BlackHorse PPI Pro rata rebate

clover1201

Hi Guys

I had aoriginally worte about this before but cant find the thread and was wondering if someone could help me out.
Basically I had a number of loans with black horse over a 3 year peroid. There were 3 loans in total each one was consolidated into another.
I honestly had no idea that PPI was added to these loans and was quite shocked when I had found out. I had a loan with another company in which we had the ppi talk so therefor I was aware it was on my policy but with these there was nothing, no discussion, no asking me what I did (was not covered with sickness but still would have been nice to have been asked) no means form no nothing basically. So I lodged a complaint. I have put their response below and was wanting advice on it.

Our Assessment

As part of an initial review of your complaint, I was able to identify that the ppi policy that you have complained about was associated with a loan which was part of a chain of loans with us. The loans in this chain were settled early and refianinced by a subsequent loan, these loans are listed below:

Details of 3 loans with start dates


When assessing your complaint, I have fully considered wherther you were eligible for the policies, whether the policies were suitable for you and whether we provided appropiated information in relation to your PPI policies when you took them out. Having completed all of these steps, I also looked to ensure that we acted fairly towards you in relation to the sale of these PPI policies, taking into account any other relevant circumstance or information that may be available.

As a result of this, I am satisified that there were no issues with the sale of the PPI attached to the above loans. However, due to the way we calculate the rebate due on your settlement or cancelled these policies compared to what you would have paid if they had not been single premium policies.

Due to these additional costs, your borrowing for the subsequent loans would have also been higher than you needed it to be, which in turn increased the size of the monthly payment and also the attracted additional interest.

Our Offer

As a final response we are able to offer you a payment of £595.85.

This represents a refund of the extra amount paid by you at the time these policies were settled or cancelled and the additional amounts paid by you due to increased borrowing on your subsequent loans. We ahve also applied additional interest at 8%.


Refund of additional premiums (im guessing this is the interest I paid extra due to having the policy) £192.07

Excess Balance and interest £217.30

Ineterest @ 8% 233.10

Less tax -£46.62

Total £595.85




So my problems is... I was never told about these policies!! Would they have added it because the prior loan had it (even though I didnt know about that either) I know that I had signed for this but I thought I was only signing the loan paperwork! I know I wouldnt have taken it out especially for the last 2 (I only had the 2 loan for 1 month before consolidationg it to loan 3) because my circumstances were so dier and it was a last ditch attempt to save them. I only paid loan 3 for 3 months before going to reduced payments then after 11 reduced payments I settled the loan fully with some money my Fiancee lent me so we didnt have it over our heads going into the marriage. Due to that I know I would never had agreed to an extra £1000 being added to the loan. Like I said there was no discussion of it and I was never given any apaperwork. Im quiet cross about it because it was such a horrible time in my life and these people (to me) took advantage of it.

My question is (because I cant prove that they didnt ask me about this and that they didnt give me any paperwork) do I take the offer or do I stand a good chance of getting the full refund of all my payments if I go to the Ombudsman?

Any help would be appreciated!

-taff

You paid the second loan off early, and paid the third loan off early. They're offering you exactly what they have to which is full refund of your actual payments, unhless you can prove you paid more [and only in PPI, not in interest on the loan]

clover1201

yes i can prove i paid more. They are not offering me any ppi premiums refund, they are simply offering me the extra interest and money that was carried over from consolidating, also the 'charge' for consolidating. They are not offering and premium refund and I have also checked that this is the case with them directly.

dunstonh

So my problems is... I was never told about these policies!!

What evidence do you have to support that allegation? They have looked at their evidence on file and found no wrong doing and have rejected your complaint. What do you have to support your allegation?

I know that I had signed for this but I thought I was only signing the loan paperwork!

Problem is that you signed the paperwork and the figures would have been on there.

Due to that I know I would never had agreed to an extra £1000 being added to the loan.

Each time you repaid the loan early, a relatively pro-rata refund would have been made on the PPI. So, you would have ended up paying a fairly small amount given the short timescale on these.

My question is (because I cant prove that they didnt ask me about this and that they didnt give me any paperwork) do I take the offer or do I stand a good chance of getting the full refund of all my payments if I go to the Ombudsman?

You wont get the full payments as there would have been a rebate each time you repaid early. They are making a refund as their rebates were based on single premium and not monthly premium. They are giving back the difference on the basis of what it should have been had it been monthly premium.

The FOS do not like single premium. However, the redress rules do allow for recalculation of a single premium into monthly premium basis. So, from a calculation point of view, they appear to have given you a fair offer to correct the biggest mis-sale reason. That being single premium. However, they do not agree with your unprovable reason. So, unless you have anything or the documentation hints to what you are saying as being correct, you wouldnt expect success. Unprovable verbal allegations rarely succeed. They need another failing to work.

-taff

Then it's up to you. If you go to the onbudsman, they may well uphold your complaint and ask for a refund in full because you paid single premium, and that will take 12-18 months. They may not.

clover1201

I know im between a brick and a hard place with proving it. I just feel cross about it. I honestly had no belief and I wonder if they just added it becuse it was on the prior ones. I guess the question is, giving the circumstancial evidence to support my claim ie financial desperation and then having to go to reduced payments. Again those circumstances (because it was all comsuming at the time) show me that the conversation didnt happen. I honestly know that if I was told that they wanted to add £1000 to my account, that I would then have been charged interest on it, that it would cost me £34 per month and that I didnt have to have it (which should have been the coversation) I would never have agreed to it. Will that hold any weight with the FOS. Also if I go to the FOS is there a chance I could loose the original amount as they are offering the single payment recalcualtion?

Thanks for you help with this

dunstonh

I guess the question is, giving the circumstancial evidence to support my claim ie financial desperation and then having to go to reduced payments. Again those circumstances (because it was all comsuming at the time) show me that the conversation didnt happen.

Or the counter argument being that the evidence points to someone who was in financial difficulty and couldnt afford not to insure themselves.

I honestly know that if I was told that they wanted to add £1000 to my account, that I would then have been charged interest on it, that it would cost me £34 per month and that I didnt have to have it (which should have been the coversation) I would never have agreed to it. Will that hold any weight with the FOS.

The problem with unprovable allegations is that they are unprovable. You have no way of backing up that allegation.

However, they have in part agreed by recalculating the premium as if it was monthly and not single which is why they are refunding the difference.

Also if I go to the FOS is there a chance I could loose the original amount as they are offering the single payment recalcualtion?

No. This is not a goodwill offer but a correction to monthly premium.

clover1201

Ok, so just to make sure I get it (cause im a bit stupid) if I go to the FOS i will not loose the £595 that has been offered. That will stay and then im just hedging my bets on the rest?

dunstonh

clover1201 wrote: »

Ok, so just to make sure I get it (cause im a bit stupid) if I go to the FOS i will not loose the £595 that has been offered. That will stay and then im just hedging my bets on the rest?

You wont lose the £595 as that redress method follows FSA/FOS guidelines.

However, you will not be paid it until after the complaint by the FOS gets reviewed. It will either by £595 or whatever it is if your complaint is upheld (but it wont be the full premiums you think because there has already been refunds due to early repayment). The current FOS queue is about 12-18 months.