Can you claim back for a loan that was mis-sold not just the PPI on it?

Em7

Hello, my father in-law was sold a loan some time ago (around 2005 without getting the paperwork out to look) to cover the cost of having his windows fitted. he was talked into having the finance option, with the PPI on it also, as the salesman promised him money off the windows (although over the term of the loan he ended up paying over double the price of what the windows cost) he was told he would not be eligible for this discount unless he took the finance and insurance. He had the money available to pay for the products in his bank. so I was just wondering is there anyway we could claim for this loan being mis-sold he was self employed at the time and during the term of the loan he retired.

Tixy

It does sound like he likely has a case for missold PPI, but not for the loan.

Loans are not sold, they are applied for by the applicant and either approved or not by the potential lender.

I imagine the loan was provided for by a different company to the one that fitted the windows, the loan company therefore only received and accepted his application and were not involved in the price he was paying for the windows, or any potential discount.

He could have tried either negotiating with the window fitting company for the same discount but paying by cash at the time, or at a push possibly even considered a complaint to them afterwards.
Often people get around this sort of deal by agreeing to take out the finance but then repaying it off after a month or so with the cash he had in the bank.

He may have paid significant interest on the loan he took out, but he would have hopefully earned some interest on the cash in the bank he didn't use on the window fitting, so that will at least offset some of the cost of the interest for him.

dealer_wins

Short answer.. NO

OneLife_OneShot

I really don't get how a loan he wanted was mis sold?

sami456

Thats really bad. Hope he can at least get back the PPI.

Em7

Thanks for the replies. he didn't actually want the loan (conisme) he did have the money for the windows, but the Anglian rep talked him into getting it (having worked for them in the past I know how some of the reps can be) with the offer of the lower price on the windows and probably advising of what the small monthly payment would be and how he could do other home improvements with the money he already had, who knows, but unfortunately being naïve he signed into the loan. Thought it was a long shot but worth an ask, by the looks of it I should be able to get the money back for the PPI so at least that is something. it will just have to be one of lifes lessons... when things sound too good, there is normally some sort of catch!

moohound

This happened to me as well, they really pushed the finance and offered a discount if we took it out, I think this is unlawful now to give discounts on the condition of taking finance.

I am having the PPI looked into at the moment.

SeanG79

moohound wrote: »

This happened to me as well, they really pushed the finance and offered a discount if we took it out, I think this is unlawful now to give discounts on the condition of taking finance.

They offer the discount via the finance route as they are earning commission via this route. The sales rep will also inevitably be earning commission on all the finance agreements BUT without the finance commission earned on the agreement the Glazing company cannot pass part of that commission earning on as a discount to the customer (kinda catch 22 although no doubt the finance route probably earns the company more than what they offer as a discount to the customer).

The Glazing company most likely run the risk of commission "clawback" on deals settled within the 1st 12 months or on deals that default in the 1st 12 months so I would guess they would take that into account when calculating the discount.

Ultimately it is still the customers choice to decide whether or not it is in their interest to take out the finance...

andy.m_2

Take loan, wait a week, pay off loan with cash in the bank.

Sorry but it's a simple thing that people do day in day out to get best deals.

opinions4u

They give a cooling off period for a loan agreement signed in your own home.

But it's only a few days. Not the best part of a decade.

_Andy_

"he didn't actually want the loan" - erm, why not just say no then?