What does this mean ?

AppleDap

Hi
I've had a letter from my bank saying I may have been misssold PPI and not quite sure what they mean.
In the letter it says it has reviewed the way they sold ppi etc and says

We believe you may have been affected by the following issues :-

We may not have established whether you were likely to repay or refinance your loan before the end of the loan term. The PPI product you had did not give you a pro-rata refund if you paid off the loan early. This means, for example, that if you cancelled half way through you would get back less than half of the premium you paid if we had discussed this with you, we may not have recommended you take out this product.

If your loan was taken to repay existing debts we may not have considered whether the cost of the cover or policy terms made it appropriate to recommend that you purchase PPI. if we had discussed this with you, we may not have recommended you take out this product.

What exactly are they trying to say ? I know I'm being very thick about this but I can't get my head around it.

Thanks

[Deleted User]

AppleDap wrote: »

What exactly are they trying to say ?

They are inviting you to complain about your PPI if you feel it was mis-sold to you.

amersall

All it means is they "may have" mis sold you PPI.
Do you have any info regarding this loan? is so, let us know and we can help you make a claim if you were mis sold.

If you have no info then call the bank and ask what credit this letter covers.

dunstonh

I've had a letter from my bank saying I may have been misssold PPI and not quite sure what they mean.

it is a CCL.

They are required to tell you that you had PPI and some examples of mis-sale reasons that may apply and invite you to complain if you feel you have reason to complain.

AppleDap

Moneyineptitude wrote: »

They are inviting you to complain about your PPI if you feel it was mis-sold to you.

I thought as much. Thank you.

AppleDap

dunstonh wrote: »

it is a CCL.

They are required to tell you that you had PPI and some examples of mis-sale reasons that may apply and invite you to complain if you feel you have reason to complain.

Hi and thanks for your reply. I don't know what a CCL is I'm sorry.
It doesn't seem like a standard letter, it seems to be tailored to me as its the examples I'm not sure that they mean.
But your probably right they are examples.
Thank you

AppleDap

amersall wrote: »

All it means is they "may have" mis sold you PPI.
Do you have any info regarding this loan? is so, let us know and we can help you make a claim if you were mis sold.

If you have no info then call the bank and ask what credit this letter covers.

Hi Amershall. Thank you for your reply.
I have lots of info regarding this loan. I have phoned the bank and they were not very helpful so I dug out all my paperwork and have been trying to work it out but in the end my head is spinning.

I have had quite a number of Loans with them and lucky where I have kept most of the paperwork and bank statements.
The loan this refers to is a consolidation loan I took out in 2005. I worked this out from paperwork I had and a CIN number they have put on the letter. It would have been easier if they just used account number lol.
The loan was taken out and used to pay off another loan and cc bill I had with them and other credit card bills with other companies. The loan was for 20,000 not including the ppi and interest. I was shocked when I just looked at the agreement to see that the Ppi was 6.000 before adding the interest.
Anyway the advisor who arranged the loan recommended I take out the PPI, but at the time I had excellent sick cover with my employer. Critical illness disability and life cover wih the same bank. I also had life cover with my mortgage with a different bank plus life cover and benefits with my retirement pension through my employer.
Looking at it now the only benefit would have been if I was made redundant and that would have been only for 12 months. That works out I would be paying more per month than the loan.
Anyway. I remortgaged 14 months later and I didn't get a pro data amount back of the loan.
Also this was used to pay off a precious loan that had ppi.
Sorry for rambling

AppleDap

I also forgot to say that I was asked to take in the cc bills that needed paying as the advisor said that they had to make sure the loan was used to pay the bills and that she would do it in the bank.
The only thing about the ppi that was explained to me was how she established the suitability !!

amersall

Put the complaint in, ask them to look at all the loans that were consolidated, you had other cover in place and this was Single Premium PPI, use these as reasons for mis sell.
Single Premium PPI was in effect another loan on the original loan that you repaid to term with interest

Each loan that you repaid with the next would have got you a rebate of the PPI, the remaining PPI would have been repaid back by you out of the proceeds of the next loan, this means that apart from the rebate for each PPI you paid, the remaining PPI went back into the loan balance of the next loan.

AppleDap

Hi Amersall
Thanks for getting back to me
Can I complain about all the loans with the one questionnaire they have sent me as the loans are linked ?
Also the questionnaire sent to me seems to have some questions tailored to why they think they have misssold me and I'm unsure. Is it possible I can post up the questions for you too look at ? As I'm not entirely understanding what they are trying to say as quoted in my first post.
Many thanks

amersall

The PPI product you had did not give you a pro-rata refund if you paid off the loan early. This means, for example, that if you cancelled half way through you would get back less than half of the premium you paid if we had discussed this with you, we may not have recommended you take out this product.

This is saying about a rebate if you settled early, they also did not tell you about the remaining PPI after the rebate being put onto the next loan.

If your loan was taken to repay existing debts we may not have considered whether the cost of the cover or policy terms made it appropriate to recommend that you purchase PPI. if we had discussed this with you, we may not have recommended you take out this product.

This basically means that because you consolidated to repay other credit, including a loan, they may not have fully explained the cost of this PPI or that the remaining PPI after the rebate from the consolidated loan would go onto the next one.

This is what I said in my previous post, use the reasons for mis sell I posted and about the remaining PPI after the rebate.