ACF Car Finance PPI

Terry01234

In April my girlfriend phone ACF and inquired about being mis-sold her PPI insurance. She was told she had to take it out, to proceed with the loan.

Today we have received a letter back from ACF, saying the claim wasn't mis-sold, if we want to take it further fill in the questionnaire and return, which we will be doing later today.

They are stating in the letter...

- She applied for credit only, and was accepted on credit only. Then only when going to select a car the insurance was spoke about.

- The PPI was recommended to be taken out, as no alternative cover in place to cover payments.
She had HSA at the time, and would also been paid sick from work.

- A credit agreement was signed accepting the loan and a separate insurance box was signed.

- PPI Costs was were set out separately to any other costs. Once this was confirmed as being happy with it the credit agreement was drawn up.

When the agreement was signed the PPI started at... £2,794.93 but at the end of the agreement (48months later) it she ended up paying... £4,919.04. Paid in month installments

We believe this was mis-sold, just wanted to get some advice from some other people that more about PPI reclaim.

magpiecottage

Terry01234 wrote: »

The PPI was recommended to be taken out, as no alternative cover in place to cover payments.
She had HSA at the time, and would also been paid sick from work.

Doesn't HSA only pay out if you are in hospital?

How much sick pay would have been received - and for how long?

How would you have coped with redundancy?

A credit agreement was signed accepting the loan and a separate insurance box was signed.

That points away from a missale.

PPI Costs was were set out separately to any other costs. Once this was confirmed as being happy with it the credit agreement was drawn up.

So does that

When the agreement was signed the PPI started at... £2,794.93 but at the end of the agreement (48months later) it she ended up paying... £4,919.04.

I'm not sure what you mean by this. If you mean this is the total amount she paid including capital, interest and PPI premiums then it does not show us anything that would indicate PPI was missold.

I am not saying it was or it wasn't - simply that the information you have given is not enough to give a valid opinion.

Terry01234

Not looking good then

She said she felt bullied into the insurance at the time of purchase. But the letter says we could of cancelled it any point, but would had to pay a settlement figure.

I have just looked at the paper work under the payment protection Insurance it says see clause 15 in T&C's.

Clause 15 says...

- you warrant that you are in good health and engaged in full-time employment

However only work 20hrs a week, which is part time.

With sickpay she would get 3 months full pay, 3 months half, then just SSP.
Redundancy, would of been able to just other funds. I.e. redundancy pay off? Paid off a lump sum to lower further payments.

Is it correct you pay the same APR for the PPI as the loan?