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Help with Creation Finance PPI claim
jonnybrussell
Posts: 53 Forumite
Hi,
I am in the process of trying to claim back PPI from Creation Finance.
I have requested and received all the documentation from creation and have submitted my complaint regarding the PPI. We received a letter today.
I write in relation to your complaint regarding the above credit agreement and your Payment
Protection Insurance Ippl) policy.
I have now had the-opportunity to review your complaint in full, and so I would like to confirm
the following in final response.
Firstly, I can confirm that this policy was entirely optional and sold on a non-advised basis.
Therefore, you were issued the following documentation prior to your acceptance of the
proposed Payment Protection and the execution of your credit agreement as a whole:
• An Initial Disclosure Document that describes the financial services offered;
• A Policy Summary outlining the benefits. limitations and exclusions of the cover;
• A Statement of Price which outlines the costs of the product;
• A Statement of Demands and Needs which indicates how it fits your needs and that no
advice or recommendations were given.
The information provided is that required by the Insurance Conduct of Business and must be
provided before the contract of insurance commences. I can therefore confirm that the
requirements have been satisfied by the retailer at the point of sale. Please find enclosed
copies of this documentation for your reference. Due to the non-advised nature of this sale,
the onus was on you to thoroughly review the information you had been provided to ensure
your full understanding before making any decisions on whether to continue; a fact that is
further affirmed under point three of the Initial Disclosure Document, which states that the
customer must make their own choice on how to proceed.
The level of cover was determined systematically based upon the information supplied during
your main credit application. I can therefore confirm that you were fully eligible for this Life,
Accident. Sickness and Unemployment cover as you were self employed, aged under 65 at the
scheduled policy end and a UK resident. As no advice was imparted during the sale there was
no requirement for the sales representative to either discuss any alternative policies available
elsewhere on the market, explore the details of any existing cover you may have already had in
place or assess any aspect of your medical history. It was your responsibility as the customer
to determine your own suitability for the proposed insurance based upon your individual needs
and requirements, having had the opportunity to consider the necessary documentation
beforehand.
You maintain that the key terms and conditions of this cover were not made sufficiently clear
prior to your acceptance of this; in particular the costing. However, should you refer to the
second page of the enclosed Policy Summary, the original copy of which was issued to you at
the initial time of purchase, you will note that a Statement of Price is given. This confirms the
total premium payable, plus the individual amount of interest attached to this, which could
then be cross referenced with your pre contract information document to obtain the proposed
total monthly outgoing to Creation Consumer Finance Limited [formerly known as Open +
Direct! inclusive of PPI. Should you have been dissatisfied with any of this information, you
were fully entitled not to proceed with the product in question, or the credit agreement as a
whole.
Please find enclosed a copy of your signed credit agreement document, where you will note
that you have clearly ticked and signed where applicable to confirm your wishes to proceed
with this policy. Shortly following this, the insurance administrators then ~sent the full details
of the cover that was in place. This reiterated the full terms and conditions of your policy,
including the cancellation rights, giving you a further opportunity to opt out of this should you
have wished.
Due to the above, from the documentation provided and the procedures followed, I can confirm
that the requirements of a non-advised sale have been fully satisfied, and y~ur Payment
Protection Insurance has been activated appropriately. This now finalises my investigations
into the matter and any future correspondence should be referred to the Financial
Ombudsman Service: South Quay Plaza, 183 Marsh Wall, London E14 9SR. Any complaint must • be made within six months of the date of this letter. Please refer to the enclosed Financial
Ombudsman Service leaflet for further information.
Yours sincerely
Emma Crozier
Complaints Advisor
keyfacts
Open + Direct CreditCover
Life, Accident, Sickness and Unemployment Payment Protection Insurance
Pollcy Summary
• t ;
This is a summary of the policy and does not contain the full terms and conditions of the cover, which can be found in the Open + Direct
Creditcover policy document. It is important that you read the policy document carefully when you receive it.
Name of the Insurers
This insurance is underwritten by Norwich Union Insurance Limited whose registered address is, 8 Surrey Street, Norwich, NR1 3NG for all
unemployment cover and for disability cover on credit agreements up to 59 months and Norwich Union Life & Pensions Limited whose
registered address is, 2 Rougier Street, York Y090 1UU for all Life cover and for disability cover on credit agreements of 60 months.
Ty'pe of Insurance and cover
The Creditcover Credit Protection Insurance policy is designed to protect your credit agreement. The policy will provide benefit in the event of
your death. It will also pay your loan repayments if you are made unemployed or unable to work because of sickness or an accident at any point
after the payment start date.
