PPI Reclaiming discussion Part II

marshallka

m.colak wrote: »

Ok first things first:

Single premium loans are ones where the PPI is added as a one of payment and interest is charged on top of it.

Mulitple premiums are used in the case of credit cards where the PPI is calculated monthly and therefore the figure changes however interest has been included in the figure.

Front Loaded policies are ones where the PPI/PPI Interest and Interest ion the loans are paid off first before you actually see your actual loan decrease.

Non-secured loans usually have interest previously worked out on the whole of the figure and therefore payments stay the same all the way through the loan.

Secured loans/mortgages are affected by interest rates and therefore the amount of PPI interest can go up and down.

As for your IVA if it has already been settled then the only thing the company will try and do is withhold a certain amount of the refund due to loss in interest which they could have received if the loan hadn't been frozen. In ALL cases where there is an IVA i would recommend after the inital letters and getting their final response (whether you agree or disagree) go to the FOS to ensure you get the best deal.

thanks for that m colak. I always thought that single premium policies and front loaded policies were the same

sarahc5388

angelwillow wrote: »

How is this for taking the ****?
My OH sent a letter to Goldfish in January and they are still 'looking into it' as it is with their legal team!
Well over the 8 week time limit!!!

Barclays are just short of 11 weeks with me - phone them and ask what's happening - then phone the FOS and report it to them, they took all my details and gave me a reference number, then phone Goldfish and tell them you have reported them as they are over the 8 weeks. It may give them a kick to actually do something.

catinthehat1

marshallka wrote: »

Just been looking back over my posts when i was going for firstplus and i got this reply from FOS when i tried to claim

Thank you for your email.

From the information you have provided, it would appear that we cannot deal with your complaint because the business is not covered.

Having looked at the information you have supplied to me, it appears that your complaint against Firstplus Financial Group relates to events which occurred when it was not a member ofthe General Insurance Standards Council (GISC).

On the 14 January 2005, as a result of recent legislation, the Financial Ombudsman Service became responsible for looking into complaints against former members of GISC about events that occurred while the firm was a member of GISC.

I should explain that the firm was a member of GISC from 20 November 2001. I note the policy was sold to you in January 2000. The complaint therefore appears to outside our jurisdiction.

You should be ok :j

Thanks - our loan + PPI was sold to us in 2004 - so they were obviously a member from 2001

tiggrae

di3004 wrote: »

Here is a rough draft letter to Endeavour, have not added personal details on here obviously etc, but I have never actually dealt with a letter about a unfair rebate before, so if this needs tweaking which again I think it will I will be very happy for your help, thanks so much. Grammar not brilliant lol.

Unfair Rebate Settlement/Account policy number –

Dear Sirs

I am writing in regards of an ‘Unfair Rebate Settlement’ in November 2005.
Account Number XXXXXXXX

Only a fraction/Part portion of the rebate of £1533.69 was deducted within the settlement calculations and it was not explained how the rebate was actually calculated, such as for example the loan, payment protection insurance or both.
The full amount of settlement to settle this was £23,646.04, yet I note that an amount of £26565.18 was received of the full payments received to you on a policy of £23,835.00, because the loan amount was £21,000 and the payment protection insurance was that of £2835.00.

All the above is proven on the paperwork received within a Subject Access request that was provided Endeavour Personal Finance to me.

I believe this was an ‘unfair rebate’ considering the 25 year policy was taken over 25 years and settled the year after. I believe I was deprived of this money.

I have sought further information about ‘Unfair Terms in Consumer Contract Regulations 1999, through the ‘Office of Fair Trading, this came onto force October 1999 as the Unfair terms of Consumer Terms of Contracts regulations 1994 are herby revoke.
I am also aware that the FSA rules that firms should give a fair refund.

