Paragon, Loans.co.uk, PPI Claim advice please

cabbagebank

Hello everyone,

old slow coach here, is about to investigate PPI reclaim from a loan take out in February 2005,

Whilst we were younger and a bit more wet behind the ears, my partner and i took out a loan to consolidate our joint debts (eek i know!)

After inputting our details on a loan comparison website, we were contacted by loans.co.uk

A representative could not wait to come and see us to answer all of our prayers.

After a Hard sell, we agreed a loan of £30,000 with their recommended loan supplier of Paragon. (over 25yrs)
We were told it would only be accepted if we agreed to the personal protection insurance.
This was sugar coated with the fact that, if you pay your loan amounts without fail for the first 10 years you would get initial PPI money back.

Paragon put a PP premium of £5100 on top of our loan which with interest would be an extra £8286 - total PPI of £13,386

It was quite clear from the early stages of this loan that we had been fools and were being held by the testicles so to speak, as at an average rate of every 2 months, Paragon put up the interest rate on our loan and payments had increased by £70 per month within 2 years (this was in the days of a good economy)

We paid off this loan in full as soon as possible via a remortgage, and am quite happy to say, are driving our mortgage down via all the tips in this site over a 10 year plan.

So...after the babbling story above, the Big question(s)..

Can I Reclaim off anybody?, Who could I reclaim off, which route is the best route?

I have all paperwork for loan and details, I would REALLY appreciate anybody's help in this matter

Thanks for listening

Regards

Gary

Ps. I know we were fools, telling me again won't help

amersall

Hi there,you need to send this to Paragon.

We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.

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 told that the ppi was a 5 year policy, but not told the ppi would still be on the loan to term end with interest.

3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would recive the cashback of ppi but this would not include the interest made on these payments 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 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.

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 Firstplus 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.

This is a win.

amersall

By the way....you are a fool :D

Seriously though you are among a fair few people who have gone this route,no worries,get back what is yours.

cabbagebank

amersall wrote: »

Hi there,you need to send this to Paragon.

We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.

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 told that the ppi was a 5 year policy, but not told the ppi would still be on the loan to term end with interest.

3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would recive the cashback of ppi but this would not include the interest made on these payments 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 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.

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 Firstplus 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.

This is a win.

Thanks for the reply Amersall.

A few quick questions on the recommended letter:

1. I am assuming i replace firstplus with Paragon?
2. where does the 8% come from?
3. Will they reply to this letter? will they try and blame the broker (loans.co.uk)?
4. is it too late (feb/march 2005 loan agreed) to make a claim?
5. I asked for the fool quote didn't I? LOL :rotfl:

NEss

amersall wrote: »

Hi there,you need to send this to Paragon.

We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.

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 told that the ppi was a 5 year policy, but not told the ppi would still be on the loan to term end with interest.

3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would recive the cashback of ppi but this would not include the interest made on these payments 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 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.

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 Firstplus 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.

This is a win.

Sorry to cut in here, I have just received a letter back from firstplus (where I sent the PPI complaint). They quoted that "the loan and insurance was actually sold to you by e-loans.co.uk who have now ceased trading". They've advised us to contact the FSCS and to pass on the complaint to them.

All the documentations I have are from Firstplus and they were the ones who added the ppi onto the loan, can anyone advise me of who I need to contact as personally I still think it's firstplus put don't know how to proceed.

Thank you for any help

amersall

cabbagebank wrote: »

Thanks for the reply Amersall.

A few quick questions on the recommended letter:

1. I am assuming i replace firstplus with Paragon?yes

2. where does the 8% come from?Paragon give it
3. Will they reply to this letter? will they try and blame the broker (loans.co.uk)?they may do this,if they do they pass your complaint nt over to them
4. is it too late (feb/march 2005 loan agreed) to make a claim?no it is not.
5. I asked for the fool quote didn't I? LOL :rotfl:

5. I asked for the fool quote didn't I? LOL

yes you did :p:p

amersall

NEss wrote: »

Sorry to cut in here, I have just received a letter back from firstplus (where I sent the PPI complaint). They quoted that "the loan and insurance was actually sold to you by e-loans.co.uk who have now ceased trading". They've advised us to contact the FSCS and to pass on the complaint to them.

All the documentations I have are from Firstplus and they were the ones who added the ppi onto the loan, can anyone advise me of who I need to contact as personally I still think it's firstplus put don't know how to proceed.

Thank you for any help

Hi there, what year did you take this loan out?.

It is possible FP are not liable here.

If the loan was post jan 14th 2005 ring FSCS and ask what you can do,if it was before this date you may have to go for the insurer.
http://www.fscs.org.uk/contact-us/

Use the reasons i gave in my other post, for the reasons for mis sell.

Let me know how you get on.

miserableindebt

we did a lot of the same thing when we first got married, and I thought we were fools too, until now I am waiting to hear of a £6000 ppi from first plus plus interest, so maybe not so foolish haha!!!

Good luck! I had a paragon loan as well but haven't kept any paperwork.

By the way I thought you would have to go through loan.co.uk if it was them who sold it to you in the first place. There are quite a few threads on here relating to paragon who were sold it from loans.co.uk and they have all been told to go via them. Maybe write same letter to both?