PPI Reclaiming Discussion Part 5

dunstonh

jenkit wrote: »

Hi, I took out a mortgage and was told I had to have the life insurance through the mortgage company also or else I wouldn't qualify for the mortgage. Is this the same thing as misold PPI does anyone know? Do I have a case as it was over 10 years ago.
Thanks

Life assurance is not PPI. Over the decades, life assurance used to be mandatory for everyone but has become less so. For some people it still it common (business banking customers have it a a frequent requirement and for good reason). Where is is a requirement of the lending then that is allowed. Estate agent mortgage brokers or some other mortgage brokers also require you to buy it as that is where they make their money (i.e. you buy the insurance and you get free mortgage advice or you pay a fee instead). Again, that is allowed.

Life assurance sales complaints are rare. Unless you had no financial need for the life assurance policy (single or living alone for example) then a complaint is not going to succeed as you are talking about a mortgage here and nearly everyone takes out life assurance on their mortgage. If you did have no financial need then there is scope for a complaint there.

cjmcdougall

Hi, I was hoping someone would be able to help? I had a loan and credit card with Egg around 6 years ago but no longer have any of the details for either account. As far as I'm aware all complaints made to Egg are now being dealt with by Canada Square Operations? Can anyone advise me on what I can do to obtain the information for both accounts that I need to make a claim?

Thanks :-)

Chunky_monkey_3

I too am looking for a little guidance.
I have an offer to settle from LTSB at £1200 for mis-sold PPI on a loan taken out in 1988 (yes 1988). The loan amount was £3500 and the PPI premium was £504 added to the loan (so total amount borrowed £4004).
I have the paperwork which was supplied to LTSB with the claim form and the stated interest rate was 1.5% per month. The loan period was 60 months but I do not recall whether it was paid off early or ran the full course. My question is: Is the proposed settlement of £1200 reasonable as the letter indicates this to be an offer to settle based upon "the average the average compensatory payment" LTSB admit they have no records although I have sent them copies of the original loan document and they say their offer is made because "even if we were able to assume the amount and the term of the loan based, for example, on your recollections, there is no guarantee our calculations would be accurate as we have no way of knowing when the loan was settled or if any claims have been paid under the policy." I know that no claim under the insurance was made but as stated above cannot be sure whether the loan was repaid early or went the full term.
Any ideas anyone? Very grateful for any guidance. Well done to all of you who help others along the way.

[Deleted User]

Chunky_monkey wrote: »

Any ideas anyone? Very grateful for any guidance. Well done to all of you who help others along the way.

They're offering a goodwill payment because they no longer have records of your loan.
It's up to you whether you accept, but you'd need comprehensive details of the loan repayments from your own archive in order to be offered more.

Chunky_monkey_3

Ref my post above. Sorry about the duplication of the words "the average" but I am sure you get my drift.
Having got my calculator out, 8% simple interest on £504 is £40.32 for 25 years (the loan was taken out in feb 1988) = £1008 plus the original £504 amount = £1512. Is this the correct way of calculating this?

[Deleted User]

Chunky_monkey wrote: »

Is this the correct way of calculating this?

There is no calculation possible because the Bank no longer have records. The only way you'd get the "correct" redress is if you somehow found comprehensive details of all your loan repayments in your own archive.

Chunky_monkey_3

Moneyineptitude wrote: »

They're offering a goodwill payment because they no longer have records of your loan.
It's up to you whether you accept, but you'd need comprehensive details of the loan repayments from your own archive in order to be offered more.

Thanks for the reply, but can you explain how the loan repayment schedule affects the calculation?

[Deleted User]

Chunky_monkey wrote: »

Thanks for the reply, but can you explain how the loan repayment schedule affects the calculation?

There is nothing to explain. You have no records. The Bank have no records. The Bank are offering a goodwill payment. You can choose to accept it or not, but you won't receive any more unless you can prove your payments.

Otherwise it will be like Jim Bowen, "This is what you would have won"

Chunky_monkey_3

Moneyineptitude wrote: »

There is nothing to explain. You have no records. The Bank have no records. The Bank are offering a goodwill payment. You can choose to accept it or not, but you won't receive any more unless you can prove your payments.

Otherwise it will be like Jim Bowen, "This is what you would have won"

I appreciate your view. What I am trying to confirm is the method for calculating compensation. Ignore any offers of goodwill payment. My (very limited) interpretation gained from the banks examples set out in their letter was that 8% of the PPI premium figure is taken for the number of years since the loan was taken and added to the amount of the PPI premium to create the compensation figure. Are you (or anyone else out there) able to say whether this is your understanding?

-taff

Chunky_monkey wrote: »

I appreciate your view. What I am trying to confirm is the method for calculating compensation. Ignore any offers of goodwill payment. My (very limited) interpretation gained from the banks examples set out in their letter was that 8% of the PPI premium figure is taken for the number of years since the loan was taken and added to the amount of the PPI premium to create the compensation figure. Are you (or anyone else out there) able to say whether this is your understanding?

Amount of PPI paid, plus interest associated with it as it was added to the loan amount, plus sliding 8% interest.
However, in your case, as said, it deosn't apply because you can't prove you paid it all.