Reclaiming PPI from GE Money

Lucysky

Hi,
I have been 'lurking' on these sites for a while now and find the advice brilliant! I am hoping someone can offer some advice for our issue.

We have just been rejected by GE Money for a reclaim on PPI on a secured loan taken out in 2002, it was through a broker called The Personal Loan Express who I believe no longer trade. Anyway GE Money have advised us to go to TPLE with our complaint which I intend to do however if they are no longer trading do I go via the underwriters of the insurance and if so how do I find out who they are?

We paid off the balance of the loan in 2004 (I believe we would have asked for a settlement balance) but we did not pay off the single premium insurance (this is one of the reasons we are reclaiming) however GE Money are refusing to let us cancel the PPI! We tried to cancel it back in 2004 and again a few weeks ago, so we have been paying around £19 a month for the past 7 years for a policy we do not need, never needed and are no longer covered under as it only lasted for 5 years of the 10 years we would be paying the loan for. We still have another year of payments to go! :eek:

Can anyone give any advice on how to respond to GE Money? Should we be able to cancel the policy and ask for all of the money that we have paid for the PPI since paying off the loan in full in 2004?

Any help or advice would be much appreciated.

amersall

Hi there,Dont cancel this ppi yet.You need to find out who the insurer is and put a claim in for mis sell to them.You wont get any refund from GE money.
FOS may help you to find out who the insurer was.
http://www.financial-ombudsman.org.uk/contact/index.html

Youe reasons for mis sell are We/I believe we were mis sold the ppi on the above account number.
1)We/I were not told that the ppi was in effect another loan that was added to the original loan and was repayable over the loan term with interest.

2) We/I were not told that the ppi only covered us for 5 years, but the ppi would still be on the loan to term end with interest.

(3)put here you have settled the loan and are still paying for the ppi that no longer covers you and any bonus or no claims they said you could get on the ppi(if any))

3) We/I were told that if we did not make a claim on the ppi ,after 5 years we would recieve the ppi as cashback, and to look on this as savings plan.. But were not told that the ppi would be on the loan to term end with interest and the cashback of ppi would not include the interest that we paid over the 5 years.


In line with the FOS recommendations it is requested that the overall situation be restored as if PPI had never been included. This will entail:
a) A refund of the monthly payments that have actually been paid towards the overall loan in excess of those that would have been needed, if the original loan had been sold without the PPI policy;
b) Restructuring of the loan going forward so that the amount owed, the monthly repayments, the term and the charges reflect those that would have applied, if the original loan had been sold without the PPI policy.
c) In addition, interest at the rate of 8% simple per annum to any excess payments made from the time each payment was made to the point that (the company) pays them back to us. We/i believe we were not given enough information on this ppi to make an informed decision. Had we/i known the full cost of this ppi we would not have taken it.

Unless you can prove without doubt that this PPI policy was fair, reasonable and suitable for my/our circumstances we/I will require you to rearrange the loan as if PPI had never been included on the above loan.

roonaldo

I see whats happened here, your insurance was in fact a 2nd loan from GE Money for insurance only. The policy has expired as they were only 5 year policies. Its a 5 year policy you paying for over 10 years or something. Is this correct? Is the account number of the one you are still paying ending 002?

KIMY

I had exactly same PPI complaint with GE Money and as Personal Loan Express went under before 2005 the FSCS can not help you. I have a claiming with FOS for 18 months now against Cardiff Pinnacle as my policy was only for 5 years on a 10 year loan. I paid my loan off in 2004 and had paid over £10k in frontloaded PPI and was only rebated for early settlement £3.5k. The PPI was no good to me as l had full sick pay etc, I have to wait as FOS are now considering test cases against Insurance companies and they have explained could be years for outcome.

roonaldo

This ones different, its not just a term mis-match issue, but a loan solely to finance the PPI.

Lucysky

Thank you very much for your replies and advice.

Amersall - I will have a look at the FOS to try and find out who the insurers are and your suggestions for the letter is great, I will definately be using them and will let you know how we get on. If we cancel the insurance will we not be able to reclaim it?

roonaldo - the PPI was added to the loan and was to be paid for the full 10 years but it did only cover us for 5 years. I will double check if the loan account for the PPI ends in 002 and let you know. ( I have a funny feeling it does)

KIMY - How is your claim with GE Money and the Personal Loan Express going? Are you having any luck?

Does anyone know though why GE Money won't let us cancel the policy?

roonaldo

Lucysky wrote: »

Does anyone know though why GE Money won't let us cancel the policy?

I think I have answered this for you. It sounds like its a 2nd account, its a 10 year loan that solely funded a 5 year PPI. The PPI has expired so there is nothing to cancel, but you are still paying for the loan that paid for it, you cant cancel the loan as you still owe money on it. Its a pretty poor arrangement.

This is a common GE Money thing where they sold a 2nd account ending 002 to people to cover PPI for the 2nd applicant (as PPI for applicant one was in the main loan ending 001). Hope that makes sense.

magpiecottage

This is interesting.

The original intermediary is liable for a single premium policy which is normally considered bad advice. The firm no longer exists but that is the only reason why you cannot take it to FOS.

However, since GE Money provided a loan to pay for the policy it is jointly and severally liable under Section 75 of the Consumer Credit Act 1974. It may argue that, it did not subscribe to the General Insurance Standards Council's code at the time so FOS cannot consider it.

However, you may be able to persuade FOS that it should nevertheless consider the complaint under its Consumer Credit Act jurisdicton.