Significant features and benefits
Your policy includes the following significant features and benefits, which are explained fully in your policy document:
If you are unable to work due to an accident or illness for more than 14 days in a row (the waiting period) at any point after the payment
start date, on day 15 we will pay one-half of the monthly benefit. If you remain unable to work for a further 15 days then on day 30 we will
pay the remaining half of the monthly benefit.
• At the end of each complete and continuous 30 days after this that you are unable to work due to accident or illness we will continue to pay
the full monthly benefit.
If you are made unemployed at any point after the payment start date. we will pay unemployment benefit after 30 days (the waiting period).
On day 31 we will pay one monthly benefit. '
We will continue to pay unemployment benefit for each complete 30 day period that you remain unemployed up to a maximum of 12
payments for anyone claim during the insurance period.
• If you die, we will pay the outstanding balance at the date of your death up to a maximum of £50,000.
If you are in paid work for at least 16 hours per week and are aged over 18 and will be under 65 when your loan is due to be repaid, are
resident in the UK and are first named on the finance agreement, you are eligible for cover under the policy.
Significant exclusions and limitations
Your policy excludes some situations. These generally involve anything you already know about or that ;s caused by illegal or deliberate acts on
your part or that is caused by war, national conflict or similar risks. Please refer to the Disability exclusions, Unemployment exclusions and
General exclusions sections of your policy document for full details but the most significant are outlined below.
We will not cover an accident or sickness which results from:
Pre-existing medical conditions. This is any medical condition which you know about when cover starts or you've seen a doctor about
in the 12 months before laking out the cover which persists or retums during the first 24 months of your policy.
• Pregnancy_or..cbildbirth - 'unless tnere hav.e been medical compllcatons, _._- -
• Back conditions - unless you supply radiological evidence of medical abnormality from a doctor or speclatlst.
Mental or nervous disorders including stress and related conditions - unless your condition is diagnosed by a specialist and needs a
continued course of treatment.
We will not cover unemployment:
If we believe you knew that you would lose your job at the start of the policy whether you had official notice or not.
• Ifit results from you resigning. retiring, taking voluntary redundancy or being dismissed for misconduct.
After the end of a fixed-term contract unless you have either been employed by the same firm for at least 2 years or are on a contract
of at least 12 months which has been renewed at least once, or were originally employed on a permanent basis by the same
employer but were transferred to a fixed-term contract without a break in employment.
If you are self employed unless you can provide proof that you have ceased trading because you can't find enough work to cover
your reasonable business and living expenses.
If you are not registered for a Job Seeker's Agreement.
Claims during the Special Offer Period:
If you become unemployed or unable to work due to accident or sickness during the Special Offer Period, no payment of benefit will
be made. If you are still unemployed or unable to work due to accident or sickness at the payment start date, valid claims will be paid
subject to the waiting periods shown above starting at the payment start date.
Early termination of loan
If you decide to repay your loan after the payment start date but before the final repayment date, your cover under the policy will end. You will be
entitled to receive a rebate of premium against your agreement settlement figure but it will not be a proportionate amount of the premium you
originally paid. As an example, if you have a 5 year loan and you repay it after making 36 monthly repayments. you will receive 5.96% of your
premium as a refund. Please refer to the ·Ear1y Settlement - Refund of Premium" section of your Policy Document for more information.
Duration of Policy
The term of the policy is the same as the term of your loan. The policy is designed to cover your monthly loan repayments so you do not need to
review your level of cover in respect of the credit agreement to which this policy relates. Please note your cover will end when you reach age 65 . ..' Right of Cancellation
You have the right to cancel your policy during a period of 30 days either from the day of purchase of the contract or the day on which you
receive your policy documentation. whichever is the later. A full explanation of your cancellation rights can be found in your policy document.
How to Claim
Telephone us on 0870 9099081 for a claim form (all calls are rec?rded for training. compliance and claims purposes).
Open +Direct Retail Services Limited
Now the claim for the PPI was as follows
1) Both my self and my partner were and still are self employed so we never take out PPI as it rarely pays out
2) IF we had wanted to take the PPI out the cost far out weighed any benefits we would receive - therfore we wouldnt take it out
3) We were not told we were getting PPI
4) We did not tick the boxes for PPI - although our signature is in the box
5) We received no advice about PPI, its cost or benefits.
