PPI Reclaiming discussion Part II

tiggrae

di3004 wrote: »

Just looking back at this now, I assume the reclaim would be that of £7644.43, as they deducted the £848.07 off the amount for having this for a period of 9 months ?:rolleyes: , but not certain, then of course an 8% interest would be requested ???:rolleyes: Any thoughts on this, thanks folks.:D

(this loan was taken in Nov 2005 - over 25 yrs - settled 9 months later for a loan advance).

Di.
xx

I'm a bit confused here, they gave you a rebate of £7644.43 against a policy of £8492.50 - what exactly are you asking Di - a rebate is the amount they took off when you repaid your loan - if you're going for mis selling then its the £848.07 you actually paid during your 9 months of the loan

chartreuse_2

tiggrae wrote: »

I take it the offer is against the first account only and is worded as a full and final settlement - what that means is if you accept you won't be able to take that first claim to the FOS - so really does depend how much you need the money now as to whether you accept what they've offered without interest. As for the other two, when were they taken out as the date of these will determine whether you can take your complaint to the FOS

Thanks for replying

Yes, the offer is a "full and final" for the oldest of the accounts, taken out about 6 years ago. I'm not desperate for the money right this minute, so perhaps I should at least write back asking for interest - is 8% compound the usual rate?

The other two are newer, so I'm pretty sure I could go to the FoS. I'm also fairly sure that the Ombudsman would take a dim view of what looks like a stock "You're wrong because we never do anything naughty" response, which is why I figure another letter might be in order.

di3004

tiggrae wrote: »

I'm a bit confused here, they gave you a rebate of £7644.43 against a policy of £8492.50 - what exactly are you asking Di - a rebate is the amount they took off when you repaid your loan - if you're going for mis selling then its the £848.07 you actually paid during your 9 months of the loan

Hi there Tiggrae and thanks for your reply.;)

I have not explained myself here have I ?:o

In November 2005 we had a loan arranged by the brokers e-loan, this was for £43,000 plus another £8492.50 in which was the ppi, they had arranged this with Nemo personal advance, but in July 2006 we had a loan advance of £55,000 plus approximately £11K of PPI on top. This then made this up to £66K


Anyway to have this new loan the first one that was arranged by e-loan brokers had to be settled, but it was only when we had taken the loan advance we had learnt that we were mis sold the on the first loan ppi arranged by e-loan and during the advance as we were forced into taking this ppi as heard on recordings by the ombudsman himself.

We did actually win our case on the nemo advance mis selling through the FOS who stated we would have to deal with the brokers for the first part of the mis selling as these are 2 separate cases. As he believed we had a case with the brokers too due to our lack of knowledge of this policy.

They (Nemo) had calculated this amount as shown in the above calculations, but we are trying to pursue eloan on the mis selling and not that of the rebate, we had nothing to show for this as such, no refund, even though they have rebated against a new agreement the first one was still mis sold by the brokers, so it an amount I need to know to reclaim sort of thing, so that I can add this in the letter.

If we did not take out the ppi from the first loan then it would have just been the loan to recalculate etc and not that of ppi.

They were then also regulated by the FSA.

Sorry to cause confusion here, I'm confused myself with this lol.:o

Cheers.
Di.
x

Janebo12

Just wanted to pass on some information for those dealing with "the bank that likes to give you extra"

I sent in my complaint re missold PPI on a personal loan on 12th March and after the initial fob-offs I was sent a letter saying that they were looking into into it. It's coming up on 20 weeks since I first contacted them!!!!

I spoke to FOS last week about time-scales and they logged my complaint, though I hadn't yet sent any paperwork though.

Anyway, chased up the bank today and their customer adviser has told me (on the QT!!) that they have put all of these claims on hold so that they can re-review them all, as when they have declined a complaint and people have gone to FOS, the majority of people have then won through FOS. :rotfl:

He actually advised me that my claim will probably be quicker if I go through the FOS as he can't give me an estimate as to how long it would take through the bank. Will get my paperwork off to FOS now!

Hope this helps.

mcg1098

Hi,

hubby took out a loan with citifinancial and after reading the ppi article i have found the paperwork but am confused regarding if he was mis-sold.

There is a document which is hand written by the member of staff and has a few areas where they have asked about his potential risks where he has replied he has cover through work, mortgage, life cover etc at the summary box it states "fully discussed all insurance available and mr sees himself adequately covered in all areas and makes it a usual habit of redundancy cover - display quote. My hubby has signed under this and also under"i confirm i have received a full explanation of the insurance product range.

