Grandad make a PPI enquiry...

Michael23

Grandad made an enquiry with Yorkshire bank and was told of 6 loans containing PPI, some going back to the 80’s. He never knew he had paid for PPI on these loans, only ever his mortgage with northern rock. He has made the enquiry through there online site and said that he didn’t know ppi was applied, he didn’t want or need it. He had substantial savings and that he would have received sick pay from work.

Are these reasons such as savings and sick pay valid reasons for making a complaint?

Bermonia

He can make the complaint... however these are not usually sufficient grounds for a loan mis-sale complaint to be upheld (if he had significant savings why was he always borrowing - sick pay is usually limited and most polcies paid out in addition to any sick pay entitlement).

If the loans were single premium and formed a refinance chain then there is a strong possibility that yourkshire would refund the later five loans.

Michael23

Bermonia wrote: »

He can make the complaint... however these are not usually sufficient grounds for a loan mis-sale complaint to be upheld (if he had significant savings why was he always borrowing - sick pay is usually limited and most polcies paid out in addition to any sick pay entitlement).

If the loans were single premium and formed a refinance chain then there is a strong possibility that yourkshire would refund the later five loans.

Why dip into savings? What do you mean by single premium?

[Deleted User]

Michael23 wrote: »

Why dip into savings?

To reduce financing costs. It's commonly done by people with sufficient liquid assets.

Michael23 wrote: »

What do you mean by single premium?

It's an upfront premium added to the loan.

Bermonia

Why spend considerable amounts of interest on loans? Regardless it is insufficient grounds for the complaint to be upheld.

Single premium loans are where the loan premiums were ‘front loaded’ onto the loan... in essence you were borrowing the funds to pay the PPI premium too thus incurring interest, due to the front loading nature these loan usually failed to offer a pro-data rebate on early settlement... thus making any subsequent loans more expensive - FOS usually consider that subsequent loans in a refinance chain should be upheld when this is the case.

Michael23

I'm talking a few thousand pounds savings, not millions. The loans were around 10k.

I also noted that he didn't want or need it. I said that he didn't know about the PPI. Surely not knowing means wasn't told about cost/terms/benefits.

[Deleted User]

Michael23 wrote: »

I said that he didn't know about the PPI. Surely not knowing means wasn't told about cost/terms/benefits.

No.
All that indicates is that he's forgotten signing the PPI agreement(s) or failed to read what he was signing. Neither of these are valid complaints.

It's a claims company myth that PPI was routinely added without the permission and knowledge of the customer. Loans had the PPI on the Agreement and credit cards itemised it on every monthly statement when the account had a balance.

Nasqueron

Michael23 wrote: »

I'm talking a few thousand pounds savings, not millions. The loans were around 10k.

I also noted that he didn't want or need it. I said that he didn't know about the PPI. Surely not knowing means wasn't told about cost/terms/benefits.

That then defeats your own argument, not having sufficient savings to pay off the loan shows it's not a good miss-sale reason.