tifo v Abbey PPI

[tifo]

Hi,

I took out a loan from Abbey in 1999 which then went into default a few years later and was sold to NCO. The loan had Interest put on as a lump sum of around £1500 at the beginning. The loan was for 5 years.

The loan had a PPI payment of £23 pm.

Is there anything i can claim back from this PPI as i never had the chance to use it, especially after the account was sold? Secondly, the account only lasted 2 years yet they charged 5 years of interest. Can i ask for 3 years back.

It says in the agreement that if i settle early i get a refund of interest minus one month.

[tifo]

anyone?

[alecmac18]

Defo Tifo - there is plenty you can do..

1. Are you 100% sure that the interest was paid up front and it was not an upfront PPI premium that was relabelled interest?

2. Either way - write to the broker or lender who SOLD you the loan and request a full copy of all the info they hold on you. it is likely that they missold you the PPI in the first place. You should definately be able to get a refund of all the PPI premiums you paid with interest. Definately go after the broker and not the final lender.

Was a fact find conducted when you took out PPI? Were you a suitable candidate for PPI? Self-employed, already had cover etc... if that was the situation then you have likely been missold. Go through T&C's carefully of the PPI policy.

- If interest was added upfront then you may still be able to argue misselling - for example - at the time you took the loan out did they offer other loans where the interest was paid monthly and they failed to offer it that option to you. If you ask enough of these type of questions then they will fold and return your money to you.

P.S -Use FOS first and indicate that you may take court action if Fos is unsuccessful on your application form. Rememer using FOS is free and allows you to resolve complaint in court if you are not satisfied with outcome. If you go to court first then you cannot use FOS if the court rules against you.

[tifo]

thanks alecmac,

It was definitely interest upfront, detailed as 'Contra Interest' and i have a copy of the statement from Abbey. The PPI was a monthly payment.

The loan was directly from Abbey so no broker.

I was in a well paid job then so not self employed.

I think i am due the interest back if not the PPI as the account lasted 28 months on a 48 month term, and their agreement clearly states only 2 months interest charge on early settlement, which this was as it was settled with Abbey when they sold it to a debt agency.

Not looking good?

[alecmac18]

Never before have I heard of 'contra interest'. I would clobber them with everything you've got. You have definately got a case for a PPI refund though. Did they assess your demands and needs at the time? Are you in a government job where you are unlikley to be made unemployed? Did you already have PPI elsewhere? Did you employer provide sick pay that overlapped with the PPI cover? Did you feel pressured into taking out PPI cover? Was it (or made to seem through assumptive selling) that taking PPI was necessay to secure the loan?

If yes then you have been missold.

As for the 'contra interest' ?????? Seriously - what is with that. I work in the industry and I have never ever heard of this or seen it. If it smells like a fish.........were you clear as to the terms of the contract when you took the loan out? Was the effect of contra interest on the balance of the loan made clear to you at outset?

If no then missold.

I would say you've got a case worth making.

[tifo]

i assume 'Contra Interest' refers to Contractual Interest.

There are two initial entries.

1. Loan Payout.

2. Contra Interest.

Total payable : 1 + 2, by installment £xx.xx

PPI : £xx.xx per month

Total collected by DD : installment £xx.xx + PPI £xx.xx

[alecmac18]

Well - I pretty sure you can amke a good case for the PPI - beyond that - I don't know.

[tifo]

OK, thanks.

I think i have a good case for the interest back and not the PPI, but i've asked for both so let's see what they say.