6) We were not advised if the PPI was suitable for our medical conditions (i have arthritis in my hip)
7) We did not receive any policy details of the PPI
----
so Creation are saying this was sold on a non-advised basis -- i am at a loss as to what that is???????
they state we clearly ticked and signed where applicable - the signature is defiantely in the boxes BUT we certainly did not tick any boxes as we NEVER take out PPI
They state that the policy was valid for us however in the documents they have included the exceptions state
If you are self employed unless you can provide proof that you have ceased trading because you cant enough work to cover your reasonable business and living expenses.
which contradicts what they say in their letter
" I can therefore confirm that you were fully eligible for this Life,
Accident. Sickness and Unemployment cover as you were self employed, aged under 65 at the
scheduled policy end and a UK resident"
also in the documents they have sent the policy says
We will not cover an accident or sickness which results from:
Pre-existing medical conditions - which again means that the policy would not pay out.
Also the land of leather key facts documents they sent us says we will have to pay nothing for their services but we will receive a quotation for any insurance policies - we didnt get a quotation
also the land of leather 'key facts' they have sent us is dated January 2005, we bought the products in January 2006!!!. (the key pages are the ones which include the exceptions)
sorry for the long post but im a bit stuck as where to proceed from here
I am in the process of trying to claim back PPI from Creation Finance.
I have requested and received all the documentation from creation and have submitted my complaint regarding the PPI. We received a letter today.
I write in relation to your complaint regarding the above credit agreement and your Payment
Protection Insurance Ippl) policy.
I have now had the-opportunity to review your complaint in full, and so I would like to confirm
the following in final response.
Firstly, I can confirm that this policy was entirely optional and sold on a non-advised basis.
Therefore, you were issued the following documentation prior to your acceptance of the
proposed Payment Protection and the execution of your credit agreement as a whole:
• An Initial Disclosure Document that describes the financial services offered;
• A Policy Summary outlining the benefits. limitations and exclusions of the cover;
• A Statement of Price which outlines the costs of the product;
• A Statement of Demands and Needs which indicates how it fits your needs and that no
advice or recommendations were given.
The information provided is that required by the Insurance Conduct of Business and must be
provided before the contract of insurance commences. I can therefore confirm that the
requirements have been satisfied by the retailer at the point of sale. Please find enclosed
copies of this documentation for your reference. Due to the non-advised nature of this sale,
the onus was on you to thoroughly review the information you had been provided to ensure
your full understanding before making any decisions on whether to continue; a fact that is
further affirmed under point three of the Initial Disclosure Document, which states that the
customer must make their own choice on how to proceed.
The level of cover was determined systematically based upon the information supplied during
your main credit application. I can therefore confirm that you were fully eligible for this Life,
Accident. Sickness and Unemployment cover as you were self employed, aged under 65 at the
scheduled policy end and a UK resident. As no advice was imparted during the sale there was
no requirement for the sales representative to either discuss any alternative policies available
elsewhere on the market, explore the details of any existing cover you may have already had in
place or assess any aspect of your medical history. It was your responsibility as the customer
to determine your own suitability for the proposed insurance based upon your individual needs
and requirements, having had the opportunity to consider the necessary documentation
beforehand.
You maintain that the key terms and conditions of this cover were not made sufficiently clear
prior to your acceptance of this; in particular the costing. However, should you refer to the
second page of the enclosed Policy Summary, the original copy of which was issued to you at
the initial time of purchase, you will note that a Statement of Price is given. This confirms the
total premium payable, plus the individual amount of interest attached to this, which could
then be cross referenced with your pre contract information document to obtain the proposed
total monthly outgoing to Creation Consumer Finance Limited [formerly known as Open +
Direct! inclusive of PPI. Should you have been dissatisfied with any of this information, you
were fully entitled not to proceed with the product in question, or the credit agreement as a
whole.
Please find enclosed a copy of your signed credit agreement document, where you will note
that you have clearly ticked and signed where applicable to confirm your wishes to proceed
with this policy. Shortly following this, the insurance administrators then ~sent the full details
of the cover that was in place. This reiterated the full terms and conditions of your policy,
including the cancellation rights, giving you a further opportunity to opt out of this should you
have wished.
Due to the above, from the documentation provided and the procedures followed, I can confirm
that the requirements of a non-advised sale have been fully satisfied, and y~ur Payment
Protection Insurance has been activated appropriately. This now finalises my investigations
into the matter and any future correspondence should be referred to the Financial
Ombudsman Service: South Quay Plaza, 183 Marsh Wall, London E14 9SR. Any complaint must • be made within six months of the date of this letter. Please refer to the enclosed Financial
Ombudsman Service leaflet for further information.
