PPI Reclaiming discussion Part II

di3004

woodybuzz wrote: »

I have sat down today to draft a letter recaliming PPI but first some facts...

£15000 loan with HSBC (graduate loan) taken in June 2005. Repayment of £230 a month plus £65 PPI pyt.

PPI of £5472 added as a single premium - all done via secure e-mail / internet.

Now, the policy states I cannot cancel, but I now know this can be done (thanks to MSE et al). However if I cancel and am unsuccessful (possibly as it was a "non advised" sale) this means that they would re-calculate the loan on say the £11k outstanding at the same APR (7.9%) over the remaining period (42 month). This works out as £300 a month meaning I am £5 amonth better of and lose the "insurance" - so in a nutshell is it worth the risk?

I do believe I was mis sold as if I'd known the cost was so exhorbitant I would't have taken it, and the fact it was a loan on top of a loan was never explained to me.

This seems more of a gamble rather than anythng else! Any suggestions?

In my personal opinion if I were mis sold I would be fighting to get it all back, obviously you want to be sure on this first which is understandable, I'm sure one of the others here will also explain your best options here just to be on the safe side with this.
(with it being a graduate loan - which is new to me really but should still work out the same as a normal loan with rules to follow).

But with me, also others on here, since learning of the mis selling in the media, we feel bitter about the sales of this and the way this was done and feel we should be getting our money back.

Keep checking here for some further advice here hun, as I do not want you to just take my word for it here.

All the best with this.;)

Edited to come back in, Marshallka has given you very good advice above hun. Good luck!
Di.
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di3004

Doing dinner, back soon.:D

woodybuzz

marshallka wrote: »

woodybuzz, it is worth claiming on this. You took the loan after 2005 and they had rules to follow and clearly did not follow them and explain the policy. I would certainly not give up. Its your money here and you really don't have a lot to lose do you?? Go for it. You will be fine.

Also by saying what you have above are you saying there is nothing wrong with the insurance.????? Just go for the misselling here and perhaps wait to cancel til after. You will only get a small amount back anyway.

Thanks marshalka. Does this mean I can try and reclaim without actually cancelling the policy? I presume you are saying that if I am successful in reclaiming - then cancel?

I would happily stop the PPi if it meant that I stopped paying the £65 a month but if the above £300 scenario happens I go from paying £230 a month on the loan to £300 a month on the loan. How is this fair?

Will the loan payments only stay at £230 if I "win"?

Help

woodybuzz

I was going to write...

Dear Sir,

I purchased the above policy from you in April 2005 but now believe that I was mis-sold this policy for the reasons detailed below. As such I wish to inform you of my decision to cancel the Credit Protection Insurance sold with the above loan.

At the time it was taken out I consider the policy was not fully explained to me, in that

§ It is a single premium policy, i.e. it is in effect a loan on top of the original loan. If this had been properly explained to me at the time I would not have taken the policy.

§ It was not explained to me that there were (and remain) alternative policies available - at much less cost

§ It was intimated to me in the branch when I signed the agreement that all graduate loans were expected to have PPI

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.


Yours faithfully,


What do you think?

Andy750

Hi all newbie here

Not sure if I'm doing this right fingers crossed:p

I took at a loan with the Lloyd TSB at the time back in 2001 for an of £15500.00, however for me to qualify for the loan the salesperson told me that i would need to purchase insurance protection for a one off premium of £3360.37 plus intrest which was added to the loan:mad:

I took out the templates from this web page saying that i was mis-sold the insurance and that the salesperson was pushy.

The reply i got was that I had signed the contract and i was made fully aware of the optional nature of the policy.

The letter then states that lloyds have no alternative other than to reject the complaint

My problem with this is the fact that the salesperson said that i would need to take out the insurance policy if i wanted the loan for that amount i then explained to the salesperson that I was Armed Forces and my job was secure and that even if i took ill i would still be paid.

I'm not sure what to do next any help in this matter would be greatful

PS Do the salesperson's get comission for selling the insurance policy???

di3004

Hi folks

Bear with me a little min , just got back from dinner, and will go through your posts the best I can now okay guys.....:D lol.

Di.
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di3004

woodybuzz wrote: »

I was going to write...

