PPI claim referred back to garage

Thursday_Angst

Santander referred me back to the garage that issued my 2006 car loan agreement regarding my ppi claim. The garage manager says that if his paperwork is in order then I wont be able to make a claim. But i recall the saleman saying that the ppi was embedded in the agreement and it was mandatory. The garage manager is saying that his salesman wouldnt have said that.
What is the best way to proceed? The garage manager asked for a claim to be made in writing.

DrSqueeze

Have a read through the guide, this may help: http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

There is a questionnaire you can complete which will help you state your case so you don't miss any key points. Remember, even if they reject your complaint that's not the end. If you genuinely believe the PPI was missold, do not be put off by whatever the manager may say.

Thursday_Angst

Thank you, Im already incorporating the questionnaire points in the letter to the manager and thank you for the encouragement.

dunstonh

But i recall the saleman saying that the ppi was embedded in the agreement and it was mandatory.

What evidence do you have to support that allegation?

What is the best way to proceed? The garage manager asked for a claim to be made in writing.

You dont need to make a complaint in writing. You can do it by most methods of communication. So, the garage manager is wrong in that respect. However, it may actually be better for you if you do as the complaint is then in your words and not what someone else has written down in summary. Your reason for complaint is weak. It is a he said/she said scenario. The onus is on you to prove it was sold wrong in that case. Using the single premium with interest added approach may well be better.

magpiecottage

Thursday_Angst wrote: »

The garage manager says that if his paperwork is in order then I wont be able to make a claim. But i recall the saleman saying that the ppi was embedded in the agreement and it was mandatory. The garage manager is saying that his salesman wouldnt have said that.

A complaint made on a point for which neither side can produce evidence is unlikely to succeed.

What is the best way to proceed? The garage manager asked for a claim to be made in writing.

The complaint need not be in writing. However, if you are going to do so, make sure you keep a copy and get proof of posting (free from the Post Office).

Start your letter with "I refer to my telephone call on [date] when I complained to [name of the manager] about the Payment Protection Policy. I would remind you that the Financial Services Authority requires you to consider a complaint that has been made orally or in writing and the respond to it within 8 weeks."

I would take an educated guess that ppi "embedded in the agreement" was a single premium added to the loan. If so, that phrase suggests that they did not tell you the full cost over the whole term of the loan or (if applicable) that the cover expired before the loan was paid off.

The garage will probably try to defend its position but an arrangement like this is almost certain to be paid off if you pursue it to FOS.

Expect a long wait, though.

Thursday_Angst

checked all my paperwork - I paid 11 x ppi payments towards the 60 month hire purchase agreement and then formerly cancelled it with the bank. should I be asking for interest on my claim ? i notice the banks are issuing interest- if so , at what rate? the amount i paid totals around £350

dunstonh

Thursday_Angst wrote: »

checked all my paperwork - I paid 11 x ppi payments towards the 60 month hire purchase agreement and then formerly cancelled it with the bank. should I be asking for interest on my claim ? i notice the banks are issuing interest- if so , at what rate? the amount i paid totals around £350

Are you saying that the PPI was standalone from the loan? If so, then you may as well give up. That is how it should be set up. It is the front loaded PPI added to debt where most of the success is.

It now sounds you have no evidence to support your verbal allegation and cannot fall back on the single premium approach.

magpiecottage

dunstonh wrote: »

Are you saying that the PPI was standalone from the loan? If so, then you may as well give up. That is how it should be set up. It is the front loaded PPI added to debt where most of the success is.

It now sounds you have no evidence to support your verbal allegation and cannot fall back on the single premium approach.

I agree - it was not "embedded" at all but a separate policy.

There is certainly merit in taking out a monthly premium policy. In addition the fact that you decided it was unsuitable in 2007 would suggest you felt you were dissatisfied then but chose to do something about it until now.

Thursday_Angst

Thank you for your replies
It was a hire purchase agreement
the total monthly payments were listed on page 1
at the bottom of page 2 was the additional amount of ppi payments which the salesman said I had to have or else I wouldnt be able to get the finance, as 'it was the only way the garage made any money from the deal'.
After a year I was told by a colleague that it was optional and to remove it.
There doesnt appear to be a separate agreement about the ppi
The reason why I say it was embedded was because on the hp contract that I signed, the amount was next to one line that said Credit Payment Insurance and nothing else except the amount.

Thursday_Angst

also - the ppi amount was added to the total monthly ddebit. ie total of page 1 plus amount at bottom of page 2 was paid each month.