New Court Case for Chain Loan PPI

Helen_R

Hi there,
I made a complaint to RBS in May about miss sold PPI, I have been successful on two but another 3 formed a loan chain, I was asked for another four weeks by RBS in conection with this loan chain as they were gathering further information, the loans were taken out 2005, 2006 and 2007. The four week were up on 17/8/2016 and as of today not heard anything from then so I phoned to to ask what was happening only to be told there was a case in Court about a similar claim to mine and there were loads of claims in the same situation and I would not hear anything until the Court case was finished which would be the end of the month. Has anyone on here heard about this case as I was not told anything about it in letters or previous phone calls. Thanks to anyone who reads this post :rotfl:

WatchMan

They're referring to this case: https://www.fca.org.uk/news/statement-plevin-paragon-personal-finance

The case was concluded in 2014. However now the FCA, FOS and industry as a whole have to decide how this affects PPI complaints.

Until then, it means that complaints affected by the judgment will not receive a final answer (whether that be from FOS, or the business complained to).

This only affects cases which have not ben upheld for other reasons.

Nasqueron

It is likely to be the Plevin ruling they are talking about. This is where your PPI was NOT miss-sold i.e. you won't be getting a refund on it, but where there may have been an excessively high commission paid which you would get a refund on.

Plevin vs Paragon Personal Finance Ltd is a case where, if a PPI seller didn't disclose to the customer they had a large commission from the provider it was considered unfair. Here, Susan Plevin discovered that 72% of her PPI premium was actually going to the lender and broker

With this it's actually with the FCA and will be until the consultation ends 11/10/16 - it could well cost the finance industry a load more but as I said, it is only applicable in cases where the PPI will not be refunded

Helen_R

Thanks for your reply, there is a bit more to the claim than I first wrote. I defaulted on the loan but still had to pay for and I am still paying the PPI and loan as I'm now with Step Change. Two years before the loan would have finished I had a major illness but could not make a claim on the PPI as I had defaulted on the loan, which means I have payed over £7000 for a PPI I could not use. The only reason I took out the loan was because the Bank kept on at me that it would be the best thing to do as I kept going overdrawn and to put all my debt together, I got phone call after phone call and I just caved in, it just got me further into debt as I couldn't afford it.

Nasqueron

It's a fairly complicated one that would be difficult to explain without someone going over all the details. Did they confirm which of the second three loans (which you indicated were independent from the two you have had a refund on) actually had PPI?

When you have a loan with PPI and get a new loan to pay off the old one and increase the borrowing the PPI element (assuming the PPI was single premium and build into the loan) is basically paid off as well as the loan with a pro rata rebate. Though a new policy could be started on the next two loans or on the second but not the third, its difficult to tell. Were you paying one fixed monthly sum or two / did you complain about single premium PPI?

It gets more complicated with the default as that seems to have stopped the policy even though with single premium you effectively get charged the whole lot up front and interest on that too

Either way, if they are saying it's pending Plevin they will not be paying you a PPI refund as Plevin just relates to the commission on the PPI which is part of the premium you pay (logically of course if you had a repayment of all the PPI then the commission part of it would have been repaid as well)

Helen_R

Thanks Nasqueron for your reply, the PPI was on the 3 loans of the loan chain apparently. I paid the monthly payments in one amount as it was added to the loan at the beginning. I still feel I was backed into a corner by Natwest to take out the loan and the PPI, I was never asked if I got paid while I was off work which I was for 16 weeks and was never told I would be chaged interest on the PPI or that I would not be able to claim if I defaulted or the fact I would still have to pay the full amount even though I could not claim. All my circumstances were the same for the PPI they paid out on and I couldn't even remember having those loans in 1998 and 2000. I don't understand how I had a letter from them on 20th July saying I would have a final decision in 4 weeks as they were gathering information in relation to my case and now told it's on hold because of a court case. I was also told in a phone call in July it was taking longer as there was an internal investigation into my PPI. They did not mention it was the Plevin case just a case going through the courts.

Nasqueron

I'm surprised the single premium PPI claim wasn't automatically upheld especially if it was on each one because it's generally a guaranteed refund due to the way it was miss-sold

Plevin is the only ongoing case relating to PPI that isn't resolved since the banks lost the original PPI case

dunstonh

They did not mention it was the Plevin case just a case going through the courts.

Plevin has been through the courts, come out the other end but the FCA are still pending their decision on what to do about it. They have published their intentions for consultation but complaints that may be affected by this are put on hold.

It is the only court case that requires a complaint to be put on hold. Also, Plevin only affects rejected complaints. Not upheld (as mentioned higher up). There are no other cases in progress that impact on PPI complaints.