PPI Reclaiming Discussion Part 5

maggymoo

-taff wrote: »

No, because they've told you it was sold prior to Janaury 2005, so you can't complain to the FOS, or rather, you can, but it falls outside of their jurisdiction, so there'll be nothing they can do.

The only thing you can do is complain to the insurer, but that is probably going to fail as well, so don't get your hopes up.

Find out who the insurer was, and make a complaint, but as i said, it's not likely to succeed because you are complaining there was a fault with the sales process, and the insurer didn't sell it to you.

Thanks for your help, i think i will leave it then. Really gutted about that one. Oh well.

One more question.
I don't have all my ppi account numbers do i need them?

VfM4meplse

I haven't really had any concerns re: PPI to date as I have never knowingly consented to pay for it. I've been inundated with unsolicited calls and texts, which I assumed were from chancers.

I heard an ad on the radio the other day that suggested major financial companies would hide PPI within the product Ts&Cs, so many don't realise that they have been charged. Is this true?

I have had mortgages with Nationwide, RBS and C&G. Do they routinely charge PPI?

Insider101

VfM4meplse wrote: »

I haven't really had any concerns re: PPI to date as I have never knowingly consented to pay for it. I've been inundated with unsolicited calls and texts, which I assumed were from chancers.

I heard an ad on the radio the other day that suggested major financial companies would hide PPI within the product Ts&Cs, so many don't realise that they have been charged. Is this true?

I have had mortgages with Nationwide, RBS and C&G. Do they routinely charge PPI?

This is nonsense aimed at trying to drum up business in the hope of striking it lucky. You cannot hide PPI especially not with mortgages. If it a stand alone monthly payment from your current account just like your buildings insurance is.

Not that it would have been a bad idea to take PPI with your mortgage, it's a long term debt and the consequences of not paying it are a lot more severe than say a loan or credit card.

dunstonh

I have had mortgages with Nationwide, RBS and C&G. Do they routinely charge PPI?

cant be hidden. That is a myth. MPPI is usually a monthly direct debit from your current account. Which is one of the reasons why it usually fails. Some older ones could be taken from the mortgage but it would appear on the mortgage statement.

magpiecottage

welshborderer wrote: »

I'm new to the MSE forum so please bear with me. I would like to raise an issue which I believe has been raised - and answered - in other posts but still interests me: the difference between ppi and mortgage indemnity insurance (mii). If anyone has an informed view i'd be grateful to hear it.

As I understand ppi, it was an optional insurance policy that in effect customers were conned into taking, even though many would never have been able to claim on.

It is not always optional. An insurer can insist on it. Historically there have been mortgage deals where that happened.

When it did, there was no missale.

For mortgages, too, in most cases it has historically been considered good advice to take it out because you risk losing your home if you do not keep up repayments. In fact the Mortgage Code Compliance Board said that mortgage advisers should get borrowers to sign a disclaimer if they refused it.

The other day I was looking through old financial papers and at a payment for mii going back to 1993. I had bought a flat in London for £64 and had to pay £940 in mii in order to secure a mortgage.

I presume you mean £64,000

For those who weren't around at the time, the mortgage market was an interesting place back in the early 90s. It was very difficult to get hold of a mortgage

I used to run a mortgage desk in those days. Interest rates were higher and the salary multiples were lower but it was considerably easier to get a mortgage then than it has been in the last five years or so.

I think all of the mortgage providers insisted on an mii payment. (Interestingly, mii was done away later by the mortgage providers themselves.)

If you didn't want to pay mii then you didn't get a mortgage.

That is not true. Lenders normally offered loans up to 75% of the purchase price (80% for some lenders) and did not require a mortgage indemnity guarantee. It was only if you wanted a loan that exceeded their normal criteria that it was required.

At the time I complained as aggressively as I could to my mortgage provider that even though mii was an agreement between mortgage company and insurance company

But the mortgage is an agreement between you and the lender. You wanted more than the lender's normal limit. It was prepared to grant you a concession provided it had the additional securiy - but it was doing you the favour, so it is right that you should meet the cost of providing that additional security.

it would never be needed because of my personal circumstances. I was a civil servant in an extremely secure job

Like so many civil servants who have subsequently lost their jobs.

with very generous sickness absence terms.