Another document is the insurance application form stating the full package costing £745 but our copy is not signed by my hubby where it should be, neither is the witness section signed.

I am not sure if we can claim as he does not remember saying he wanted the full creditcare package...

can anyone advise please?? many thanks...

di3004

Hi there

Just come across some of the paperwork which was provided by the FOS of when we were complaining of the PPI agains Nemo, here is a bit of what they wrote:

CIRCUMSTANCES:

Nemo had responded via its solicitors. It maintains that it was not responsible for the sale of the "first PPI policy" and suggests that Mr & Mrs XXXXX borrowing of £55,000 was actually made up of a redemption figure of £51,203.68 for the existing loan and additional borrowing of £12,000. It again reiterates that the rebate on the EXISTING PPI premium by placing the new borrowing with it was significantly advantageous and if Mr & Mrs XXXXX had sought to consolidate elsewhere, a higher redemption figure would have applied for the existing borrowing.

Nemo also confirms that an assessment of Mr & Mrs XXXXX requirements was carried out and the terms of the "SECOND PPI policy" were the same as the first and the fact that a non-propotionate refund would be received if the loan was settled early would have been explained by the "broker" selling the first loan.


Nemo suggests Mr & Mrs XXXXX problems have stemmed from the fact that they cancelled the payment protection policy outside the 30 day cancellation period on advice from a finance broker and that it is this advice, rather than any given at the point of the sale that has resulted in their current predicament. In conclusion Nemo confirms that the significant rebate provided by it should be taken into account and has invited me to reconsider my position on the merits and suggests that by awarding the redress in the provisional decision I am providing "double recovery" as Mr & Mrs XXXXX would be entitled to keep the rebate from the first policy.

FINDINGS:
I have carefully re-considered all the evidence provided, including Nemo's comments and additional documentation sent in response to my provisional decidion in order to reach a decision that is fair and reasonable in all circumstances.

Communications do show that Mr & Mrs XXXXX were concerned about the "extreme cost" of the PPI and whether they had to take the insurance to have the further advance.
If they agreed to the PPI (because this would give them the preferential premium rebate, reducing the redemption figure for the existing loan from £51,910.42 to £43,559.25) enabling Nemo to lend them the additional £11,441 that Mr & Mrs wished to borrow for home improvements.
Therefore Nemo recommended the new PPI and confirmed that if this is not taken it could not lend the additional borrowing.

The policy sold in connection with the loan of July 2006 is a new policy and is not in any way connected to the policy on the previous borrowing.
As explained in my provisional decision Nemo had a duty to explain to Mr & Mrs XXXXX the full implications of agreeing to the policy including its total costs cover over the term and the implications of redeeming the loan early.
There is no evidence to suggest Nemo did this and by its own admission it relied on the fact that the policy with the original borrowing should have been properly explained by a third party broker and that because it was only providing a further advance, with a similar policy it did not have to explain it.


It is clear that Mr & Mrs XXXXX did not fully understand the transaction or the implications of taking the single PPI policy and that it is for that reason that I consider that the policy was mis-sold.
Nemo has suggested that the redress I seek to impose with result in Mr & Mrs XXXXX receiving "double recovery" I do not agree.
This is because Mr & Mrs XXXXX did not recieve a refund of more than the original premium when it redeemed the existing loan, even taking into account the special rebate, and therefore they were still financially penalised.

I therefore conclude that this was mis sold to Mr & Mrs XXXXX the PPi policy in connection with the July 2006 loan.
The PPI policy was cancelled in October 2006 and only a partial rebate was applied to the loan amount. (£1,998).

(It is also mentioned that we can also try to pursue as a separate issue for the brokers about the first mis selling of PPI that was still used in calculation for rebate settlement).

tiggrae

chartreuse wrote: »

Thanks for replying

Yes, the offer is a "full and final" for the oldest of the accounts, taken out about 6 years ago. I'm not desperate for the money right this minute, so perhaps I should at least write back asking for interest - is 8% compound the usual rate?