Yours sincerely
Emma Crozier
Complaints Advisor
keyfacts
Open + Direct CreditCover
Life, Accident, Sickness and Unemployment Payment Protection Insurance
Pollcy Summary
• t ;
This is a summary of the policy and does not contain the full terms and conditions of the cover, which can be found in the Open + Direct
Creditcover policy document. It is important that you read the policy document carefully when you receive it.
Name of the Insurers
This insurance is underwritten by Norwich Union Insurance Limited whose registered address is, 8 Surrey Street, Norwich, NR1 3NG for all
unemployment cover and for disability cover on credit agreements up to 59 months and Norwich Union Life & Pensions Limited whose
registered address is, 2 Rougier Street, York Y090 1UU for all Life cover and for disability cover on credit agreements of 60 months.
Ty'pe of Insurance and cover
The Creditcover Credit Protection Insurance policy is designed to protect your credit agreement. The policy will provide benefit in the event of
your death. It will also pay your loan repayments if you are made unemployed or unable to work because of sickness or an accident at any point
after the payment start date.
Significant features and benefits
Your policy includes the following significant features and benefits, which are explained fully in your policy document:
If you are unable to work due to an accident or illness for more than 14 days in a row (the waiting period) at any point after the payment
start date, on day 15 we will pay one-half of the monthly benefit. If you remain unable to work for a further 15 days then on day 30 we will
pay the remaining half of the monthly benefit.
• At the end of each complete and continuous 30 days after this that you are unable to work due to accident or illness we will continue to pay
the full monthly benefit.
If you are made unemployed at any point after the payment start date. we will pay unemployment benefit after 30 days (the waiting period).
On day 31 we will pay one monthly benefit. '
We will continue to pay unemployment benefit for each complete 30 day period that you remain unemployed up to a maximum of 12
payments for anyone claim during the insurance period.
• If you die, we will pay the outstanding balance at the date of your death up to a maximum of £50,000.
If you are in paid work for at least 16 hours per week and are aged over 18 and will be under 65 when your loan is due to be repaid, are
resident in the UK and are first named on the finance agreement, you are eligible for cover under the policy.
Significant exclusions and limitations
Your policy excludes some situations. These generally involve anything you already know about or that ;s caused by illegal or deliberate acts on
your part or that is caused by war, national conflict or similar risks. Please refer to the Disability exclusions, Unemployment exclusions and
General exclusions sections of your policy document for full details but the most significant are outlined below.
We will not cover an accident or sickness which results from:
Pre-existing medical conditions. This is any medical condition which you know about when cover starts or you've seen a doctor about
in the 12 months before laking out the cover which persists or retums during the first 24 months of your policy.
• Pregnancy_or..cbildbirth - 'unless tnere hav.e been medical compllcatons, _._- -
• Back conditions - unless you supply radiological evidence of medical abnormality from a doctor or speclatlst.
Mental or nervous disorders including stress and related conditions - unless your condition is diagnosed by a specialist and needs a
continued course of treatment.
We will not cover unemployment:
If we believe you knew that you would lose your job at the start of the policy whether you had official notice or not.
• Ifit results from you resigning. retiring, taking voluntary redundancy or being dismissed for misconduct.
After the end of a fixed-term contract unless you have either been employed by the same firm for at least 2 years or are on a contract
of at least 12 months which has been renewed at least once, or were originally employed on a permanent basis by the same
employer but were transferred to a fixed-term contract without a break in employment.
If you are self employed unless you can provide proof that you have ceased trading because you can't find enough work to cover
your reasonable business and living expenses.
If you are not registered for a Job Seeker's Agreement.
Claims during the Special Offer Period:
If you become unemployed or unable to work due to accident or sickness during the Special Offer Period, no payment of benefit will
be made. If you are still unemployed or unable to work due to accident or sickness at the payment start date, valid claims will be paid
subject to the waiting periods shown above starting at the payment start date.
Early termination of loan
If you decide to repay your loan after the payment start date but before the final repayment date, your cover under the policy will end. You will be
entitled to receive a rebate of premium against your agreement settlement figure but it will not be a proportionate amount of the premium you
originally paid. As an example, if you have a 5 year loan and you repay it after making 36 monthly repayments. you will receive 5.96% of your
premium as a refund. Please refer to the ·Ear1y Settlement - Refund of Premium" section of your Policy Document for more information.
Duration of Policy
The term of the policy is the same as the term of your loan. The policy is designed to cover your monthly loan repayments so you do not need to
review your level of cover in respect of the credit agreement to which this policy relates. Please note your cover will end when you reach age 65 . ..' Right of Cancellation
You have the right to cancel your policy during a period of 30 days either from the day of purchase of the contract or the day on which you
receive your policy documentation. whichever is the later. A full explanation of your cancellation rights can be found in your policy document.
How to Claim
Telephone us on 0870 9099081 for a claim form (all calls are rec?rded for training. compliance and claims purposes).
Open +Direct Retail Services Limited
Now the claim for the PPI was as follows
1) Both my self and my partner were and still are self employed so we never take out PPI as it rarely pays out
2) IF we had wanted to take the PPI out the cost far out weighed any benefits we would receive - therfore we wouldnt take it out
3) We were not told we were getting PPI
4) We did not tick the boxes for PPI - although our signature is in the box
5) We received no advice about PPI, its cost or benefits.
6) We were not advised if the PPI was suitable for our medical conditions (i have arthritis in my hip)
7) We did not receive any policy details of the PPI
----
so Creation are saying this was sold on a non-advised basis -- i am at a loss as to what that is???????
they state we clearly ticked and signed where applicable - the signature is defiantely in the boxes BUT we certainly did not tick any boxes as we NEVER take out PPI
They state that the policy was valid for us however in the documents they have included the exceptions state
If you are self employed unless you can provide proof that you have ceased trading because you cant enough work to cover your reasonable business and living expenses.
which contradicts what they say in their letter
" I can therefore confirm that you were fully eligible for this Life,
Accident. Sickness and Unemployment cover as you were self employed, aged under 65 at the
scheduled policy end and a UK resident"
also in the documents they have sent the policy says
We will not cover an accident or sickness which results from:
Pre-existing medical conditions - which again means that the policy would not pay out.
Also the land of leather key facts documents they sent us says we will have to pay nothing for their services but we will receive a quotation for any insurance policies - we didnt get a quotation
also the land of leather 'key facts' they have sent us is dated January 2005, we bought the products in January 2006!!!. (the key pages are the ones which include the exceptions)
sorry for the long post but im a bit stuck as where to proceed from here
Started late August 2012 .....Wins so far 'The Big C season 2':£5 light bulb voucher x 2: Scatterbrainz comp : art blocks : moons album d/l : The Lucky One dvd- win : Cabin in the woods goodies : Maoam bags x2 :Your Sister's Sister DVD: wooden satellite:Kayak Book ratio 13/7450
0
Comments
-
Send it to FOS, put why you feel you were mis sold this PPI and ask them to look at this as you disagree with the reasons for rejection, enclose correspondence from Creation.0
-
Re. jonnybrussell -
I have recently received a very similar response to my complaint to Creation Finance, (from Emma Crozier). I am angry that I was first sold a PPI (which was not explained to me!) when purchasing a lounge suite in 2004. Then after four years of never missing a payment, in 2008 I became unemployed and desperately needed to contact Creation and/or make use of the PPI. I could do neither - contact them, as I had absolutely no documentation or correspondence from them and I wasn't even sure of who they were or how to get hold of them. Their website at the time had NO contact details and I had never received documents about the PPI (or who it was insured with!). Without funds to continue, I was forced to stop the payments in 2008 and without any means to contact Creation Finance (or whoever they were called at the time?), I expected them to contact me. They never did, until only a few moths ago this year (2012!) and that was only to say they had handed over the 'outstanding debt' to another 'finance company - Lowell', (who had already been in touch with me two months earlier)
So now corresponding between both claimants, I am getting some ridiculous, quite illogical and completely unsatisfactory claims and demands. All of which fail to answer my core complaint that if I had a PPI in place (albeit reluctantly), why was I not able to activate it for the reason it was supposedly in place for!
I might add that I also recently made an offer to settle the total amount owed back in 2008 . . . and have had NO response to or acknowledgement of my offer.
Further to the letter from Creation, very similar to that received by 'jonnybrussell', which I again contested as unsatisfactory and unanswered, I have today received another from Emma Crozier of Creation Finance, (unsurprisingly) saying they "stand by their decision" . . . whatever they mean by that??
I did send copies of 'Creation', 'Lowell' and my correspondence to the Financial Ombudsman Service about two weeks ago and am waiting on a response from them...
I might add that I made repeated requests and pleas for documentation, statements, PPI details etc etc.... and ONLY when I gave them the original account details that I held, did they then 'manage' to locate and send me a copy of the original agreement. But they also made some outlandish claims about how the sale (in 2004!) was conducted and what documentation was 'confirmed' as sent to me. . . If they could not locate my account, they clearly are not positioned to make the other claims!
I am simply appalled by the 'modus operandi' of Creation Finance (or lack of!)0 -
I have had a very similar (unacceptable) response from Creation Finance - see my (also lengthy) message...0
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