PPI Reclaiming discussion Part II

di3004

This is how Endeavour had shown the settlement figure:


BALANCE OF ACCOUNT AT 4 OCTOBER 2005 = £23561.73

ADD INTEREST TO THE DATE OF SETTLEMENT £374.71

ADD FUTURE CHARGES = £40514.39

TOTAL AMOUNT PAYABLE BEFORE DEDUCTING A REBATE = £64450.83

LESS AMOUNT OF REBATE (INCLUDING INSURANCE IF AP)P = £40924.79

SUB TOTAL PRIOR TO LEGAL FEES = £23,526.04

ADD LEGAL FEE = £120.00

TOTAL AMOUNT PAYABLE FOR SETTLEMENT ON 30 NOV 2005 = £23646.04

marshallka

arthurp8 wrote: »

A few months ago I tried starting the reclaim process for my PPI on my firstplus loan taken out through freedom finance....however was fobbed off by firstplus saying they were not liable as the loan was taken out through Bespoke finance - Bespoke fobbed me off with a general letter - as such I decided to sit back and wait until more momentum was there - as such does anyone have any advice as to how I should proceed with my complaint and PPI reclaim.

My loan is with firstplus via Freedom finance (though obviously Bespoke now that I know). Anyhow my PPI was missold as the person dealing with my loan actually filled the PPI box in on my forms so it was already ticked - and I tried cancelling this and was told that I would then lose the money that is paid up front.

Any help or advice gratefully received....

What have you done so far...Have you written again to Bespoke as this is the usual fob off... You do know they are based in GIB don't you and that they had no need to be regulated by anyone at the time of the sale. I also assume this was a pre 2005 sale.

Edit I have just looked back over your posts and you first complained in December/January didn't you. I doubt you would be able to go back to them after leaving it this long. They would close the case if you do not get back within a certain length of time. You will probably need to make a new complaint and this could be for unfair rebate of the PPI when you settled the loan with Firstplus. This is much easier and also you can take this complaint to the FOS should they refuse you. (assuming you have settled the loan already, also you tried to cancel and they would not let you as they said you would lose money in doing so).

di3004

marshallka wrote: »

Right Di, found all your details here

Loan 21000
PPI 2835
repayments 208.51 x 300
PPI rebate 1533.69

So 2835 divide by 23835 = 11.89% PPI element

208.51 x 11.89% = 24.79
24.79 x 16 = 396.64
PPI amount is 11.89% of the total loan being
7437 - repayments made 396.64 - the rebate of 1533.69 = £5506.97

If my working out correct here then you had paid an extra 5506.97 on settlement for a PPI policy that was of no further use to you.

Thanks hun.

I have also come across these from M Colak

PPI Paid £255.62
Stat Interest £54.53
Actual Reclaim £310.15

PPI Rebate on settled figure:
PPI Remaining on Loan at settlement date: £2812.44
Stat Interest: £599.99
Actual Reclaim on Settlement figure: £3412.43

Total Reclaim: £3722.68

Now would that be worked out by deducting what they have already part rebated then ? Have not worked it out yet lol.

marshallka

di3004 wrote: »

Thanks hun.

I have also come across these from M Colak

PPI Paid £255.62
Stat Interest £54.53
Actual Reclaim £310.15

PPI Rebate on settled figure:
PPI Remaining on Loan at settlement date: £2812.44
Stat Interest: £599.99
Actual Reclaim on Settlement figure: £3412.43

Total Reclaim: £3722.68

Now would that be worked out by deducting what they have already part rebated then ? Have not worked it out yet lol.

I think this is to do with the rule 78 used in our rebate and not in yours. He worked mine out near to what I worked it at...If this is the case then mine is wrong too.

di3004

marshallka wrote: »

I think this is to do with the rule 78 used in our rebate and not in yours. He worked mine out near to what I worked it at...If this is the case then mine is wrong too.

Not sure to be honest hun, all I know is that they state that the rebate has been calculated in accordance with the Consumer Credit (rebate on early settlement) Regulations 1983.......

marshallka

Oh Di, i just don't know.. It works for mine in that we borrowed £17000 repaid £11115 = 5885 and then repaid £20400

You borrowed £21000 repaid 3336.16 = 17664 and then settled £23646..

Edited

di3004

marshallka wrote: »

Oh Di, i just don't know.. It works for mine in that we borrowed £17000 repaid £11115 = 5885 and then repaid £20400

You borrowed £21000 repaid 3336.16 = 17664 and then settled £23646..

Edited

And when did you settle yours hun ?
Maybe it is all to do with the rule of 78, but didn't that stop in 2005 ?

Not sure :rolleyes:

marshallka

di3004 wrote: »

And when did you settle yours hun ?
Maybe it is all to do with the rule of 78, but didn't that stop in 2005 ?

Not sure :rolleyes:

Not everyone used it in the rebate of the PPI and that is why the FOS are so into FIrstplus. They actually state on their PPI terms and conditions that your rebate will not be worked out proportionally but rather under the rule 78. Its not about the rule 78 in settlement, its about use of it in caculating the rebate against the insurance. Going to find troness's post that explained it to me.

marshallka

di3004 wrote: »

And when did you settle yours hun ?
Maybe it is all to do with the rule of 78, but didn't that stop in 2005 ?

Not sure :rolleyes:

We settled in 2003 but looking at how m colak has worked yours its very different to how he worked mine. He did mine on the V1.1 calculator and not with yours.. Don't really understand it..

marshallka

This is what tron_ess posted about it
You probably had it against something more like 50% of the premium (an example as most firms are slightly different). So basically if you cancel in 30 days you get 100%. If in month 2 you get 50% !!! Then they apply Rule of 78 from there. The point is - you didn't know!! and probably still don't because the T&Cs of the policy didn't make this clear. Unfair contract term perhaps?
I have to agree with Tiggrae in that you may still have some mileage in this.

also this

Re Hurtanger/Commission - all firms are playing this one close to their chests. They know this unlikely to be under FOS jurisdiction, so they'll almost ignore this unless the complaint is specific on this.
They still have to comply with FSA DISP rules so even if they FOB you off they should still address the issue raised in the complaint - so i'd consider going back on this point alone.
This issue has joint liability! If commission wasn't disclosed by either broker or lender then they are jointly liable to re-imburse you the value of that commission. Problem of course is that this is slightly more legally technically, and considering some firms exposure you may find they'll fight this one all the way.

and this

When you are claiming a rebate for cancelling insurance - insurers are still allowed to use Rule of 78. They merely take the premium amount - and apply their calculation to that. Then take that from the current loan.

The point I was making is that few actually give you Rule of 78. What they do is apply rule of 78 against a % of the original premium. They may only apply the rule of 78 against 25% of the premium. This means that if you cancelled after 45 days - you'd only get 25% rebate. That's their starting point!!! If you use true rule of 78 on a 5 year policy and cancelled in Month 2 you get approx 85% back. (crude maths here - but you get the picture).

Basically if firms were applying rule of 78 FOS would have no issues. The fact is that they first take 50% or more away, and then apply rule of 78!!