PPI Reclaiming discussion Part II

maxdp

finance-boy wrote: »

Hi everybody!

I posted my story in another thread ( http://forums.moneysavingexpert.com/showthread.html?p=15191029 ), but it's very long so I'll summarise it here.


My mum has been paying around £135 per month for 3 seperate PPI policies.

• Around £30/month for her Egg credit card PPI since 2002
• Around £55/month for her Halifax credit card PPI since about 2006
• £48.59/month for "loan protection insurance" on a loan from Lloyds TSB (since 2005)

When I realised how much she'd been paying for this rip-off insurance, I made her cancel them immediately. She's now cancelled the Egg and Halifax PPI policies (pending a 30-day "notice period" :mad:), but when she tried to cancel the PPI on her loan (£48.59/month), they said that she would have to take out another loan (this time without PPI) which would only save her about £18 per month. This cannot be fair, surely. I've included her loan statement below.



What she actually wants is to stop paying the £48.59/month for PPI (LPI). That seems pretty fair to me, especially considering that it was charged at 27% (!!!) of the original loan amount and that it's been accumulating interest in addition to the interest charged on the loan!!! But the woman at Lloyds TSB said "It's not a separate loan: the figures for the 'Cash Loan' and the 'Loan for LPI' don't really exist - only the Total Loan amount exists" :mad:

It makes me so mad. My mum actually does remember taking this policy out (unlike the Egg and Halifax policies, which she has no recollection of), but said that she wasn't given an option to take-out the loan without LPI/PPI. She said that the salesman was kind of like "... aaaaaand with the payment protection that comes to [tap tap tap] £12,777.93" and she didn't want to ask for the loan without PPI because she assumed it was compulsory and that she wouldn't get the loan without it. He never actually asked her if she wanted PPI/LPI.

Regarding the Egg and Halifax PPI policies, well she can only plead ignorance on those. She never checks her Egg statement (it's online and she doesn't have a computer) and she never noticed the £55/month that Halifax was charging her (she was probably too scared to ever look at her statement in detail since her finances are so abysmal). And she's really not very bright.

So is there any chance she can claim back these fees? She honestly had no idea that she had PPI on her Egg and Halifax cards. In fact, she's been made redundant twice (she has redundancy notices to prove it) since taking-out the Egg PPI in 2002 and hasn't claimed on her policy.

However, while I believe that she didn't know about her PPI cover, I find it hard to believe that it was added to BOTH her credit cards without her consent. It seems most likely that she agreed to it without knowing how much it would cost, and subsequently forgot all about it. Or maybe she thought it was compulsory.

But in her defence, I recently applied for a Barclaycard and received this notice along with the card:

Now, I ALWAYS decline any offer of card protection, since I know it's a complete rip-off, so I suppose this shows how easy it could be to sign-up by accident.

So what do you guys think? Do you think she has a claim?

Hi There

Yes she probably will be able to claim. Find the template under the Claim £1000 back now link go through and delete what does not apply to her.

It is quite usual that you cannot just cancel the PPI on the loan because it was front loaded and part of the loan. What they do is refinance without the PPI but the terms should be at the rate of the original loan or todays rate whichever is cheaper. They have a policy of Treating Customers Fairly which they are not doing with you so far.

You will probably have to recoup the PPI plus interest but you may have to take this to the FOS.

Good luck:D

maxdp

Sorry Di did not know you had replied:D

di3004

maxdp wrote: »

Sorry Di did not know you had replied:D

No problem hunni, your post was very useful, you added extra stuff that I didn't lol......:D , well done !:T

maxdp

We covered it all between us:rotfl::T

marshallka

finance-boy wrote: »

Hi everybody!

I posted my story in another thread ( http://forums.moneysavingexpert.com/showthread.html?p=15191029 ), but it's very long so I'll summarise it here.


My mum has been paying around £135 per month for 3 seperate PPI policies.

• Around £30/month for her Egg credit card PPI since 2002
• Around £55/month for her Halifax credit card PPI since about 2006
• £48.59/month for "loan protection insurance" on a loan from Lloyds TSB (since 2005)

When I realised how much she'd been paying for this rip-off insurance, I made her cancel them immediately. She's now cancelled the Egg and Halifax PPI policies (pending a 30-day "notice period" :mad:), but when she tried to cancel the PPI on her loan (£48.59/month), they said that she would have to take out another loan (this time without PPI) which would only save her about £18 per month. This cannot be fair, surely. I've included her loan statement below.



What she actually wants is to stop paying the £48.59/month for PPI (LPI). That seems pretty fair to me, especially considering that it was charged at 27% (!!!) of the original loan amount and that it's been accumulating interest in addition to the interest charged on the loan!!! But the woman at Lloyds TSB said "It's not a separate loan: the figures for the 'Cash Loan' and the 'Loan for LPI' don't really exist - only the Total Loan amount exists" :mad:

It makes me so mad. My mum actually does remember taking this policy out (unlike the Egg and Halifax policies, which she has no recollection of), but said that she wasn't given an option to take-out the loan without LPI/PPI. She said that the salesman was kind of like "... aaaaaand with the payment protection that comes to [tap tap tap] £12,777.93" and she didn't want to ask for the loan without PPI because she assumed it was compulsory and that she wouldn't get the loan without it. He never actually asked her if she wanted PPI/LPI.

