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PPI - Paragon/Central Trust
My cousin took out a loan for 25000 pounds in may 2004 with Paragon to consolidate his debts. He was persuaded to take a PPI, which was a single premium of 5125 pounds, a total of 30125 pounds with an APR of 9.5% for 120 months at 383.37 per month.
Enclosed with the literature he received was a cashback voucher from Paragon for the full amount of the PPI on the tenth anniversary of the loan, but he has since found out that the PPI premium he paid only covered the first 5 years.
He wrote and complained to Central Trust, who apparently were responsible for the sale, but they are saying that because they were not regulated by the FSA at the time there was no requirement to verbally disclose the features, benefits or exclusions of the PPI or to provide advice surrounding the insurance. They said that they relied on the customer to make their own decision.
They further say that under no circumstances is PPI a condition of any loan and that the PPI was optional as stated on the policy summary - He is unable to find any reference to that in the paperwork they gave him! Also the company did not come under under the voluntary jurisdiction of the FOS, and they were not members of the General Insurance Standards Council.
Does my cousin have any chance of redress?
Enclosed with the literature he received was a cashback voucher from Paragon for the full amount of the PPI on the tenth anniversary of the loan, but he has since found out that the PPI premium he paid only covered the first 5 years.
He wrote and complained to Central Trust, who apparently were responsible for the sale, but they are saying that because they were not regulated by the FSA at the time there was no requirement to verbally disclose the features, benefits or exclusions of the PPI or to provide advice surrounding the insurance. They said that they relied on the customer to make their own decision.
They further say that under no circumstances is PPI a condition of any loan and that the PPI was optional as stated on the policy summary - He is unable to find any reference to that in the paperwork they gave him! Also the company did not come under under the voluntary jurisdiction of the FOS, and they were not members of the General Insurance Standards Council.
Does my cousin have any chance of redress?
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