funding corporation ppi complaint rejected!!

jimmy46

Hi everyone, wondered if anyone could give me some advise on what to do next (if i can!).
I sent a complaint letter to the funding corporation on 30th august, regarding ppi that i was missold in 2004, when i took out a loan for £8000, I was told I could not get my loan agreedwithout the PPI attached. the ppi was not made clear to me that it was optional. I paid this loan off early in feb/march 2006.
I received a response today.. this is the letter i received today:

Further to our letter, i have now investigated your complaint and confirm we do not uphold the allegations of mis - sale for the following reasons:

• you applied for a loan of £8000 on 30 june 2004 to consolidate existing debts. you were accepted for credit based on your application details and credit information.
• our representative then contacted you and advised you of your approval before disscusing the financial particulars of the agreement.
• we recomended you purchase Payment Protection Insurance (ppi) to protect your loan repayments in the absence of any esisting cover. You were provided with a quotation that suited your budget and included your insurance requirements, which you confirmed you were happy with. Documentation was despatched and included a PPI policy summary. You have signed the agreement confirming you wished to be bound to the terms.
• you were free to cancel the policy within 30 days of signing the agreement or receiving the policy documents (whichever is later) and would have received a full rebate of premiums.
• we can find no other reason to suggest the cover was mis-sold.

in view of the above, we are unable to offer you a refund of premiums.

you entered into the Credit Agreement on or around 5 july 2004. The basis of your claim is that you were mis-sold PPI on or around the same date. we consider that, as your policy was sold more than 6 years ago, under the Limitation Act 1980 you may be too late to make a claim against us. If you consider that this is not the case please let us know why.

In addition, due to the date that you were sold the PPI, your complaint against us does not fall under the juristiction of the Financial Ombudsmun Service.


As i mentioned before, this loan was taken out in 2004, and although the original sale conversation was quite some time ago, and i cant remember the whole conversation, i do remember speaking to them on the same call regarding the loan and the ppi, i know i did not receive a further telephone conversation regarding the ppi seperately like they stated in their letter, and i know for sure that if i was told it was optional then i would not have agreed to it.

when i sent my complaint i expected them to reject my complaint, but not reply with lies!

would anyone be able to advise me where to go with this now please??
i dont want to give up without a fight even if the FOS cant help me like they said.

thanks in advance for any advice.

magpiecottage

jimmy46 wrote: »

you applied for a loan of £8000 on 30 june 2004 to consolidate existing debts. you were accepted for credit based on your application details and credit information.

the loan itself is of no relevance to the suitability of the PPI cover

our representative then contacted you and advised you of your approval before disscusing the financial particulars of the agreement.

again irrelevant to your complaint.

we recomended you purchase Payment Protection Insurance (ppi) to protect your loan repayments in the absence of any esisting cover.

Then it was on their recommendation. Was it a single premium or a monthly one and did you have existing cover?

You were provided with a quotation that suited your budget and included your insurance requirements, which you confirmed you were happy with. Documentation was despatched and included a PPI policy summary.

This is not sufficient to demonstrate suitability

You have signed the agreement confirming you wished to be bound to the terms.

Presumably of the loan, not the insurance

you were free to cancel the policy within 30 days of signing the agreement or receiving the policy documents (whichever is later) and would have received a full rebate of premiums.

FSA Rule DISP App 3.3.6G says, "The firm should not reject a complaint because the complainant failed to exercise the right to cancel the policy."

we can find no other reason to suggest the cover was mis-sold.in view of the above, we are unable to offer you a refund of premiums.

That is because it seems to be the worst investigation of a complaint that I have come across in a very long time.

you entered into the Credit Agreement on or around 5 july 2004. The basis of your claim is that you were mis-sold PPI on or around the same date. we consider that, as your policy was sold more than 6 years ago, under the Limitation Act 1980 you may be too late to make a claim against us. If you consider that this is not the case please let us know why.

The Limitation Act permits them to timebar only if it is more than six years since the events giving rise to the complaint AND more than three years since you became aware (or ought reasonably to have become aware) that you had cause for complaint.

In addition, due to the date that you were sold the PPI, your complaint against us does not fall under the juristiction of the Financial Ombudsmun Service.

I am not convinced that this is the case. Although general insurance broking was not subject to the jurisdiction of FOS until 2005, if the firm subscribed to the General Insurance Standards Council's code of practice at the time it will do if the firm subsequently came under FOS jurisdiction and, since all consumer credit licence holders now are, I think it might.

I would contact FOS in the first instance on 0300 123 9 123 or 0800 023 4567

jimmy46

Thank you very much for your reply Magpiecottage, I will give the FOS a call.