Do you know exactly what those terms were? If you had become permanently disabled they were not particularly generous. Even at their best (which you would only get after 33 years' service) your income dropped by 50% - and it could have been as much as 100%.

anyway I come from a generation that ALWAYS paid their bills.

Don't be silly, there have always been people who did not pay their bills.

In fact, it was precisely because of this that lenders normally insisted on borrowers putting 25% of their own money in. They were putting up a significant stake - which they stood to lose.

Due to a move with work, I only held the mortgage for two years which meant that mii worked out at nearly £40 a month on top of the mortgage.

You would also have paid for a survey, stamp duty, legal fees for both the purchase and the sale and estate agency fees on the sale.

If you knew you were going to move so soon I presume you would have simply rented. However, it is not the lender's fault either.

Also, there was never any attempt to assess the risk - it was just a lump sum added on irrespective - which I would have thought was an essential part of the insurance industry.

Actually there were two underwriting processes. First, the lender underwrote the risk of the loan itself, considering your earnings and your job security as well as the financial stake you had in the arrangement.

Then the insurer's terms for the MIG were also based on the risk. This would have been a rate per £1,000 over the 75% that you were borrowing - and the rate was also higher if it went over 90% and higher still if it was overr 95%.

In actual terms, the mortgage company made many millions of pounds out of mortgage customers like me, while I had to spend the first six weeks in my new flat sleeping on the floor because I couldn't afford a bed!

Mortgage lenders do not actually lend their own money. They borrow it either from other financial institutions or from savers. They have to pay interest on that.

I am not suggesting they do not make a profit but what a borrower pays is not all profit.

The lender also has responsibility to protect those whose money it really is.

VfM4meplse

Insider101 wrote: »

This is nonsense aimed at trying to drum up business in the hope of striking it lucky. You cannot hide PPI especially not with mortgages. If it a stand alone monthly payment from your current account just like your buildings insurance is.

Not that it would have been a bad idea to take PPI with your mortgage, it's a long term debt and the consequences of not paying it are a lot more severe than say a loan or credit card.

I caught some of the Moneybox discussion with Sarah Pennels last night, and agree that it is just scaremongering.

cappo

changing the subject slightly I know some of you on here like me have had trouble with LTSB meeting there deadline they've given themselves 12 weeks now, my adjudicator at the fos says it could be another 8 weeks before I even get an offer let alone a payout. this is after the 12 week deadline expires and LTSB do nothing.

salc71

Hello all, I have a question. I applied to the Co-op for PPI on a credit card account. I still owe them £4,113.25 and has been referred to a debt collection agency. They have written back to me saying that they will pay £1,788.15 which is all my premiums and should be used to pay to the debt collection agency Carbot or alternatively they could pay it directly to me. I had hoped they would wipe off the debt as frequently get letters offering deals to do this, though I don't have the money upfront to meet their offers. So, should I accept this, is it a good result? Or is there room to negotiate further?

cappo

salc71 wrote: »

Hello all, I have a question. I applied to the Co-op for PPI on a credit card account. I still owe them £4,113.25 and has been referred to a debt collection agency. They have written back to me saying that they will pay £1,788.15 which is all my premiums and should be used to pay to the debt collection agency Carbot or alternatively they could pay it directly to me. I had hoped they would wipe off the debt as frequently get letters offering deals to do this, though I don't have the money upfront to meet their offers. So, should I accept this, is it a good result? Or is there room to negotiate further?

Get the money then talk directly to the debt collection agency and try and negotiate a full and final settlement.:) you should get an acceptance off the dca and it would then be paid, that amount should be enough to pay it off

Insider101

cappo wrote: »

Get the money then talk directly to the debt collection agency and try and negotiate a full and final settlement.:) you should get an acceptance off the dca and it would then be paid, that amount should be enough to pay it off

Would a DCA have authority to offer a settlement figure without recourse to the owner of the debt? Genuine question I'm no expert in this field.

Anyway in answer to the original question, the best course of action is just to phone Co-op and ask. We can speculate all we want but ultimately it is their decision.

There is no room to negotiate over the offer figure, that is calculated in accordance with set guidelines. But there may well be over the settlement figure on the account.