Paragon PPI - refusing claim

bellababez

Hello,

I have made a claim to Paragon for a very old loan (2006) using the Resolver tool. However they came back to me stating:

"The application was submitted to Paragon by the introducing broker, HFS Loans Ltd. They were responsible for the sale of the loan and insurance, ensuring copies of the terms and conditions were provided, and then answering any questions that may have arisen.

The broker processed all paperwork relating to the application and sent us the fully packaged documents after the credit agreement had been executed. As we are not party to the conversations you had with your broker regarding the sale of the insurance, we are unable to comment further in this respect and I suggest you contact your broker direct. They were not appointed agents of Paragon."

They further stated that they are closing the case since they are not liable.

Can anyone please explain what I need to do?

Thank you very much
Miss G

[Deleted User]

Address your complaint to the broker.

amersall

Capital one bought HFS, they are who you make the claim to.
Do you have paperwork for this loan?.
Did the insurance only cover for 5 years but you repaid this over the whole loan term?.

-taff

They would have been regulated so not a problem with that.

woozywoo

Hi Bellababez,
I just got exactly the same letter from Paragon today so I have sent a SAR letter to them because I have no recollection of going through a broker for this large loan. Hopefully the SAR will prove me right.
We took out a large loan in 2007 over 20 years & the ppi was only for 10 years, the ppi just expired in April and we thought our payments would go down but we just found out from Paragon that we have to keep paying for it for the next 10 years although we have no cover. We also just found out that we have been paying it for the last 7 years for nothing because my hubby went self employed in 2010 and as it was single cover anyway, they don't cover if your self employed. I've only just found out this week who the insurance was with and according to Paragon it has been with 3 different insurers since we had the loan. We have never had any paperwork relating to this ppi and no correspondence in 10 years from any of the 3 insurance companies regarding this policy which is actually just another loan. Not happy at all, in fact feel really gutted that we went ahead with this loan as this company have been a joke form the start.
When we first applied for this loan the Paragon quoted us lower monthly payments but when we got the paperwork through the post it was much higher because they had added ppi. We called them and told them we didn't want ppi but they told us it was compulsory and we couldn't have the loan if we didn't agree to the ppi. We have now decided to take this further because the only thing we told about the ppi at the time was that if we didn't make a claim on it at the end of its term we would get the whole lot back, we called Paragon and they just came back and declined our request because in 2010 when hubby went self employed we had a tough time and went into arrears by 2 months. Paragon was informed of the reason for the arrears that the cash flow was slow due to the new self employment so surely they should have advised us at that point that the ppi we had would not cover us. They say that we breached our contract so are not entitled to a refund. They also just told us that we will not be entitled to the cashback scheme at the end of the 20 year term because of the arrears that we had yet they're happy to make us pay for the next 10 years for something that is about as useful as a chocolate teapot, that means that we will have been paying for ppi for 17 years for nothing.
They say we took the loan with Click for Freedom so we should take it up with the FSCS as Click for Freedom no longer exist. I am seething that we have been completely lied to in order for Paragon to earn huge commissions that we will still be paying them for the next 10 years.

-taff

Whoever your broker was will have been regulated in 2007 so find out who it was and cmplain to them.