Regarding the Egg and Halifax PPI policies, well she can only plead ignorance on those. She never checks her Egg statement (it's online and she doesn't have a computer) and she never noticed the £55/month that Halifax was charging her (she was probably too scared to ever look at her statement in detail since her finances are so abysmal). And she's really not very bright.

So is there any chance she can claim back these fees? She honestly had no idea that she had PPI on her Egg and Halifax cards. In fact, she's been made redundant twice (she has redundancy notices to prove it) since taking-out the Egg PPI in 2002 and hasn't claimed on her policy.

However, while I believe that she didn't know about her PPI cover, I find it hard to believe that it was added to BOTH her credit cards without her consent. It seems most likely that she agreed to it without knowing how much it would cost, and subsequently forgot all about it. Or maybe she thought it was compulsory.

But in her defence, I recently applied for a Barclaycard and received this notice along with the card:

Now, I ALWAYS decline any offer of card protection, since I know it's a complete rip-off, so I suppose this shows how easy it could be to sign-up by accident.

So what do you guys think? Do you think she has a claim?

I think all three of these she can have a go at. Firstly she needs to get a letter off to all of them stating the misselling and adding deleting whatever is appropiate to each claim she is making.

Then you have to wait for their replies to them by giving them 8 weeks for a full and final response. After that if they say no to them you can then take the complaints to the FOS. They will probably first time write back and state that it was not missold but give you the opportunity to repond to it by way of another letter. You then reiterate the complaint and get a final from them.

Take a look at this guide here and the template letter is there too.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim

Good luck.

Oh and yes, you do have to take another loan to cancel the PPI as the PPI was in fact a loan on top of your loan so you will only get a small rebate back and also continue the interest on this.

snook66

marshallka wrote: »

You can go down the court route at any time. I don't know about the time scales on the limitations act and whether it is different in scotland.

A good piece for you to look through about the statute of limitations is below

http://216.239.59.104/search?q=cache:viHqHCjZd8UJ:www.techinfonet.ac.uk/partnerships/records-retention-he/hei-pla-guidance+limitations+act+scotland&hl=en&ct=clnk&cd=9&gl=uk


When was this loan taken out exactly??

Hi there thanks for your responses to you Marshallka, it's a credit card which I still have that I am trying to claim back the PPI that's been paid so far... I looked at the FOS info and it is also saying that they cannot help if it longer than 6 months from the final response letter, so think that court is my only option.. The silly thing is I have claimed PPI back successfully from Cahoot through the FOS, so should have known better, I was awaiting the outcome from that before I persued the HBOS one...doh !

marshallka

I am going to do a template reply to anyone that is asking if they have a claim and then we all three don't reply with the same thing. I will try this and cover most things.

Yes, looks like you have a claim here...

Just take a look at the link here and see what you can add and delete from the letter that you send. There is also a template letter on there too but sometimes it can be better to make your own up from this.

You then write to the firm that actually made the sale of the PPI to you if this is different from the lender and don't forget to send this recorded delivery so you always a proof and dates etc.

After that you have to give them 8 weeks for a full and final response. In this time it is usual to get a response of "sorry we sold this to you fairly" but you then respond to this and reiterate your complaint again. The next time they write they either give you a final response which you would need in order to take this complaint to the FOS or offer to settle.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim


Good luck

marshallka

snook66 wrote: »

Hi there thanks for your responses to you Marshallka, it's a credit card which I still have that I am trying to claim back the PPI that's been paid so far... I looked at the FOS info and it is also saying that they cannot help if it longer than 6 months from the final response letter, so think that court is my only option.. The silly thing is I have claimed PPI back successfully from Cahoot through the FOS, so should have known better, I was awaiting the outcome from that before I persued the HBOS one...doh !

Maybe you could try putting this complaint to the FOS now. Maybe you had a good reason why you had not got this into them before this time if you know what i mean. Incidently, how long over the 6 months is it...??

di3004

Sent you a PM Marshallka.;)

maxdp

marshallka wrote: »

I am going to do a template reply to anyone that is asking if they have a claim and then we all three don't reply with the same thing. I will try this and cover most things.

Yes, looks like you have a claim here...

Just take a look at the link here and see what you can add and delete from the letter that you send. There is also a template letter on there too but sometimes it can be better to make your own up from this.

You then write to the firm that actually made the sale of the PPI to you if this is different from the lender and don't forget to send this recorded delivery so you always a proof and dates etc.

After that you have to give them 8 weeks for a full and final response. In this time it is usual to get a response of "sorry we sold this to you fairly" but you then respond to this and reiterate your complaint again. The next time they write they either give you a final response which you would need in order to take this complaint to the FOS or offer to settle.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim


Good luck

Hi Marshallka

Think in principle that sound fine but if you are not here who puts it on I know Di is on here lots. Just cause your light is on you may be occupied elsewhere on the site.

Also sometimes people have different variations of how they need help. Not trying to put spanner in works. Think it is a good idea and wonder if the wonderful MSE team could somehow work it so that it comes up on the top of every new page What do you think:D