PPI Reclaiming discussion Part II

catinthehat1

PPI mis-sales – should redress take
benefi t of cover into account?
a lender fi rm writes …
Q I am dealing with a customer’s complaint
about payment protection insurance that we
sold in similar circumstances to those of Mr and Mrs J,
outlined in issue 71 of ombudsman news (case 71/2).
I understand why the ombudsman upheld that
complaint. However, it seems that the redress ordered
did not take account of the fact that Mr and Mrs J had
had the benefi t of cover under the policy for a period.
I would be interested in your comments on this.
A Our approach to redress for the mis-sale
of payment protection insurance (PPI) policies
is broadly that the consumer should be put back in
the position they would have been in, if the mis-sale
had not taken place.
In most circumstances, where someone selling
an insurance policy has failed to point out signifi cant
relevant features, the buyer can, in law, decide
to cancel the policy and be returned to the position
they were in before the sale.
We take a similar view. We frequently provide for
consumers to get back the premium, plus any other
amounts they have paid (such as interest on loans
to cover the cost of the premium).
In most of our work on PPI mis-sales, we can see
that the consumer would not have bought the policy,
had relevant features been pointed out. This was the
position in the case of Mr and Mrs J, in case 71/2 in
the previous issue of ombudsman news.


This was in Q & A in today's issue

catinthehat1

marshallka wrote: »

catinthehat, i don't know whether you read but my co-op one has gone to the adjudicator now:j . But co-op still have not provided them with the info so going to take a little longer he says. :mad:

But at least i will know soon one way or another.

That's good isn't it? How did you know that it had? How long will it take once that happens? Does it depend on the company? Do FOS impose a time limit on them?

catinthehat1

I was worried with my complaint against FP - as our 5 years of insurance will end early next year, but it seems that FOS are not bothered about that which is encouraging:p

marshallka

catinthehat1 wrote: »

That's good isn't it? How did you know that it had? How long will it take once that happens? Does it depend on the company? Do FOS impose a time limit on them?

I had a phone call just as I had picked up the phone to ring them. It was the adjudicator and he said that usually a firm will provide information quick when FOS asks for it but the co-op had not done so he said it could take a little longer. I asked him what would happen if they do not provide it and he said then we just uphold the complaint in your favour. I just think co-op are stalling here as they took over 2 months to send me copies of the agreements and also told me that they had the agreements in front of them and that no ppi had been applied as they could tell. They were just trying to put me off at stage one then when i requested a full SAR they sent a page with bank charges on. I then complained again and have just received my SAR this morning. It actually states the phone calls of me asking for the agreements.

Fos says that they have given another email to the co-op and i don't really know how long they give them.

catinthehat1

I was really worried about the fact that we are claiming PPI from FP when we the loan is still ongoing, and the fact that they would just take it off what we owe - just found this on the success board - which is also encouraging

Had a loan with Halifax for £12000- only found out that £2400 was for ppi by chance, the added it and i didnt have a clue, have been paying this loan off for years now!!

Sent them a letter advising i have no idea about this, they wrote back and said we will refund the amount - Result....

However, because my account is still in arrears, instead of giving it back to me like they said they would (in their letter they said 'without any admission to liability, we will put you back in the same postion had you not taken the loan out in the first place)they also agreed to pay the interest which was £800 and then on top of this they would also refund 8% interest as per FSO rules. I was so happy about this, it could not have come at a better time either as i need to move out so it would be a deposit on a flat!!

However, without advising me, they decided to deducted this off the balance i still owed them! The cheek-I spoke to the FSO and they advised that they could not do this and that it was ultimately up to me how i would choose to use the money.

I have now sent them another email to ask them to put it right and refund me via cheque or put the balance into my bank account.

That money would be really helpful so i am going to push for this. Surely they can not just reduce the balance?? Can they?? Without consulting me??

Have now got the MD's email address hehe!! Let me know if anyone wants it... I find it usually helpos if you go to the top dog in teh first instance, rather than speaking to different monkeys...lol. You get a really quick response too..

positive isnt it?

marshallka

catinthehat1 wrote: »

I was worried with my complaint against FP - as our 5 years of insurance will end early next year, but it seems that FOS are not bothered about that which is encouraging:p

Laini always says that the FOS will not defend Firstplus cause of their t and c's. Mine is about unfair rebate as the selling was outside their jurisdiction so i have resubmitted on the lender under this. I don't know whether they can look at it yet or whether i have worded it right so i rang today and was told that someone would call me with regards to this. Perhaps i will hear from them tomorrow and lets hope it is something they can look into. If not i will resubmit until it is and word it different each time:D

catinthehat1

marshallka wrote: »

Laini always says that the FOS will not defend Firstplus cause of their t and c's. Mine is about unfair rebate as the selling was outside their jurisdiction so i have resubmitted on the lender under this. I don't know whether they can look at it yet or whether i have worded it right so i rang today and was told that someone would call me with regards to this. Perhaps i will hear from them tomorrow and lets hope it is something they can look into. If not i will resubmit until it is and word it different each time:D

I wonder if your case will change now if the FSA use this ruling? As it's about PPI?

marshallka

catinthehat1 wrote: »

I was really worried about the fact that we are claiming PPI from FP when we the loan is still ongoing, and the fact that they would just take it off what we owe - just found this on the success board - which is also encouraging

Had a loan with Halifax for £12000- only found out that £2400 was for ppi by chance, the added it and i didnt have a clue, have been paying this loan off for years now!!

Sent them a letter advising i have no idea about this, they wrote back and said we will refund the amount - Result....

However, because my account is still in arrears, instead of giving it back to me like they said they would (in their letter they said 'without any admission to liability, we will put you back in the same postion had you not taken the loan out in the first place)they also agreed to pay the interest which was £800 and then on top of this they would also refund 8% interest as per FSO rules. I was so happy about this, it could not have come at a better time either as i need to move out so it would be a deposit on a flat!!

However, without advising me, they decided to deducted this off the balance i still owed them! The cheek-I spoke to the FSO and they advised that they could not do this and that it was ultimately up to me how i would choose to use the money.

I have now sent them another email to ask them to put it right and refund me via cheque or put the balance into my bank account.

That money would be really helpful so i am going to push for this. Surely they can not just reduce the balance?? Can they?? Without consulting me??

Have now got the MD's email address hehe!! Let me know if anyone wants it... I find it usually helpos if you go to the top dog in teh first instance, rather than speaking to different monkeys...lol. You get a really quick response too..

positive isnt it?

I have read of a few cases like this where its a case of "you owe my money and i owe you money" and we will take one from the other. Personally i would not mind that if i had a loan - just to win would be good.

I would like to have had the choice though....

marshallka

catinthehat1 wrote: »

I wonder if your case will change now if the FSA use this ruling? As it's about PPI?

Who knows - perhaps they know something already.. Just wish they would let me know too:mad:

catinthehat1

Found this on BBC website
The spokesman said the FOS was particularly worried that banks and other organisations in the financial services industry were failing to deal with initial PPI complaints properly.
"We are particularly concerned that firms should have a very good idea of how we deal with unresolved complaints but they are still coming through," he said.
"The complaints are so similar to those we have already settled in consumers' favour that we are worried that firms are not learning the lessons from this and are not treating customers fairly," he added.
I'm starting to feel a bit excited about this!!!!