PPI Reclaiming discussion Part II

BIKERCHIC

I'm looking at the letter now and it does state Less rebate of Insurance 0.00

Should I send a letter to them adv mis-sold PPI with amount you advised,
would my reasons be like only PPI covered for first named although loan in joint names, and not advised or explained about PPI ?

And it sounds like can't do much about the high settlement fig?


Thanks very much for your help :A

di3004

BIKERCHIC wrote: »

I'm looking at the letter now and it does state Less rebate of Insurance 0.00

Should I send a letter to them adv mis-sold PPI with amount you advised,
would my reasons be like only PPI covered for first named although loan in joint names, and not advised or explained about PPI ?

And it sounds like can't do much about the high settlement fig?


Thanks very much for your help :A

Hi there hun and yes go for it, just like what Marshallka has suggested, you have been ripped off here, go and get it all back hun.;)

Good luck!
Di.
x

tiggrae

marshallka wrote: »

Full details here tiggrae

ash loan amount £43,000

PPI £8,492.50

Total Loan £51,492.50

Monthly payments = 300
Monthly payments = £370.53

Monthly Interest Rates
(variable - see clause 8 2.2 overleaf) 0.600 %
APR (assumes no variation in rate) 7.4%

(Variable by notice to you if the Interest Rates varies, or in the case of the first payment, when this is due more than 30 days after execution of the Agreement)

Signed 18/11/2005
First payment to be made on 18/12/2005

PAYMENT PROTECTION INSURANCE

IF AN OPTIONAL PPI PREMIUM HAS BEEN SHOWN IN THE LOAN ABOVE THEN:

1. The total amount of the premium (inclusive of the Insurance Premium Tax at the current rates) for your cover is shown in the Optional Payment Protection Premium Box.

2. The premium is set and will not vary or be reviewed during the 60 months period of cover.

3. There are no additional fees or taxes payable in respect of the premium other than interest on the premium loan shown in the Optional PPI premium box.

Assuming you keep to the term of the agreement and that the interest rates do not vary, this interest would be £9840.24.

The total price you would pay for cover is £18332.24, this will however change in interest rates change.

You understand that the phrase ASU refers to Accident, Sickness & Unemployment cover that you have selected.
"Single Life, Single ASU Cover".
.................................................. ................................................
Written explanation of settling original agreement:

The value of the original agreement settled by new loan outstanding balance (on the day the further advance settles it) plus any interest that has accrued on the account since the last montly instalment was paid.

In your individual case:
Balance = £51022.52 + Accrued Interest @ £181.16 = £51203.68

When the Payment Protection Policy is taken, the TOTAL outstanding balance of the account is the loan amount + the payment protection premium.

In your individual case:
Loan amount @ £43,000 + Payment Protection Premium @ £8492.50 = £51,492.50.

However, upon settling of the original agreement we give a rebate for the above mentioned protection (ie: for the remainder of the 60 month term that has not been needed).

In your individual case:
Payment Protection insurance Premium = £8492.50

Number of months cover ran for (ie: length of time the original agreement ran) = 9 months
Rebate applied to account (for 51 months of unused cover) = £7644.43

(Therefore the 9 months of cover cost £848.07)

The above rebate (£7644.43) was then applied to the earlier figure (ie: the balance of the account + accrued interest), and the result was the amount that was used to settle the original agreement.

In your individual case:
Balance + Accrued Interest: £51203 - £7644.43 (the rebate of the payment protection).

Figure used to settle the original Nemo agreement = £43559.25.






I think i am right here in that the PPI paid was only £850 odd in the end. Please check this tiggrae as we need to know!!!!!!!!!!!

I did the PPI element was 16.49% of total loan £51492 = 8491.03

9 x 61.10 (which is 370.53 x 16.49%) = 549.90
8491.03 - 549.90 (repayments made above) - 7644.43 (rebate of the insurance) = 296.70 + repayments made 549.90 = £846.60 Total PPI actually paid

The second loan was taken to the FOS and she won the misselling!!!

If you worked it out like this
9 x 61.10 = 549.90
total of ppi over term 300 x 61.10 = 18330.00 (total cost of the PPI) - 549.90(repayment made against the PPI 9 x 61.10) - 7644.43 (rebate given on the PPI = £10135.67

£10135.67 + £549.90 = £10685.57 would be what she paid for the PPI and she did not as she borrowed £43K, PPI was £8492 made repayments for 9 months at 370.53 = 3334.77 and then settled £43.5K so that means that they would be paying Di for having the loan.

I think this was like a seperate agreement on the PPI... They seems to have split the loan and PPI when she settled.

yes I know i worked it out for her

if the ppi was mis sold then it's :

300 months - so 16.49% of £370.53 is £61.10

61.10 x 300 = 18330.12 and she received a rebate of just 7644.43 - means she could have paid £11185.69 for 9 months worth of PPI

if it wasn't mis sold and looking at an unfair rebate then it's 18330.12 - 7644.43 - 549.9 = 10635.79

davidt701

Hi Di(3004)

I already sent the complaint letter to Barclaycard and they say that I do not have a case. They have a recording of me accepting the PPI and the 5 year period. Even though I accepted it though I didnt realise that it would cost me dearly to get out of the loan early.
I spoke to the complaint manager about my letter and he said they did not aggree with my case and he would sent me the settlement figure. After seeing (details on first message) I am not sure if I should go straight to the FSA with this now as Barclaycard are not budging. I first need to know if I have a case though. I don't think I have been mis-sold because of my circumstances, but I do feel mis-sold as I was not aware of the heavy penality for paying off the loan early.