I was not given a refund only a part portion of a rebate settlement as stated on your letter, yet your Endeavour paperwork states, ‘if settle early you may be entitled to a refund’ this is my opinion is not a rebate, and could be read as mis-leading by consumers, such as myself for that matter.
I do not feel I was treated fairly, and would appreciate it if you could uphold my complaint and refund me the amount worked out of approximately £3722.68, and 8% of what a court would award.
If this is not resolved or upheld in 14 days of this letter due to the unfair settlement conditions, I will be forced to complain to the Financial Service Ombudsman, who will be able to investigate this on the grounds of Unfair Settlement Rebates.

I look forward to receiving your response within 14 days of this letter.


Yours faithfully

try this
Unfair Rebate Settlement/Account policy number –

Dear Sirs

With regard to the above, upon early settlement of my loan in November 2005, I only received a small proportion of rebate against the Payment Protection Insurance, which I believe to be unfair under the Unfair Consumer Contract Terms Regulations 1999, especially considering the loan / PPI was taken over 25 years and settled only one year later

I am also aware the FSA have stated Companies should provide a fair refund upon early settlement.

Also, as only a small proportion was rebated, yet your own Marketing state, ‘if settle early you may be entitled to a refund’ in my opinion I did not receive a refund and believe this statement to be mis-leading and amounts to Negligent Misrepresentation under the 1967 Misrepresentation Act.


In summary, I do not feel I was treated fairly, should you fail to uphold my complaint by which I believe you unlawfully deprived me of approximately £3722.68, if this amount plus 8% Statutory Interest is not forthcoming, upon receive of your final response I will without further notice take my complaint to the Financial Service Ombudsman, on the grounds of an Unfair Settlement Rebate.

I look forward to receiving your response within 14 days of this letter.


Yours faithfully

sarahc5388

Just got the paperwork from the FOS after phoning them yesterday lunch time! how fast was that, will get the rest filled in, may call on some of you for advice

marshallka

Need some help with calculations

Had Loan from co-op in December 2002 for £8100
PPI single premium £2588.84
repayments were £168.00 per month for 7 years
Settled on 9th July 2004 after repaying for 18 months and settled £7640.49
Interest rebate £2019.90
Insurance Rebate £1461.93
APR looks to be 8.3%

I have not received my copy of the agreement yet but co-op have just rang and given me these figures.

I have claimed misselling as i was told it was best to have this and pushed into it by the seller of the loan. I was not given the opportunity to get it elsewhere either and it was a single premium too. How much would my claim be for looking at the figures i have been given by them.

I don't think the premium covered the full 7 years also.

From what i can see she has told me all the figures as the total cost of the loan was £14112, we repaid to them £3024 in repayments and settled at £7640.49 so how are these rebates worked out.


How much would my claim actually be including the 8% per annum

Just a rough idea would be ok for now

tiggrae

marshallka wrote: »

Need some help with calculations

Had Loan from co-op in December 2002 for £8100
PPI single premium £2588.84
repayments were £168.00 per month for 7 years
Settled on 9th July 2004 after repaying for 18 months and settled £7640.49
Interest rebate £2019.90
Insurance Rebate £1461.93
APR looks to be 8.3%

I have not received my copy of the agreement yet but co-op have just rang and given me these figures.

I have claimed misselling as i was told it was best to have this and pushed into it by the seller of the loan. I was not given the opportunity to get it elsewhere either and it was a single premium too. How much would my claim be for looking at the figures i have been given by them.

these figures are a bit rough - but I worked out the ppi element was about 24% of the total - therefore 24% of £14112 (168 x 84) = £3386.88

you paid approximately 18 payments of £40.32 (24% of 168) which totalled £766.08

so 3386 - 766.08 - the rebate of 1461.93 = £1158.15

therefore you paid 766.08 + 1158.15 = 1924.23 - the statutory interest against all that comes to 681.63 - totalling £2605.86

in response to your PM - not yet , but got 3 in at the moment, all 3 are awaiting adjudication, but they've passed the initial 2 stages of administration and case worker - which is where they would normally be rejected - so fingers crossed

di3004

tiggrae wrote: »

try this
Unfair Rebate Settlement/Account policy number –

Dear Sirs

With regard to the above, upon early settlement of my loan in November 2005, I only received a small proportion of rebate against the Payment Protection Insurance, which I believe to be unfair under the Unfair Consumer Contract Terms Regulations 1999, especially considering the loan / PPI was taken over 25 years and settled only one year later

I am also aware the FSA have stated Companies should provide a fair refund upon early settlement.