The other two are newer, so I'm pretty sure I could go to the FoS. I'm also fairly sure that the Ombudsman would take a dim view of what looks like a stock "You're wrong because we never do anything naughty" response, which is why I figure another letter might be in order.

hi the 8% is statutory interest - the amount a court would allow as you've been unlawfully deprived of money. It's calculated on a daily rate basis against each monthly premium paid - the easiest way to calculate how much is due is to take the PPI monthly premium and feed it into the bank charges calculator on the bank charges forum- it'll work it all out for you. As it was 6 years ago this amount will be quite substantial - the older the premium the more interest is applicable

Laini

I wrote to Barclaycard in feb 2008 requesting a refund of my ppi as I hadnt realised it was on my account.- they said no and it was there as a benefit for me and it was upto me to take advantage of it when it was required.

originally I was approached by a rep at a shopping centre promoting barclaycard.I think it was 0% balance transfers
it was in the january sales 2004 and my little boy was 2yrs old.
so I said sorry but I cant stop and was just going to take the form off her just to get off my back but she was pushy and said she would fill the form out
so the girl filled the form in and I just signed it,
I thought nothing of it then in march 2004 I got a phone call from the fraud dept at Barclaycard asking if I had recieved the card.
I didnt have any correspondence from them at all not even to say I had been accepted.
the police became involved and it was tracked down to my new postman who had intercepted the post and spent 2 grand on the card.
Barclaycard cleared it so there was nothing to pay.
I have used the card over the last 4years and cleared it 3 times plus have had a few late payments ,they did reduce the credit on it too but sometimes after adding the interest PPI then more interest then charges it took me over my limit and I would get charged again for being over limit and the minimum payment didnt clear it- very frustrating
so ....
I am wanting some help to draft a 2nd letter asking for the PPI payments can anyone help?

tiggrae

mcg1098 wrote: »

Hi,

hubby took out a loan with citifinancial and after reading the ppi article i have found the paperwork but am confused regarding if he was mis-sold.

There is a document which is hand written by the member of staff and has a few areas where they have asked about his potential risks where he has replied he has cover through work, mortgage, life cover etc at the summary box it states "fully discussed all insurance available and mr sees himself adequately covered in all areas and makes it a usual habit of redundancy cover - display quote. My hubby has signed under this and also under"i confirm i have received a full explanation of the insurance product range.

Another document is the insurance application form stating the full package costing £745 but our copy is not signed by my hubby where it should be, neither is the witness section signed.

I am not sure if we can claim as he does not remember saying he wanted the full creditcare package...

can anyone advise please?? many thanks...

if he didn't ask for it then it was mis sold

di3004

Hi again

Just finding more documents regarding my first loan of e-loan the brokers.

This one below is the brokers of Nemo who sold this product:

All this was found within the SAR provided by the lenders of nemo with the e-loan paperwork, all their calculations are confusing me, so I have just copied this from one of the documents and if someone could put me in the picture for this that will be a good help thanks.;)

I had this running from Nov 2005 until July 2006, the ppi was not cancelled with these, but 3 months after taking out a loan advance with Nemo the lenders.
................................................................................................
Cash loan £43,000
PPI £8.492.50
Total loan £51,492.50
Mthly rate 0.600%
Apr 7.4%
Monthly repayment: £370.53
First repayment 18/12/2005
Assuming you keep to the term of the agreement the interest would be £9840.24
Total price for cover £18332.24
Only covers first person on agreement.
........................................................................................................

PPP SINGLE POLICY

NEMO PREMIUM £8492.50
DATE OF INCEPTION 21/11/2005
DATE OF CANCELLATION 07/07/2006
AGE IN MONTHS 9


CASHBACK PREMIUM £1,679.15
CASHBACK COMMISSION £43.00
CASHBACK IPT £86.00

LASU PREMIUM £1,650.34
LASU COMMISSION £4,951.45
LASU IPT £82.56

Cancelled after 30 days £1,258.25 (15% this should be below 19%)
Further Advance with claims/Arrears £6,271.65 (74% this should be below 78%)
FURTHER ADVANCE £7,633,28

FACTOR 75.30% = 75.30
.......................................................................................................................
Then loan advance was that of:
£55,000
PPI Single for first person on agreement only £10,862.50
Total loan: £65,862.50
Mthly Int rate: 0.678%
APR 8.4%

Over 300 months
Monthly payment: £514.29

If keeping to this for the whole term the interest would be £14,583.36
The total price you would pay for the cover is: £25,445,86.
.................................................................................................
We had cancelled the ppi over the 30 days limit, where only £1998.32 was deducted in rebate for this, but this one has been won by the FOS where over £12K was refunded, plus £250 compo.
................................................................................................................
In the write up from the FOS the ombudman adds :
If Mr & Mrs XXXXX are unhappy with the rebate that they received when the 2005 loan and policy were redeemed they are free to pursue the broker that sold for the balance if they consider that the policy was also mis sold.