GE Money - the saga continues

bodoni

Hi Forum

Brief history: I had several loans with First National/GE Money all of which had PPI. I made a complaint to them in May 2011 which they rejected on the grounds that they were not members of GISC (General Insurance Standards Council) at the time of the sales and my complaint was time barred.

I then escalated the matter to FOS who apparently set-up a team called Project Atlantic or Pacific (not sure) to investigate multiple complaints against GE Money. The outcome was a letter from FOS saying they were unsuccessful in getting GE to comply but there was a case against the underwriters of the policies and it should be pursued.

One of the underwriters was Cardif Pinnacle who I made a complaint to for policies that they had underwritten. To my amazement they upheld my complaint and paid the statutory redress.

Other loans had been administered by Bennett Gould & Partners so I made a complaint to them (with the supporting documentation) and they sent a response saying that they were acting as a placing broker and the lead insurers were AA Cassidy & Others (Syndicate 582 at Lloyds) which was now owned by The Jubilee Group Holdings and my complaint should be directed at them. It transpired that all complaints relating to mis-selling were being handled by Direct group on their behalf. I sent my complaint to them and they have responded by saying that they are not responsible for the sale and my complaint should be directed to Bennett Gould.

So what next? Precedent has been set by Cardif Pinnacle who have upheld complaints for policies they had underwritten so I know I have a case but I wanted to know if anybody else has been in a similar position and if they have got further than I have.

Any guidance, experience etc, would be appreciated.

Regards

Bodoni

dunstonh

I then escalated the matter to FOS who apparently set-up a team called Project Atlantic or Pacific (not sure) to investigate multiple complaints against GE Money. The outcome was a letter from FOS saying they were unsuccessful in getting GE to comply but there was a case against the underwriters of the policies and it should be pursued.

What the FOS should be saying is that the insurer "could" have liability. Not that there is a case. More that there may be a case.

One of the underwriters was Cardif Pinnacle who I made a complaint to for policies that they had underwritten. To my amazement they upheld my complaint and paid the statutory redress.

I have seen cases where pinnacle have accepted liability and cases where they havent. So, it is never clear until you ask them. This is why the FOS tell people to give it a try.

Precedent has been set by Cardif Pinnacle who have upheld complaints for policies they had underwritten so I know I have a case but I wanted to know if anybody else has been in a similar position and if they have got further than I have.

There is no precedent. It is a selection of variables which if come together in a certain way mean that the insurer carries the liability. If they dont come together that way then the insurer would not carry the liability.

I havent heard of Bennett Gould & partners before. So, havent a clue about them. Hopefully, someone that has will tell you how they got on.

gettinglifeback

Congrat's on your success against cardif pinnacle, could I please ask what points were made for them to accept liability, in a similar situation and are going to lodge a complaint with them after talking with the FOS today, was your agreement pre 2005, I contacted the FOS after receiving conflicting views, like yourself FOS seem to think that liability is with the underwriters especially as the broker no longer operates, very interested to hear your thoughts and points , thanks

Best wishes

bodoni

Hi gettinglifeback

I sent Cardif Pinnacle a standard letter outlining that I was (and still am) self employed at the time of the sale and that the cover would not have been suitable for me.

They sent me an acknowledgement and soon after a letter upholding my complaint. My agreements were pre 2005.

My current complaint looks like being less straightforward unfortunately and I suspect will end up being referred to FOS.

Hope this helps - good luck with your complaint.

gettinglifeback

Hi there bodoni,

Yes that helps a great deal and brings a little hope after some disappointing replies to my posts, guessing you used a broker also? is he still operating or went bust?

Thanks again

bodoni

Hi gettinglifeback

Yes that helps a great deal and brings a little hope after some disappointing replies to my posts, guessing you used a broker also? is he still operating or went bust?

Well, when I took the loans out I was not aware that First National/GE Money would be placing the PPI business with such a variation of underwriters, from what I can see from my paperwork there is:

1. Cardif Pinnacle - settled
2. Commercial Union - now Aviva - just gone to FOS with this
3. Jubilee Holdings - was a Syndicate at Lloyds - less hopeful

I am glad I kept the policy schedules as I would not have been able to trace the Insurance providers.

gettinglifeback

Hi there again ,

So First National/ G E Money used 3 different underwriters, or was it actually a broker that arranged the loans? its quite important to know if a broker was involved and if still operating, as I used a broker to find me the best available loan, who also adviced that ppi was a condition of the loan been accepted, but this broker is now not in business, can you remember who sought your loan for you and did cardif not refer to this broker, as surely you never approached cardif pinnacle yourself on taking out the agreement, sorry about all the questions , just trying to see the best angle to put across to pinnacle

thanks

bodoni

Hi again

All of the loans were set up directly with the lender, there were no brokers involved. The loans were unsecured so did not involve an intermediary acting on my behalf to find the best deal.

The insurance premiums were added to the loans and the company who underwrote the insurance was whoever First National/GE had appointed at that time (probably trying to find the best commission rate for the business).

As I have said earlier, the policies were underwritten by the companies listed.

The Jubilee Holdings one was once Syndicate 582 at Lloyds, that why I am having difficulty finding out who could be liable for any redress.

Hope that helps.

[Deleted User]

bodoni wrote: »

All of the loans were set up directly with the lender, there were no brokers involved.

This is why "comparing notes" with other potential complainants is not recommended, especially in none standard circumstances where, for example, the insurer is being accused of liability.
Every complaint is dealt with on it's own merits (or lack of them) and your cases appear to have little in common with the other user.

dunstonh

All of the loans were set up directly with the lender, there were no brokers involved.

That can make a difference as there is a tied relationship between them. A direct commercial link.

bodoni

Good evening

I am just quoting my circumstances and not suggesting for one moment that my experiences should be used as de facto guidance for anybody seeking redress with the same company.

As I am wondering what my next step should be eg, contact Bennett & Gould again etc, I posted to see if anybody could give advice accordingly. I was under the impression that this was the raison d'etre for this forum, ergo, to pool knowledge?

Dunstonh mentions that there could be a tied relationship between the lender and insurance co which in commercial terms is for mutual benefit. The fact that Cardif Pinnacle decided to settle must show some correlation.