These banks are a real pain in the neck.

cheers

d

di3004 wrote: »

Hi David
welcome.;)

Most of us here have or had fallen in that trap hun, but do not worry now because this is becoming a big issue for the FSA etc and you can try to reclaim this back on the grounds of being mis sold.

Here is a link for you to check out.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

If any of these occur to you, there is also a template letter link on that above link too, and add your own reasons, try to give a full explanation to every reason of why you feel you were mis sold.

Yes I agree the whole thing is a rip off !!

Get a letter in hun and complain, they have 8 weeks as from your letter to get back to you, it may take another letter if the first one is not successful which is mainly the case, so do not worry if they fob you off first time round, there are other steps to take.

As soon as you receive a response, let us know and we can move on to the next step from here.;)

Good luck David and please post anytime.

Di.
x

marshallka

tiggrae wrote: »

yes I know i worked it out for her

if the ppi was mis sold then it's :

300 months - so 16.49% of £370.53 is £61.10

61.10 x 300 = 18330.12 and she received a rebate of just 7644.43 - means she could have paid £11185.69 for 9 months worth of PPI

if it wasn't mis sold and looking at an unfair rebate then it's 18330.12 - 7644.43 - 549.9 = 10635.79

But tiggrae Di borrowed 51492 (which included the ins) and settled after 9 months of payments and settled £43K. How can she go for an unfair rebate when she never paid the PPI in the first place

Di had loan of £43K
PPI was £8142
Total Loan £51492
REepayment 300 x 370.53
Repaid for 9 months and then settled with a settlement figure of £43500. How can she be looking at an unfair rebate of £10635.79 if she never paid the PPI interest at all. She was rebated for most of the PPI and they never calculated the interest of the PPI in the settlement figure. I am so confused here.

If this was so then they would have paid Di about £10K for having the loan.

catinthehat1

Just to let you know I received a letter today from FOS re FP - my case has now been assigned to an adjudicator - yipee!!!!!!!!!!:j Just a standard letter re adjudicators role and he is going to collate information from the company - so I will let you know when I hear anymore, I'm not sure how long it will be now??? Does anyone have any idea???
Thanks in advance

di3004

davidt701 wrote: »

Hi Di(3004)

I already sent the complaint letter to Barclaycard and they say that I do not have a case. They have a recording of me accepting the PPI and the 5 year period. Even though I accepted it though I didnt realise that it would cost me dearly to get out of the loan early.
I spoke to the complaint manager about my letter and he said they did not aggree with my case and he would sent me the settlement figure. After seeing (details on first message) I am not sure if I should go straight to the FSA with this now as Barclaycard are not budging. I first need to know if I have a case though. I don't think I have been mis-sold because of my circumstances, but I do feel mis-sold as I was not aware of the heavy penality for paying off the loan early.

These banks are a real pain in the neck.

cheers

d

Hi there hun
Okay thanks for confirming this and sorry I had mis read on this.;)

Right if this was stated as a "final decision" you can now complain to the FOS here:
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

If they do not state final decision then you can write again, to ask them to reconsider as you are not happy with the first response they had given you due to your reasons of why you believe you were mis sold.

Tell them that if you do not receive a favourable response you will not hesitate but will take your complaint to the FOS.;)

Enclose all copies of correspondence you have received to support your complaint.

If you require further info hun, please feel free to post again and anytime.

Good luck
Di.
x

tiggrae

tiggrae wrote: »

yes I know i worked it out for her

if the ppi was mis sold then it's :

300 months - so 16.49% of £370.53 is £61.10

61.10 x 300 = 18330.12 and she received a rebate of just 7644.43 - means she could have paid £11185.69 for 9 months worth of PPI

if it wasn't mis sold and looking at an unfair rebate then it's 18330.12 - 7644.43 - 549.9 = 10635.79

these calculations are always harder when the loan is paid off early as you have to work out what you would have paid minus any rebate - the difficulty is then on the interest element (ie has the interest element been included in the rebate figure or has it been included in the main loan settlement figure)

the assumption I always work on is to work out the full amount which would have been paid minus the rebate is basically the amount you've paid in PPI. I use the assumption any rebate on interest will be included in the total rebate figure - as I always think that when calculating an early settlement a lender will never work it out to be in your favour. If they can prove otherwise then that's fine - but I'll always initially work it out at the highest figure and get the lender to prove otherwise !!

So what nemo are saying is that they charged £850 for 9 months PPI and they didn't calculate additional interest on top (very Unusual !!!) when the amount paid for the PPI to that date was £554.50 (ie 9 x 61.60) so they under rebated by just £295.60

tiggrae

catinthehat1 wrote: »

Just to let you know I received a letter today from FOS re FP - my case has now been assigned to an adjudicator - yipee!!!!!!!!!!:j Just a standard letter re adjudicators role and they he is going to collate information from the company - so I will let you know when I hear anymore, I'm not sure how long it will be now??? Does anyone have any idea???
Thanks in advance

which company is it with ?? If it's a high street bank - then 6 weeks, followed by a further 8 weeks to work out the repayment if your claim is upheld. If it's not a main stream lender then they tend to drag their heels on sending the FOS information

marshallka

catinthehat1 wrote: »

Just to let you know I received a letter today from FOS re FP - my case has now been assigned to an adjudicator - yipee!!!!!!!!!!:j Just a standard letter re adjudicators role and he is going to collate information from the company - so I will let you know when I hear anymore, I'm not sure how long it will be now??? Does anyone have any idea???
Thanks in advance

So pleased for you catinthehat. :beer: