should we accept offer?

zoopants

Hi

Hoping someone can help us here,

Black Horse finally got back to us after sending a petter of complaint.

The offered us £1200.00 even though on our loan agreement, the ppi cost was just unde £14,000.00.
What they have said is, that coz we had 2 previous loans with them albeit it all paid in full, that the 3rd loan we was claiming back on, they said the had taken into account previous loans and roll overs on ppi's and that the offer was a fair one?

Anyone any ideas if that how it works? We paid the loan in full, and looking at the agreement the final settlement figure included the total cost of the ppi? Are they just trying to get out of paying, this has been going on since May now

Hope this makes sense

Thanks

src007

zoopants wrote: »

Hi

Hoping someone can help us here,

Black Horse finally got back to us after sending a petter of complaint.

The offered us £1200.00 even though on our loan agreement, the ppi cost was just unde £14,000.00.
What they have said is, that coz we had 2 previous loans with them albeit it all paid in full, that the 3rd loan we was claiming back on, they said the had taken into account previous loans and roll overs on ppi's and that the offer was a fair one?

Anyone any ideas if that how it works? We paid the loan in full, and looking at the agreement the final settlement figure included the total cost of the ppi? Are they just trying to get out of paying, this has been going on since May now

Hope this makes sense

Thanks

You need to look carefully at the offer as it might be fair, it might not be.

If the loan was settled early on you wouldn't have paid anywhere close to the full £14,000 for PPI. £1200 as a figure for what you paid, is certainly possible.

Usually if it says in the letter that the offer is in line with the Financial Ombudsman Service guidelines and includes an 8% interest figure, it will be a fair amount. They may also say that they're putting you in the position you would have been in, had you not taken PPI

If it says that they're offering a 'pro rata rebate' then the offer is alot lower than it should be.

It sounds like you may have had more than one loan with PPI? Is the offer just a refund of the PPI on one loan? It might help if you write some of the wording of the letter on here?

zoopants

they do mention a pro rata rebate

will get the letter and copy it, will be tomorrow now though
We have had 3 loans with them, but not all at same time, and we had never mentioned claiming for others as they were over 6yrs old

zoopants

This is what they have sent us, at the end is an acceptance form which has to be signed., there is also an example of how it would be worked out.. Sorry for length of it but wanted to put as much as I could. Can we get a final offer without having to sign the acceptance form as I feel by us signing it they could just send us peanuts:(

I am writing to you today in relation to your complaint about your Payment Protection Insurance (PPI) policy. I am sorry this situation has occurred and I appreciate you taking the time to bring this to our attention. I have now completed an investigation into the circumstances of your complaint, and as a result I have decided to uphold your complaint on the following basis.

Our Assessment
As part of an initial review of our records, I was able to identify that the PPI policy you complained about was associated with a loan which was part of a chain of 3 loans with us where these loans were settled early and refinanced by a subsequent loan.

In assessing your complaint, I have fully considered whether you were eligible for the policy, whether the policy was suitable for you and whether we provided appropriate information to you in relation to your PPI policy when you took it out. Having completed all of these steps, I also looked to ensure that we noted fairly towards you in relation to the sale of your PPI policy, taking into account any other relevant circumstances or information that may be available.

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 when your single premium policy was cancelled early you would have incurred additional cost at the time that you closed the account. This is because you would not have received pro rata refund because of the way that we calculate the settlement of the PPI policy. In addition, as you did not receive a pro rata refund, your borrowing for the subsequent loans would have been higher than you needed it to be. This in turn increased the size and monthly payments and in doing so attracted additional interest.

Our Offer
I have therefore decided that you should be reimbursed the difference between a pro rata refund and the amount you actually paid for each single premium policy settled early. I have also considered (and included) the additional amounts you have paid due to your refinanced loans being greater than what you would have required, and the interest applicable to this.
As our final response, we would like to offer you a refund of this excess amount, plus simple interest at 8% per annum.

Redress Due To You
To help illustrate how our offer will be calculated we attach an appendix to this letter providing 3 worked examples. Once your client’s signed acceptance is received we will write to you and them to confirm the exact amount of the final payment amount, a breakdown of the calculation and when the payment has been made. In the meantime we set out below the basis on which the payment will be made.
Our proposed payment will consist of:
Refund Due, including Excess Payment and Interest
Interest at 8%, calculated up until payment made*

*The interest will be calculated at 8% simple on the amount due from the date that we received the payment to the date we pay the redress.
We will provide details showing the breakdown of the payment by each individual loan.

src007

Basically there were two costs for the PPI:

1) The monthly cost whilst the PPI was running.

2) An additional charge, when you settled the loan early.

Blackhorse are ONLY refunding 2) and NOT 1).

Do you know the monthly cost of the PPI and how many month you were paying before the loan was settled? If you still have the credit agreement (what you signed when you took the loan) there will be a monthly figure quoted for the PPI.

If you had PPI with the other loans its very likely they were also mis-sold. I would put in complaints about PPI you had with any other Blackhorse loans. You could say:

- You were sold inflexible policies with unfair rebate terms despite your history of early settlement. -

They knew you were incurring massive penalty costs for the insurance each time you settled early however they kept on selling those policies to you. This is one of the strongest reasons you can have for mis-selling.

There is no time limit for complaints however it is difficult to complain against Blackhorse for policies sold between mid 2003 and 2005.

The Financial Ombudsman Service wouldn't agree with what Blackhorse are doing because if the policies were mis-sold you should be due a FULL refund of EVERYTHING you paid with interest, not just the early settlement cost.

Taking the complaint to the Financial Ombudsman Service (FOS) is really easy. The forms are available somewhere on the this site!

If I was in your shoes I would certainly reject the offer and go to the FOS. Only if you're in real need of the £1200 soon is it best to accept because there can be massive dealys at the FOS.

The FOS currently have a backlog of 70,000 PPI complaints!

src007

When was the policy sold? Do they mention the Financial Ombudsman Service at the bottom of the letter?

magpiecottage

They seem to be deliberately misleading you. They know FOS will disagree. I would suggest you write back for the personal attention of Mrs Alison Hewitt, Compliance Officer, and ask her why she is allowing her staff to treat you unfairly by ignoring the FSA rules under section DISP App 3 of its handbook.

If you do not get a satisfactory answer, go to FOS and include a copy of that letter as well.