PPI Reclaiming discussion Part II

marshallka

A good link here about PPI

http://www.consumerwiki.co.uk/index.php/PPI

di3004

lilac789 wrote: »

I took a loan out with Northern Rock in 2006 and was told I had to take PPI or wouldn't get the loan. In 2007 my circumstances changed so I asked if I could extend the loan by 1 year and was made to take out and reapply for a 2nd loan, at a higher interest rate, with PPI.

I have since closed this loan account, but no longer have any paperwork for it, as I shred everything!

Can I still amke a claim against Northern Rock... especially as they have now been nationalised?

Thanks

Hi there
You say you have closed the account, so you actually mean you have settled this ?

You can contact the firm who arranged the loan and request for a copy of the agreements and all written breakdown of calculations, when you recieve these come back and add your calculations on here, they can be looked at, it will be known then what was used to settle the loan(s).

They may have you a £1 for requesting this and they should post them out to you.

However, they should not have made you take out the PPI and given you the option here, you may not have been eligible for it anyway, or you may have already had cover for this.
There are so many reasons of mis selling.

Check out the above section in red stating "reclaim £1,000's", there is some information of mis selling and you will also find a template on that site to help guide you through this, for when your ready to do this.
Also add as much as your own information as possible with your own reasons of why you believe you were mis sold.

They have 8 weeks to respond, if not successful first time, another letter of in order for them to look again to reconsider can be sent, if still unsuccessful this can them be taken to the Financial ombudsman service.
We will work through this step by step.;)

First of all request your agreements.
Get the reclaim complaint letter done, (I know you state you no longer have your docs, but do you still have the account number)?

Now when you have done your letter, post by recorded delivery in order to keep a check on the timescales of 8 weeks.

If you require further info please just yell anytime.

All the best.
Di

Soz Marshallka, I see you have posted in the meantime lol. x

di3004

This has been added in this forum a few times too, but pages away now, interesting for who have not read them.;)

http://www.fsa.gov.uk/pages/Doing/Regulated/consumer/tackle/ppi.shtml

marshallka

di3004 wrote: »

This has been added in this forum a few times too, but pages away now, interesting for who have not read them.;)

http://www.fsa.gov.uk/pages/Doing/Regulated/consumer/tackle/ppi.shtml

This is where the refunds have to have been unfair and the claims have to be made under unfair terms. A term is only unfair if it is in a CONTRACT... the contract being the actual PPI policy document and that is how the FOS can look at these...


We take the view that this type of term may be unfair under the Unfair Terms in Consumer Contracts Regulations 1999 (the Regulations). This is because, contrary to the requirement of good faith, it could cause a significant imbalance in the parties' rights and obligations under the contract, to the detriment of the consumer.


If your refund of PPI did this and you can find the "unfair term" then this is where you make your complaint....

Di M colak did you the calculations but if you had that amount back then you would have been paid by the firm for having the loan in the first place....

marshallka

Can I cancel the insurance policy?

If you are paying a monthly premium, you may need to give your insurer some notice if you want to cancel. Then, from the month the premium stops being paid, the insurance becomes null and void. Pay-monthly PPI provides the best value and gives the borrower more control over their finances.
Things are not as straightforward with single premium policies. Theoretically customers should be able to cancel the premium and receive a refund to their credit balance. However, there have been reports of borrowers having problems with this approach as lenders claim that the entire loan must be re-arranged - and perhaps even at a higher interest rate.
Even if the cancellation process runs smoothly with a single-premium policy, the refund is unlikely to be proportionate to the time left on the policy. This is because of the way PPI providers calculate the value of cover - it is more expensive early on in the loan as claims would be proportionately more expensive for the provider at that time.
Many consumers don't know it but, by law, they have the right to cancel any Payment Protection Insurance policy within the first 14 days of accepting it (or 30 days if life cover is included). In this case a full refund of the cost of the PPI must be made - but expect some small administration charges to be deducted first.


Again another one about my Firstplus PPI policy. We had no cancellation period as this was on the loan agreement. It stated on the loan agreement that immediately you take this agreement the insurance is paid to the insurer in a lump sum. On the actual credit agreement it states 7 days cancellation and on the PPI policy none... other than the rebate in accordance with rule of 78...

UNFAIR CONTRACT TERMS...

lilac789

Thanks for all of your speedy advice!

I've just been looking at my credit file and have the dates that I had the accounts but don't have the account numbers. Yes both accounts were settled in full, before the term ended.

I'll get in touch with Northern Rock and request copies of my agreements and keep you updated.

Also noticed on my credit file another loan that I had forgotten about, will ahve a look into that one as well!

Just phoned Northern Rock and they are sending copies of the original paperwork out to me free of charge!

marshallka

Just a few cases that went to the Ombudsman for misselling of PPI - may give some people ideas of how the Ombudsman deals with these complaints (or not in my case - lol)

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/71/71-payment-protection-complaints.html

di3004

marshallka wrote: »

This is where the refunds have to have been unfair and the claims have to be made under unfair terms. A term is only unfair if it is in a CONTRACT... the contract being the actual PPI policy document and that is how the FOS can look at these...


We take the view that this type of term may be unfair under the Unfair Terms in Consumer Contracts Regulations 1999 (the Regulations). This is because, contrary to the requirement of good faith, it could cause a significant imbalance in the parties' rights and obligations under the contract, to the detriment of the consumer.


If your refund of PPI did this and you can find the "unfair term" then this is where you make your complaint....

Di M colak did you the calculations but if you had that amount back then you would have been paid by the firm for having the loan in the first place....

Yes that's right.

And now I am digging out the old loan agreements with LLoyds, have a few there, paid well over them when settling, will add them later.
Thing is I want to pursue these on mis selling the ppi, they would not pay out when hubby was off with his back complaint, must be a few grand here to come back, found that statement in writing, I had rang them a few years back to ask where my hubby woulds stand in making a claim, he was off for 66 days at the time, wearing back straps and stuff, and they said he could not claim, glad I have found that paperwork.;)

My sister is visiting over the weekend and said she will help me go over most the paperwork as I have so much of it, she's the chartered accountant, so will also ask her to help what is what here, I am getting so confused lol, I don't see her that often due to her living miles away from me, so I have been preparing it all as much as I can, without trying to get my knic knacs in a twist lol......:o

marshallka

This is what I cannot get my head around in these policy refunds etc



Refunds will not necessarily reflect the period of insurance that you are
cancelling. This is partly because you owe more money at the beginning of
the policy, so the risk at the beginning of the policy is higher than at the end
of the policy. Expenses such as administrative costs may also be taken from
the refund.


And yet most people would probably make a claim for unemployment more than anything and they pay out for 12 months usually at the same amount choose whether you are 6 months into the loan or 6 years into the loan.

Loans – The insurance will cover your monthly repayments for the loan – generally for 12 . After this period you will have to pay your monthly loan repayments yourself.


Just does not make sense and we are more at risk too as only 20% of policies ACTUALLY do pay out according to statistics....

What did we think was unfair?

Some policies state that you will not be able to claim any refund of your premium outside the statutory cancellation period of 14 or 30 days.

Why did we think it was unfair?

If you repay your loan early, the PPI is of no further value to you because the PPI benefits are linked to it. So a firm should not prevent you from receiving a partial refund from the PPI policy if you cancel the policy or repay the loan early. However, you may not be entitled to a refund if you cancel very close to the end of the period covered or if you have already made a successful claim under the policy.


What should I do if I want to repay my loan early?

Firms should allow you to receive a refund if you cancel your policy when you repay the loan, except if you cancel very close to the end of the period covered by your policy or if you have already made a successful claim under the policy.
If you have a contract with a firm that prevents you from claiming a partial refund of your PPI premium if you settle your loan early, ask the firm if they will give you a partial refund anyway. If they do not, and you believe you are entitled to one, complain to the firm and tell them about our work. You can also report the term to us – see Unfair contract terms.



What should I do if I want to cancel my policy without repaying the loan?

The trade bodies have agreed that firms should also allow you receive a refund if you cancel your policy without repaying the loan, except if you cancel very close to the end of the period covered or if you have already made a successful claim under the policy.
If you have a contract with a firm that prevents you from claiming a refund of your PPI premium if you want to cancel the insurance, again, ask the firm if they will give you a partial refund. If they do not, and you believe you are entitled to one, complain to the firm and tell them about our work. You can also report the term to us – see Unfair contract terms.

What can't we do?

• We can’t resolve individual disputes. You will first need to complain to the firm – see Making a complaint.
• We don’t have powers to compensate you if you have suffered loss because of an unfair contract term. Again, you will need to complain to the firm - see Making a complaint.

We don’t deal with complaints about contracts concerning personal loans, hire purchase, credit cards or other credit products. The Office of Fair Trading (OFT) deals with these. You can contact them through Consumer Direct – see Related links.
We can't assess the fairness of core terms unless the term is unclear. Core terms include terms that set out the price or the product or service being supplied.


Reporting unfair contract terms >

marshallka

di3004 wrote: »

Yes that's right.

And now I am digging out the old loan agreements with LLoyds, have a few there, paid well over them when settling, will add them later.
Thing is I want to pursue these on mis selling the ppi, they would not pay out when hubby was off with his back complaint, must be a few grand here to come back, found that statement in writing, I had rang them a few years back to ask where my hubby woulds stand in making a claim, he was off for 66 days at the time, wearing back straps and stuff, and they said he could not claim, glad I have found that paperwork.;)

My sister is visiting over the weekend and said she will help me go over most the paperwork as I have so much of it, she's the chartered accountant, so will also ask her to help what is what here, I am getting so confused lol, I don't see her that often due to her living miles away from me, so I have been preparing it all as much as I can, without trying to get my knic knacs in a twist lol......:o

Is this recent then since he was off work and the loan still going when he became ill but settled then....

No sorry Di, just reread again... This was a few years ago...


Why did they say he could not claim... was it an ongoing complaint that he had before...