Dear Sir,

I purchased the above policy from you in April 2005 but now believe that I was mis-sold this policy for the reasons detailed below. As such I wish to inform you of my decision to cancel the Credit Protection Insurance sold with the above loan.

At the time it was taken out I consider the policy was not fully explained to me, in that

§ It is a single premium policy, i.e. it is in effect a loan on top of the original loan. If this had been properly explained to me at the time I would not have taken the policy.

§ It was not explained to me that there were (and remain) alternative policies available - at much less cost

§ It was intimated to me in the branch when I signed the agreement that all graduate loans were expected to have PPI

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.


Yours faithfully,


What do you think?

Hello there.

Regarding your other question Marshallka will possibly get back to you on that one, but it all should be okay.;)

Well done, letter looks good, and if you feel you have covered all areas of how you believe you were mis sold then its ready to go.

Send by recorded post in order to check this out on "track and trace" on the Royal Mail Website, as you know they have 8 weeks, so as soon as this has been received by them, mark it on your calendar to keep an eye on the weeks.
hopefully they will get back to you before that.

If that letter is not successful another will have to be sent until you receive your "final decision" which should also state about taking it to the FOS.

Keep us posted and we will guide you to the next step.

Good luck!
Di.
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di3004

Andy750 wrote: »

Hi all newbie here

Not sure if I'm doing this right fingers crossed:p

I took at a loan with the Lloyd TSB at the time back in 2001 for an of £15500.00, however for me to qualify for the loan the salesperson told me that i would need to purchase insurance protection for a one off premium of £3360.37 plus intrest which was added to the loan:mad:

I took out the templates from this web page saying that i was mis-sold the insurance and that the salesperson was pushy.

The reply i got was that I had signed the contract and i was made fully aware of the optional nature of the policy.

The letter then states that lloyds have no alternative other than to reject the complaint

My problem with this is the fact that the salesperson said that i would need to take out the insurance policy if i wanted the loan for that amount i then explained to the salesperson that I was Armed Forces and my job was secure and that even if i took ill i would still be paid.

I'm not sure what to do next any help in this matter would be greatful

PS Do the salesperson's get comission for selling the insurance policy???

Hi there and Welcome.;)

Right hun, I have experience with dealing with these due to my few complaints, they have certainly fobbed you off here, and sent you a standard fob off response.

They also have that as an excuse that you signed it, we all have this excuse back from them, but you should write back to them now until you receive a final decision which also mentions about the Financial ombudsman service on their letter.

Write back and tell them you are not happy with their response, and will take this to the FOS if they do not uphold your complaint.

Tell them you had no choice and was made to sign the agreement in order of being told to you would only be accepted for this loan if you accepted the PPI.
Tell them you were not told otherwise, and it was not sold in your interest.

I think you have a good case here and the FOS will probably uphold this in your favour if it goes back to them.

Do you still have the copy of the first letter hun ?
If so what was the date on that letter you sent and the date on this letter you received?
We can then work out how long they have to get back to you on this, for instance as its normally 8 weeks and they responded in 6 weeks we can give them 2 weeks.;)

Thanks hun.
Di.
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pinknico

di3004 wrote: »

Pinknico

Have you heard anything further from the FSCS yet hun?

I do pop over on their web-site now and again to see what is what but they I think they update certain times perhaps.

Do you know of anyone else who have been through a claim with these at all?;)

No haven't heard anything. I have resigned myself to not hearing that they are in Default til next year and then another 6 months on top of that for them to check the claim. In normal circumstances this would have been looked at for the past 3 months and getting somewhere. It really annoys me that I know I have been mis sold and its not my fault Picture got itself into trouble and I have to wait so long.:mad:

di3004

pinknico wrote: »

No haven't heard anything. I have resigned myself to not hearing that they are in Default til next year and then another 6 months on top of that for them to check the claim. In normal circumstances this would have been looked at for the past 3 months and getting somewhere. It really annoys me that I know I have been mis sold and its not my fault Picture got itself into trouble and I have to wait so long.:mad:

Yes I know the feeling hun, its so damn frustrating and annoying that you have been mis sold and its like torture all over again I know......:mad: