Welcome Finance - PPI Query

sgx.saint

Hi.

Firstly, MODS please feel free to move this thread to a more appropriate forum if you can find one. I posted here as I will get more of a response imho.

My OH has a loan with Welcome Finance which she took out even though I advised her of the stupidly high APR.

She has had the loan for around three months now and after speaking with her about it recently I realised that she had been completely mis-sold PPI.

The staff member at the local branch basically said that they would only offer her the loan if she took out PPI as a safeguard.

Now I am fully aware that this is against FSA regulations and as a result I wrote her a letter to send to the local branch and to head office asking them to repay her the PPI premiums and adjust the total loan amount accordingly.

I received no response to these requests, so I issued a second set of letters again stating that she had been mis-sold PPI and to refund all costs and charges.

Again, no reply. I now want to take further action to recover the costs. Obviously I could pursue this matter through the courts, but this would be costly to begin with so I was wondering if the best route would be to lodge a complaint via the Financial Ombudsman?

Can the Ombudsman deal with mis-sold PPI issues, and will they be able to recover her full costs etc?

I was also wondering if anyone had gone down this route and could share your experiences.

I appreciate your thoughts.

sgx.saint

***bump ***

lush_bucket

Unfortunately I am in no position to advise you on this, but would be very interested in the outcome. I too took a loan with them for £750 about six months ago, and was told I couldnt have the loan without the PPI, after trawling this site I finally pulled out the agreement to find my APR is 60 percent! (jaw drop) and the PPI is £558.00. Crikey! I owe them more than £2000 for a £750 loan. Big Mistake.

sgx.saint

Update:

I have sent them as of today a final letter asking them to refund the PPI within the next 7 days or face further action.

If I receive no satisfactory reply within 7 days I shall commence action against them through the FSA and the Financial Ombudsman. I will keep you all posted for those interested parties.

Please also feel free to reply on this thread if you have been through this yourself.