Also, as only a small proportion was rebated, yet your own Marketing state, ‘if settle early you may be entitled to a refund’ in my opinion I did not receive a refund and believe this statement to be mis-leading and amounts to Negligent Misrepresentation under the 1967 Misrepresentation Act.


In summary, I do not feel I was treated fairly, should you fail to uphold my complaint by which I believe you unlawfully deprived me of approximately £3722.68, if this amount plus 8% Statutory Interest is not forthcoming, upon receive of your final response I will without further notice take my complaint to the Financial Service Ombudsman, on the grounds of an Unfair Settlement Rebate.

I look forward to receiving your response within 14 days of this letter.


Yours faithfully

Brilliant, thank you Tiggrae, yes I agree your copy looks more professional and the part, so I will use this, thank you so much indeed, I will get cracking with this now then and get posting.;)

Thanks again.

Di.
xx

marshallka

tiggrae wrote: »

these figures are a bit rough - but I worked out the ppi element was about 24% of the total - therefore 24% of £14112 (168 x 84) = £3386.88

you paid approximately 18 payments of £40.32 (24% of 168) which totalled £766.08

so 3386 - 766.08 - the rebate of 1461.93 = £1158.15

therefore you paid 766.08 + 1158.15 = 1924.23 - the statutory interest against all that comes to 681.63 - totalling £2605.86

in response to your PM - not yet , but got 3 in at the moment, all 3 are awaiting adjudication, but they've passed the initial 2 stages of administration and case worker - which is where they would normally be rejected - so fingers crossed

Wow wee, thanks tiggrae, they have rang up this morning to say that someone is looking into it and that i cannot go to FOS until they have done. I was adamant about the misselling and they said i should have a reply shortly.

roctw

m.colak wrote: »

Ok first things first:

Single premium loans are ones where the PPI is added as a one of payment and interest is charged on top of it.

Mulitple premiums are used in the case of credit cards where the PPI is calculated monthly and therefore the figure changes however interest has been included in the figure.

Front Loaded policies are ones where the PPI/PPI Interest and Interest ion the loans are paid off first before you actually see your actual loan decrease.

Non-secured loans usually have interest previously worked out on the whole of the figure and therefore payments stay the same all the way through the loan.

Secured loans/mortgages are affected by interest rates and therefore the amount of PPI interest can go up and down.

As for your IVA if it has already been settled then the only thing the company will try and do is withhold a certain amount of the refund due to loss in interest which they could have received if the loan hadn't been frozen. In ALL cases where there is an IVA i would recommend after the inital letters and getting their final response (whether you agree or disagree) go to the FOS to ensure you get the best deal.

Thanks for this - I drafted the letter below using MSE template. Do you think I should be upfront and mention the IVA in this letter? And if anyone could comment on whether the letter is okay.

Much appreciated!!

"I have recently being going through some old documentation regarding my HFC loan. My husband and I purchased the above policy from you in 10th April 2001 but now believe that we were mis-sold this policy.

Neither my husband nor I were given the correct information when the policy was sold to us. Your salesperson did not tell us that the policy was optional and also implied that taking out the policy was essential for us to get the associated credit.

We were also not made aware that the policy was to be paid by a single lump sum premium covering the whole of the policy term or that this was to be funded by means of a loan, on which interest would be payable.

As this loan was to consolidate debts and reduce our outgoings if I had known all of the above I wouldn’t have taken out this insurance.

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint."