PPI Reclaiming discussion

GeCon

Where do I send my second letter to? My local branch where I sent the first one to or the address on the letter from them?

Thanks.

Tommy_5_Bellies

After all the euphoria of successfully claiming back the PPI from Worst Plus I've been brought back to earth with a MASSIVE CRASH:eek:

I wrote to them to get a full and final settlement figure of the loan and to my disgust I STILL owe more than I borrowed:mad:

Even with £17,000 PPI and the related interest paid off the outstanding balance, after paying, on average £510.00 per month (equivilent to roughly £24,000) I still owe £3,000 more than I borrowed. I contacted them to ask how this could be and was informed that because my loan was taken out before 2005 it came under the '78 Rule'

My questions are:

What is the 78 rule?

Can I do anything about it?

Where do I go from here?

cheers

Tommy 5 Bellies

Elsie2_2

gt568 wrote: »

Yes, threaten them with court action.

Will do, thanks.

Soapbox_2

First time poster, but have been very impressed with the site and have already put my credit card debts in order following Martin's advice - really pleased.

I have recently moved on to looking at my current loan and the Payment Protection Policy. I wrote a letter to cancel rather than requesting a full refund (perhaps £400 lost but I don't believe it was miss-sold). However, although they have agreed to cancel the PPP - they have advised that this will mean setting up a new agreement at the same APR but without the PPP - Fine I thought. When I called to check, they advised that part of setting up the new agreement would be to perform a credit check!!!

I have a feeling that it is only because their system performs this check automatically when entering a new account rather than a procedural need.

Can anyone advise me - as I'm hoping to apply for a mortgage shortly I really would rather not have yet another check against my record. Any help/guidance would be very greatly appreciated...

gigsy

Tommy_5_Bellies wrote: »

After all the euphoria of successfully claiming back the PPI from Worst Plus I've been brought back to earth with a MASSIVE CRASH:eek:

I wrote to them to get a full and final settlement figure of the loan and to my disgust I STILL owe more than I borrowed:mad:

Even with £17,000 PPI and the related interest paid off the outstanding balance, after paying, on average £510.00 per month (equivilent to roughly £24,000) I still owe £3,000 more than I borrowed. I contacted them to ask how this could be and was informed that because my loan was taken out before 2005 it came under the '78 Rule'

My questions are:

What is the 78 rule?

Can I do anything about it?

Where do I go from here?

cheers

Tommy 5 Bellies

Hi Tommy. Was looking at this earlier, it seems complicated but it looks like they get you by the short and curlies every time. here's the link to it

http://www.moneysavingexpert.com/loans/calculate-loan-interest

I'm sure someone here will be able to guide you thru it.
Nothings stright forward is it? they just love to tie us up in knots!!!

Tommy_5_Bellies

Thanks Gigsy

Just when you think something good is happening someone spoils it! I'll give the link a go.

cheers

Tommy

Tommy_5_Bellies

Thanks Gigsy

Just when you think something good is happening someone spoils it :mad:
I'll give the link a go. I've been looking at the Consumer Action Group site and there were some posts where people had challenged the 78 rule and won. Going to look into it and get back to people when I get some info.

cheers

Tommy

Tommy_5_Bellies

Hi Gigsy

GOOD GOD.....no wonder people don't about or how to calculate interest!!

So if my loan was for 300 months do I work backwards from 300 down to 1?

thanks

Tommy

Maggie_Holmes

cocker100 wrote: »

Hi all,

Just about finished drafting my third and final letter in First Plus. Have quoted the misrepresentation act in it. Does the following section of the letter sound ok? It's just that I haven't really had any dealings with court procedures and law before, so dont want it to sound silly!

.........................................Therefore, I believe that the single premium policy sold to me essentially made me borrow more money rather than simply pay a monthly fee for insurance. I also believe that it should have been made clear to me that the policy generated large profits for First Plus at my expense. You clearly failed to do this and in so doing have failed in your "Duty of Disclosure" to me. This is because insurance contracts are basically contracts of the utmost good faith. This imposes on you a duty to disclose all material facts because one party, First Plus in this case, is in a strong position to know the truth. Your failure to disclose these facts to me is misrepresentation at common law under the Misrepresentation Act 1967...............................................


Does this sound ok?

All advice greatly appreciated.

Cliff.

Hi Maggie here before I can go down the same road I have to wait for the settlement figure to come thru because as I have said before I am re-mortgaging, but Tiggrae has suggested the Misrepresentation Act when I do start my claim. So I will look out to see how your claim is going Cliff, because I think I will need some help.

sanmiguel_2

I need some help please from some of you clever souls

I have received a reply from my original letter to the Co-Op concerning mis-sold PPI denying that I have a case on the basis that....

PPI is always optional and their practice is always to offer it as such - this is at odds with the hard sell I was given and the definite inference that the outcome of my application depended upon the taking of PPI,

that I had 28 days cooling off period - not disputed

and in addition the terms of insurance allow cancellation at any time outside of the cooling off period. This I do dispute as I can't find any reference in the terms and conditions.

They have however offered to cancel the policy and reduce the amount oustanding on the original loan by a 'partial refund' of the PPI calculated from the date of the original complaint (£1561.14). I would have to take out a new loan however at the original interest rate of 7.202% (APR 7.070%)

My problem is that I don't understand why only a partial refund and how they have arrived £1561.14, ie

The loan was for £15500 over a term of 83 months.
The Insurance was a lump sum of £5155.65 which was added to the original sum.
Interest then added to the total of £5614.61 making a grand total owed of £26270.26

In my simple mind I calculated that the monthly cost of the PPI is £62.11 (5155.65/83)

37 payments have been made which equals £2298.07 and 46 months are left to run on the loan which equals £2857.06

The full and final settlement of partial refund being offered is £1561.14 which I must accept by 14.01.08

As you can see, it doesn't compare to my calculations and I am wondering whether I am being completely dim or they are stitching me up. Any help would be greatly appreciated.

Many thanks