PPI Reclaiming discussion Part II

pinknico

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???

If you explained you were in the armed forces it is my belief they should not have sold you this policy as the whole point of ppi is for out of work and sickness ,which you were already covered for. Did you point this all out to them in your first letter? if not do so in your second letter. This is clearly mis selling and if you don't get anywhere with them the FOS should uphold your complaint. Yes I am sure they got comission why else sell a policy to someone who is already covered?

di3004

pinknico wrote: »

If you explained you were in the armed forces it is my belief they should not have sold you this policy as the whole point of ppi is for out of work and sickness ,which you were already covered for. Did you point this all out to them in your first letter? if not do so in your second letter. This is clearly mis selling and if you don't get anywhere with them the FOS should uphold your complaint. Yes I am sure they got comission why else sell a policy to someone who is already covered?

I agree with what your saying Pinknico.;)

marshallka

woodybuzz wrote: »

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

You do not have to stop the policy if you claim misselling as like i say you probably only get a small proportion of it back and then will carry on paying the interest on this for the full term of the loan. You did not know how these policies actually work. They are loans on top of loans really. You have now done the misselling letter which i will look at in a min. If you did stop i note you say that you would stop paying the £65 per month for it but it does not work like that. You took a loan to pay this policy up front so cancelling only brings you a small amount back and you actually carry on paying the interest. I hope you understand this.

marshallka

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?

Looks good to me!!!

woodybuzz

woodybuzz wrote: »

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

Are my sums right? I though the had to treat me "fairly"

marshallka

woodybuzz wrote: »

Are my sums right? I though the had to treat me "fairly"

They do have to treat you fairly here. If you go for the misselling you cancel also but I very much doubt that your repayments will reduce by £65.00 per month. I understand where you are coming from but after all its a loan that you took to pay the PPI so they offer a rebate against it instead and you usually only have your repayments reduce (if anything) by a tiny bit. Even when they sell on a non advised basis they should

Selling on a non-advised basis
A non-advised sale is when no personal recommendation is made to the customer.

---

The customer must, however, still receive sufficient information on the product to enable them to make
an informed decision as to whether it meets their own demands and needs.
Examples of non-advised sales could be where:
• the customer decides or knows the specific product they want – this could be in a similar way to an
‘execution only’ sale of an investment product; or

• the firm offers information on a range of products for the customer to make their own informed decision.

You were not aware of the cost and they certainly should not sell to you on the basis that you cannot cancel or receive a fair rebate against the insurance. Also were you provided with enough information from them at the time of the sale ie. were you told the true cost of the PPI??

woodybuzz

marshallka wrote: »

They do have to treat you fairly here. If you go for the misselling you cancel also but I very much doubt that your repayments will reduce by £65.00 per month. I understand where you are coming from but after all its a loan that you took to pay the PPI so they offer a rebate against it instead and you usually only have your repayments reduce (if anything) by a tiny bit. Even when they sell on a non advised basis they should

Selling on a non-advised basis
A non-advised sale is when no personal recommendation is made to the customer.

---

The customer must, however, still receive sufficient information on the product to enable them to make
an informed decision as to whether it meets their own demands and needs.
Examples of non-advised sales could be where:
• the customer decides or knows the specific product they want – this could be in a similar way to an
‘execution only’ sale of an investment product; or

• the firm offers information on a range of products for the customer to make their own informed decision.

You were not aware of the cost and they certainly should not sell to you on the basis that you cannot cancel or receive a fair rebate against the insurance. Also were you provided with enough information from them at the time of the sale ie. were you told the true cost of the PPI??

Thanks Marshalka

Should I quote the non advised stuff inmy letter, or should I keep my powder dry for later if required?

catinthehat1

I have just heard on the BBC news that the Competition Commission has been looking into PPI and is probably going to propose next week that it is banned when sold along with a loan - I hope I heard it right, children started making lots of noise,(as they do when I ask them to be quiet!!!!)

di3004

catinthehat1 wrote: »

I have just heard on the BBC news that the Competition Commission has been looking into PPI and is probably going to propose next week that it is banned when sold along with a loan - I hope I heard it right, children started making lots of noise,(as they do when I ask them to be quiet!!!!)

Cool, sounds interesting hun, you probably did hear this right because its all we hear now is about PPI complaints, even more so than bank charges now I think.:D
Hey if this was announced on the news it may also be worth keeping an eye on here
www.bbc.co.uk/news
and see what comes up.;)
Thanks hun. x

marshallka

woodybuzz wrote: »

Thanks Marshalka

Should I quote the non advised stuff inmy letter, or should I keep my powder dry for later if required?

You were advised weren't you that this was a non advised sale?? How did you take the insurance out? Was it over the internet and if so did you understand about the full cost of it and were you made fully aware at the time??

Edit just looked back over your posts and it was by secure email. You did sign in the bank didn't you though?? Did they advise anything at the time? I still feel you will be fine claiming on this as when all is said and done it was a single premium PPI and worked out so much more expensive than anything else. When you did this by secure email then sometimes its already ticked for you to untick .. what documents did you receive before taking this out. Were you made aware of the actual FULL cost?? I don't think any of us understood the full cost of these premiums as if we had we would never of had them. We are in debt in the first place and then subjected to more in these premiums. Only 20% actually pay out also I read on a report. They need banning altogether.

As your was taken after January, 2005 most complaints taken to the FOS are upheld for single premiums. Also I would mention about this thing whereby your terms and conditions say you CANNOT cancel as this is utter rubbish. You have a very good case I think.