Answer to your questions. no i didnt have existing cover, and ppi taken with funding corp was a single premium - the total ppi amount was added to the loan and was the first thing paid. but it only come to light recently when going through old paper work that we paid £215 a month for around 18 months on a 8000 loan, and when we paid off early we owed more than the original loan just over 8000 due to the ppi which was paid first! heartbreaking that all that money was only paid for ppi alone!!

thanks again for your comments on the letter i received you have been really helpfull. and made it clearer.

magpiecottage

Try also to find out who the insurer was.

magpiecottage

If what AFC Car Finance says is true then it seems to have carried out a handbrake turn because it has its previous response seems to have involved sex and travel!

irnbru74

jimmy46 wrote: »

Hi everyone, wondered if anyone could give me some advise on what to do next (if i can!).
I sent a complaint letter to the funding corporation on 30th august, regarding ppi that i was missold in 2004, when i took out a loan for £8000, I was told I could not get my loan agreedwithout the PPI attached. the ppi was not made clear to me that it was optional. I paid this loan off early in feb/march 2006.
I received a response today.. this is the letter i received today:

Further to our letter, i have now investigated your complaint and confirm we do not uphold the allegations of mis - sale for the following reasons:

• you applied for a loan of £8000 on 30 june 2004 to consolidate existing debts. you were accepted for credit based on your application details and credit information.
• our representative then contacted you and advised you of your approval before disscusing the financial particulars of the agreement.
• we recomended you purchase Payment Protection Insurance (ppi) to protect your loan repayments in the absence of any esisting cover. You were provided with a quotation that suited your budget and included your insurance requirements, which you confirmed you were happy with. Documentation was despatched and included a PPI policy summary. You have signed the agreement confirming you wished to be bound to the terms.
• you were free to cancel the policy within 30 days of signing the agreement or receiving the policy documents (whichever is later) and would have received a full rebate of premiums.
• we can find no other reason to suggest the cover was mis-sold.

in view of the above, we are unable to offer you a refund of premiums.

you entered into the Credit Agreement on or around 5 july 2004. The basis of your claim is that you were mis-sold PPI on or around the same date. we consider that, as your policy was sold more than 6 years ago, under the Limitation Act 1980 you may be too late to make a claim against us. If you consider that this is not the case please let us know why.

In addition, due to the date that you were sold the PPI, your complaint against us does not fall under the juristiction of the Financial Ombudsmun Service.


As i mentioned before, this loan was taken out in 2004, and although the original sale conversation was quite some time ago, and i cant remember the whole conversation, i do remember speaking to them on the same call regarding the loan and the ppi, i know i did not receive a further telephone conversation regarding the ppi seperately like they stated in their letter, and i know for sure that if i was told it was optional then i would not have agreed to it.

when i sent my complaint i expected them to reject my complaint, but not reply with lies!

would anyone be able to advise me where to go with this now please??
i dont want to give up without a fight even if the FOS cant help me like they said.

thanks in advance for any advice.

This sounds oh so familar,
My husband was in same circumstance as you, felt he had no option BUT to take the PPI otherwise wouldn't get loan.
We received a letter stating much the same as you, letter gave us chance to redress their response.
I telephoned them and told them we weren't happy and would be taking it further and that we would SAR them.
Received SAR info back and within days they sent me final response letter. The fact that I had telephoned and stated that we were taking it further, but would wait for SAR info - wasn't taken into account and they still closed the complaint.
Information in SAR did not back up their reasons for rejection.
No transcripts etc only system notes, which did not the give details highlighted in their rejection letter and were subsequently the basis for the rejection.
I sent an email redressing points that they made and actually made new complaints.
Only difference to yourself, is my husband had more than adequate cover 6 months half pay/6 months full pay and life cover (with critical illness) their demands and needs statement said that he had no cover in place - contadicting what was said in the system notes as this showed they were fully aware of his level of cover; and this formed part of our new complaint along with the fact it was single premium and that it wasn't adeqately explained to us, to allow us to make an informed decision.
However, AFC didn't even have the courtesy to respond, when I telephoned them regarding this, they stated that as they had closed the complaint they were not obliged to respond or even investigate the new complaints we had made.
Their customer care is atrocious.

I think the FOS, is going to have a field day with them, with their lack of regard and dismissive attitude to their customers complaints.
Has anybody had their complaints upheld by this company?

src007

ACF_Car_Finance wrote: »

Dear jimmy46,

At The Funding Corporation we take all complaints very seriously and would like to try to resolve this matter for you. .

Current firm-level complaints data

ACF Car Finance- General Insurance & Pure Protection, July- Dec 2010- Complaint = 600, upheld = 0


Funding Corporation- General Insurance & Pure Protection, July- Dec 2010- Complaints = 603, upheld = 1

From here:

http://www.fsa.gov.uk/pages/Library/Other_publications/commentary/firm_spec/table.shtml


http://www.thisismoney.co.uk/money/cardsloans/article-1608529/7k-car-cost-21k--My-Funding-Corporation-hell.html

They certainly take rejecting complaints very seriously at their CRD (complaints rejection department).

jimmy46

ACF_Car_Finance wrote: »

Dear jimmy46,

At The Funding Corporation we take all complaints very seriously and would like to try to resolve this matter for you.

Please contact our Complaints Department on 0845 271 7896 or alternatively write to: Complaints Department, The Funding Corporation, International House, Kingsfield Court, Chester Business Park, Chester CH4 9RF.

The most effective way to deal with this issue is directly with a TFC Customer Services Representative. Unfortunately the company is unable to deal with your complaint over a public forum due to Data Protection.

Thank you for your cooperation.



The Funding Corporation.

Hello ,

I wrote to the Funding Corporation to complain, and i was hoping that they would be able to resolve my complaint in the first instance. Not to worry though as i will be contacting the funding corporation again soon regarding this matter.

regards

magpiecottage

ACF Car Finance can you tell us who the insurer is please (or can irnbru74 or jimmy46?)

jimmy46

Hi Magpiecottage, just looked through all my old documents and the insurer is axa insurance.

irnbru74

Good luck, Jimmy!
Let us know how you get on, we're off to the FOS along with the 602 other people who have had their complaints rejected!