missold payment protection insurance by freedom finance

sberenyi

Hi everyone

In 2003 I decided to take out a secured personal loan for 30000.00.

When I took it out I explained that I only needed to borrow the money for 6 months, so I needed a loan with no redemption penalty. The agent from freedom finance said he could arrange the loan but at a higher rate of interest as the finance company firstplus financial group plc would not charge a redemption penalty. He also said that if I took out payment protection insurance it would give me a greater chance of getting the finance. I wanted low repayments so agreed to take out a loan over 25yrs, and as I only intended to have the loan for six months I thought - well ok its not that unreasonable. When it came to clearing the loan some months later I was informed that the payment protection insurance had been front loaded for 25years and if I wanted to clear the loan now I would have to pay a £7500.00 redemption fee in the form of the frontloaded payment protection insurance. I could not afford this and the remortgage I had to make to clear this extra amount cost me dearly. I contacted the company's invoved who rebuffed me saying very sorry, you signed for it, so you pay for it. There was one other option. I was told that if I held the loan for five years I would have a thirty day period that they had no responsibility to advise me of in which I could reclaim the £7500.00 and that if I failed to apply for the money in this time I would be unable to recover it.

I was clearly missold and mislead on the insurance. I can't be the only one. What can I do?

dunstonh

you should complain. This is a typical example of a mis-sale and a company was fined by the FSA recently for doing exactly that sort of thing.