the only issue that arose with the sale of the PPI attached to your personal loan was that if your single premium policy was cancelled early you would not receive a pro rata refund because of the way that we calculate the cancellation of the PPI policy.

Our Offer
Your PPI policy is currently live. If you require the PPI either now or in the future we are prepared to cancel the policy and provide you with a pro-rata rebate. We have had no specific instruction to cancel your policy at this stage so it will remain live unless you ask us to cancel it.
You should note that if you decide to cancel the policy, this would mean that any outstanding balance held on your account would no longer be protected... Once the PPI policy is cancelled any monthly payments would be you responsibility to maintain."

{LOL Here- whose responsibility where the repayments in the first placeA if not mine!!!}

It goes on to give advice about should I wish to cancel the policy...Number to call...They would then provide me with a pro rata refund- meaning they remove the cost of the PPI policy from now until the end of my loan (Probably about 2 years left of a 5 year term) and my monthly installments will reduce to the loan amount only.


What are your thoughts please guys?

My initial thoughts are Fob off- They in essence are not going to give me all of the cost of the premium for PPI back (Which I didn't want or need or have never claimed from).
When I consider that it would have been added to the amount at the start of the loan and then charged interest upon I'm kind of thinking that I should not accept this and go to the FOS instead?

All help and comments gratefully received.

di3004

Hi there

Hopefully someone will have some answers on this for you, but if you do not agree with the decision, ask if they will consider reviewing with further information, give them 14 days and tell them if you hear nothing or if they do not change the decision you will take the matter further.

With a bit of luck maybe someone who have dealt with these directly will post up soon, good luck.

src007

hoppogroove wrote: »

It goes on to say...
"As a result of this review, I am satisfied that the only issue that arose with the sale of the PPI attached to your personal loan was that if your single premium policy was cancelled early you would not receive a pro rata refund because of the way that we calculate the cancellation of the PPI policy.

Our Offer
Your PPI policy is currently live. If you require the PPI either now or in the future we are prepared to cancel the policy and provide you with a pro-rata rebate. We have had no specific instruction to cancel your policy at this stage so it will remain live unless you ask us to cancel it.
You should note that if you decide to cancel the policy, this would mean that any outstanding balance held on your account would no longer be protected... Once the PPI policy is cancelled any monthly payments would be you responsibility to maintain."

It goes on to give advice about should I wish to cancel the policy...Number to call...They would then provide me with a pro rata refund- meaning they remove the cost of the PPI policy from now until the end of my loan (Probably about 2 years left of a 5 year term) and my monthly installments will reduce to the loan amount only.

What are your thoughts please guys?.

Its just a trick from Blackhorse to get you to end the complaint.

They say the ONLY issue is the unfair (non-pro-rata) cancellation rebate. That issue is usually enough on its own to win the complaint!

Where the unfair rebate hasn't been explained (and the consumer was likely to settle early) the FOS believe the consumer would never have entered the PPI contract. The consumer should be due a full refund with 8% compensation interest, as well as a full cancellation.

If you've settled loans early before or if it was a long term loan, you would almost certainly win at FOS.

The FOS usually frown upon such offers because nowhere in their guidance or the FSA's guidance do they (or the FSA) recommend the solution that Blackhorse are offering to end your PPI complaint.

Whilst you should consider how strong your case is (as its at least a possibilty that FOS could reject) most Blackhorse PPI is pretty terrible and the FOS are likely to take a dim view of the firms response, so most people would continue onto the FOS to try and get the full amount back.

src007

Does the letter give you 6 months to got to the Financial Ombudsman Service?

Did they enclose an acceptance slip for the cancellation?

amersall

Tell them to get lost,you have valid reasons for mis sell with this one,frontloaded ppi is the worst of the lot,you dont want a pro rata rebate,this will amount to diddly squat,the ppi will still be on the loan and you will be paying the interest associated with this,get back to them and tell them you dont accept the offer and you believe you were mis sold this ppi and if they dont take another look at this you will take this to FOS,they uphold most of these frontloaded ppi claims.

magpiecottage

i suggest you make a complaint to FOS.

They will force Black Horse to give you the correct redress and will also report to the FSA if they find this behaviour is occurring regularly.

hoppogroove

Hi- Many thanks to you guys for your well informed advice. Its appreciated.

It was kind of along the same lines as I was thinking but just wasn't confident - The replies have given me that reassurance- thankyou.
The letter does specify a timeframe of 6 months to complain to the FOS and includes an information leaflet for the FOS (Very kind!).

In terms of Next steps, Firstly do you think it is even worth going back to Blackhorse (either phoning or in writing?)- I'm leaning towards not bothering here as the case worker seems to have made her position clear? Would my reply in declining their offer have the necassary clout to get them to change their Point of view (Unlikely?)

Secondly, what is the next step in terms of the FOS complaint? I presume there will be the relevant links/ downloadable stuff on their website. Just follow these?

Finally, again just to clarify, would one of the PPI reclaim companies have any more success than I've had so far/ or in going to the FOS or would they just be doing the same thing and charging me loads to do it? - I have seen nothing but horror stories about these companies here so guess absolutely not !!

Thanks again to all.

Hoppo

amersall

If it wasnt the final response,write back to them and tell them you want them to look at this again and tell them you will escalate to the FOS.
If it was the final response send a letter to FOS.
This is the same letter that you will have filled in when you put the initial claim in,dont forget to put a copy of the response you got from BH too.

If you are unable to fill the form in and walk to the post office,then by all means use a claims company,i am sure they will have someone available to do this for you.:rotfl:

hoppogroove

Many thanks for those motivational words Amersall
I will get onto it forthwith!!

amersall

:D Good luck with this and please keep us posted x.

di3004

Good luck from me too.

Its known depending on what further info you have, they may decide to change the decision, give them a timescale say of about 14 days to reconsider, if the decision is unchanged or if you hear nothing further, then move on to the FOS to complaint, good luck.;)