Purple Loan/GE Money Double Problem

janabelloo246

Have raised a couple of issues with GE Money following an alarming annual statement in September last year (2011).
My loan was taken out in 2002 but following a marital break-up I was left with the payments (even though it was a joint loan) along with arrears (where my ex hadn't paid his share).
It took me 3 years to get back to square 1. I was in touch with the loans company on a regular basis to check that once the arrears were up to date I was able to revert back to the original payments. At no point was it pointed out to me that the original payments would mean a shortfall of circa £150 per month and that the interest rate had increased since the original payment was set. I had received nothing regarding these increases/changes and, perhaps naively, had assumed that I was still on schedule to complete the loan as contracted (nearly £28k over 25 years secured loan). The statement in September came as quite a shock as, at the rate I was paying the loan off I would still owe £15k at the end of the term (assuming there wouldn't be futher increases in the interest rate). This was never pointed out to me either during my calls or by post until I received the statement. I have made a formal complaint which was acknowledged on 29th September and following a couple of further letters and a call to them confirming that they were still looking into it I have heard nothing since.
While I was looking through the paperwork for the loan I saw that the PPI was paid upfront (£3,275!) and have also made a claim re misselling as, at the time it wasn't explained that other PPI was available and that because of my medical history the payment would be next to useless. I have heard nothing back on this either.
I need advice re the next step please.
Many thanks
Janabelloo

banks4u

Go straight to FOS your well within your rights now. Don't chase GE, they have not done what they were meant to do as per fSa rules. Also claim the ppi back. P.s who was the broker for the secured loan?

janabelloo246

Thanks for advice Banks4u

I have recieved, today, a response from GE Money re both parts of my complaint.

They have now credited the account by over £7,000 as a "gesture of goodwill" to offset the underpayment which is a huge relief. I will be circa £120 worse off per month but at least I'm back on schedule. I'm hoping to re mortgage but need to enquire re any indemnity etc. It's a bit of a double edge but I really do appreciate the refund gesture.

My second complaint regarding the PPI has also been investigated and their response is that my complaint is time barred under the Limitations Act 1980.

Not sure where I stand with this. My loan was with Purple Loans, their paperwork is headed as Midland and General Direct (stated as the broker) and application form has First National across the top!?

GE Money bought my loan from "whoever" above and have, in their last letter stated that at no point were they members of GISC.

What does that mean?

The broker knew that I had a significant medical history that he shouldn't have ignored.
The PPI was sold as an upfront lump sum which is effectively worthless. At no point was this pointed out.

They have stated that this is their final response on the matter. Do I still take this to the FOS? Or am I wasting my time?

Would really appreciate to hear from anyone who has has this issue.

Many thanks

:huh: