PPI Reclaiming discussion Part II

di3004

marshallka wrote: »

Are you on about cancelling the PPI policy... I had no cancellation rights on the PPI policy documents that they sent to me with the SAR. The only cancellation rights on the PPI policy were that if you cancel then this would not be in proportion but rather under the use of the rule of 78.

No actual cancellation rights of 14 or 30 days...

It says here on which site

http://www.which.co.uk/advice/cancelling-your-ppi-policy/index.jsp



If you’re really sure you don’t need the insurance, it’s easy to cancel it. Everyone has a legal right to cancel a policy within either 14 or 30 days of the start date (depending on the terms), but you can still cancel the policy even if you have kept it beyond this period.
BUT WE HAD NOT RIGHT IN LAW TO CANCEL BEYOND THE 7 DAYS AFTER SIGNING THE AGREEMENT AND THE AGREEMENT DATE WAS THE DATE THAT THE POLICY STARTED.

I don't know when this came into force but it looks like we had an unfair agreement if we had 7 days to cancel after signing the agreement (their rights) and ours of cancelling the PPI policy were then stopped due to the PPI being a loan creating an unfair relationship and unfair contract.

Yes exactly !
I have been trying to seek out of when this came into force but unlucky so far, yet surely this should have been disclosed in our rights.....

marshallka

di3004 wrote: »

More on my agreement.
IMPORTANT : you should read this carefully:

The Consumer Credit Act 1974 covers this agreement and lays down certain requirements for your protection which must be satisfied within the agreement is made.
If they are not, we cannot enforce the agreement against you without a court order.

INSURANCE:
Where payment protection insurance has been selected, this document constitutes a proposed confirm that you have received details of the PPI and are aware that a copy of the policy, setting out all the terms and conditions, is available on request.
The insurers are not obliged to accept the proposal.
If the insurers do not accept the proposed premium specified in the Schedule overleaf will be cancelled and the Total Loan Amount and instalments will be reduced accordingly.
If the insurers do not accept the proposal , following execution agreement by us, the insurers will issue a policy document to you.
Under the term and conditions of the policy, payment by the insurers of any benefit will be made to the lender and will be used to discharge all or as much as possible of the Total loan amount other sums in relation to it.

WARNING:
If you fail to disclose any material facts that the insurers regard as likely to influence assessment and acceptance of the proposal, the insurance may be declared void at at (cannot see that word) insurers.
if you are unsure as to whether or not facts are material, you should disclose them.

Di, what I am now wondering is if you had life insurance included then your right to cancel was 30 days by law.

If you had PPI applied to a credit agreement and signed the agreement then after 7 days you would not be able to cancel and it would then be left up the company if you decided you did not want the PPI to either rewrite the agreement and be nice and fair and not charge you (aww bless!!:rolleyes: ) or enforce their rights and say you will only get a small refund or at least get charged something due to cancelling beyond the 7 days. Your rights are affected, not theirs...you rights to cancelling the PPI that included life insurance before 30 days.

dreamer33

Don't know if anyone has seen the home page but its been updated sorry if you have already read it been away for a bit:

The UK’s biggest protection racket isn’t run by East End villains with shooters, but the genteel staff of Britain’s banks. For years they’ve been stealing £1,000s, but now the door's open to get your money back.

If you’ve got a loan, credit or store card, you urgently need to check whether they included insurance as part of it. If so, without you realising, you could be paying £1,000s for potentially worthless cover.
Get your money back
Payment protection insurance isn’t a bad product. It’s designed to meet repayments for a year in the event of accident, sickness or unemployment. The problem's the way it's been flogged.
The misselling has often been systematic, banks forcing staff to sell these policies or face lower pay. You may’ve been told the insurance was compulsory... IT ISN’T, that alone counts as misselling. Plus the self-employed, unemployed, retired, those with pre-existing conditions, or who are covered elsewhere, have all commonly been flogged unnecessary policies.
Why you could have it without knowing
Heavier regulation means this is less likely in the last couple of years, but many people still have loans where the picture was a bit like this:

You want a £5,000 loan over five years. You’ve seen it advertised at a cheap 7% so you call up...
You: “I’d like a £5,000 loan over 5 years please.”
Bank: “I presume you’ve seen our competitive interest rates.”
You: “Yes, can you give me a quote please.”
Bank: “Sure, our fully protected loan is £125 a month.”
Now most people, would find it virtually impossible to calculate how much the monthly repayments should be, so £125 sounds fine.
It’s a brilliant hustle. The answer contained two little words that make ‘em a fortune “fully protected”. They mean you’re also being flogged expensive insurance.
Actually the cost of the loan at 7% should be £100 a month, the remaining £25 is to pay for the insurance. That means if you’d just got the loan you’d have repaid the £5,000 borrowed plus £950 in interest.
Yet the insurance adds £1,500 over the life of the loan; that's MORE than the interest cost and it's almost pure profit for the bank!

So many people have this cover which is unnecessary. And even for those for whom it's necessary, if you got it through your lender, you’re probably paying four times more than you need.
Reclaiming has got easier
The financial regulator has been fining PPI companies left right and centre, for “not treating customers fairly” plus the Competition Commission has been investigating. This scrutiny means companies are having to hold their hands up to their past tactics. So if you’ve got a case, write and complain, it’s getting much easier.
At worst, you’ll need to write three letters, the last being to the Ombudsman, though hopefully you’ll get a payout sooner. As all of this is free, the worst case scenario by reclaiming is you lose the cost of three stamps.

dreamer33

On unregulated credit agreements did the broker have to disclose any commission or monies paid to him, to the customer?

Should an unregulated credit agreement have shown the total cost to pay back including interest etc or was it acceptable to show you the initial loan amount then ppi then loan and ppi added together?

di3004

marshallka wrote: »

Di, what I am now wondering is if you had life insurance included then your right to cancel was 30 days by law.

If you had PPI applied to a credit agreement and signed the agreement then after 7 days you would not be able to cancel and it would then be left up the company if you decided you did not want the PPI to either rewrite the agreement and be nice and fair and not charge you (aww bless!!:rolleyes: ) or enforce their rights and say you will only get a small refund or at least get charged something due to cancelling beyond the 7 days. Your rights are affected, not theirs...you rights to cancelling the PPI that included life insurance before 30 days.

Arh yes I see.......:rolleyes:
Now with this Endeavour one, it was a Single Accident/Sickness and Unemployment (no lifecover), so this covered the hubby only, because he was the only earner, so will this make a difference in the rights of cancellation ??:rolleyes:

marshallka

dreamer33 wrote: »

On unregulated credit agreements did the broker have to disclose any commission or monies paid to him, to the customer?

Should an unregulated credit agreement have shown the total cost to pay back including interest etc or was it acceptable to show you the initial loan amount then ppi then loan and ppi added together?

Thats what mine had on a regulated agreement... I would have thought the commission issue was for both, they should have disclosed it as it was then "secret commission" if they did not. I had a commission showing on my SAR from Firstplus of £850 being 5% of the loan without the PPI. I did not pay this as I know to but it certainly was not disclosed to me that the broker was receiving this amount. I would have thought twice if I had known...

di3004

dreamer33 wrote: »

On unregulated credit agreements did the broker have to disclose any commission or monies paid to him, to the customer?

Should an unregulated credit agreement have shown the total cost to pay back including interest etc or was it acceptable to show you the initial loan amount then ppi then loan and ppi added together?

I think on my last secured loan the broker eloan did mention about them being commission paid but no amounts was disclosed, but I do remember being told this does not affect our loan..... , not seen the figures anywhere on the agreement as such, yet on my SAR underwriting work there is paid commission of some sort of a few grand, its all so confusing, I now take it - that its what these got paid for selling the loan and obviously more on top for the ppi.....:rolleyes: .

Not sure if this is a right to disclose this or not, I should think so myself.

marshallka

di3004 wrote: »

Arh yes I see.......:rolleyes:
Now with this Endeavour one, it was a Single Accident/Sickness and Unemployment (no lifecover), so this covered the hubby only, because he was the only earner, so will this make a difference in the rights of cancellation ??:rolleyes:

14 days for accident etc but my actual policy documents that Firstplus sent in their sar said nothing about cancelling within any time limit at all. They can probably say that we received the documents (althought we never had any at all and I complained about this in 2003 during a phone conversation) prior to signing the agreement but that still was not 30 days prior as the whole loan from start (application) to finish was only about 11 working days. (18th December,1999 applied and signed agreement 6th January, 2000 and no in between agreement that we should have been sent either as there was no physical time as this was the millenium year and lots of bank hols in between).

Maybe it is not law to have this right to cancel then????????????????????

dreamer33

marshallka wrote: »

Thats what mine had on a regulated agreement... I would have thought the commission issue was for both, they should have disclosed it as it was then "secret commission" if they did not. I had a commission showing on my SAR from Firstplus of £850 being 5% of the loan without the PPI. I did not pay this as I know to but it certainly was not disclosed to me that the broker was receiving this amount. I would have thought twice if I had known...

Do you not have an argument about this? Was the £850 added to your loan?

di3004

marshallka wrote: »

Thats what mine had on a regulated agreement... I would have thought the commission issue was for both, they should have disclosed it as it was then "secret commission" if they did not. I had a commission showing on my SAR from Firstplus of £850 being 5% of the loan without the PPI. I did not pay this as I know to but it certainly was not disclosed to me that the broker was receiving this amount. I would have thought twice if I had known...

Missed this just now, and see that you only knew mainly because of the SAR, like mine then......:rolleyes: .

My hubby just told me I had asked him to ask them on the phone (while he was on the phone to the broker) if they got paid for doing this, he said all they said was they get paid commission and no amounts disclosed, and they quickly moved on to getting on with the loan and ppi......
If I hadn't had got the hubby to ask then they may not had said anything !