POC for PPI - Do we have any?

[johans]

Originally Posted by karinata

Hi there I use this for my PPI claim....hope it can be of help to someone else, you may need to adapt bits.....

The Claimants took out a secured loan on xx/xx/xxxx via a telephone call to the Defendant.
Claimants were told that the PPI was absolutely necessary in order to proceed to obtain the associated credit.
The policy was not defined nor explained and not considered "optional".
At the time of undertaking the secured loan, the Claimants were misled into procuring Payment Protection Insurance as part of the overall credit.
This is in breach of CCCA 1974, where a company must be fit to be involved in activities the licence covers.
The policy was not needed or requested as Mr X's employers operate a policy of full pay for 12 months of sickness,death in service benefits, and in addition to this there was critical illness cover and life insurance already in place.
PPI only applied to 5 years rather than full term. This is also in breach of Unfair Terms in Consumer Contract Regulations 1999, where a term is unfair if “contrary to the requirement of good faith if it causes a significant imbalance in parties rights and obligations under the contract, to the detriment of consumers”.
There was over-reliance on information sent through the post, which again breaches CCA 1974 and is therefore negligent in line with 1967 Misrepresentation Act.
Under CPR18 claimant requests full documentary evidence of absolute compliance with best practise in sale of PPI and detailed record of training undertaken by staff.
The Claimant further contends that if the Insurance was applied correctly, that the Agreement was not executed in accordance with the Consumer Credit Act 1974;
i) As the Insurance was in fact a charge for credit on the Conditional Sale Agreement, it could not also be part of the credit on the additional insurances agreement as under section 9 (4) CCA credit charges cannot be treated as credit even where time is given for their payments
ii) If the Insurance was not a charge for credit in respect of the Conditional Sale Agreement, as it was compulsory, it was a charge for credit on the additional insurances and under section 9 (4) CCA credit charges cannot be treated as credit
iii) For the reasons stated in either (i) or (ii) above, the agreement for additional insurances failed to state the correct amount of credit and did not comply with paragraph 2, schedule 6, which requires that regulated agreements contain as a prescribed term stating the correct amount of credit
iv) The agreement for additional insurances was therefore improperly executed under section 61 (1)(a) of the CCA.
The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year, from XX/XX/XXXX to XX/XX/XXXX of £XXXX.XX and also interest at the same rate up to the date of judgment or earlier payment at a daily rate of £X.XX

thanks karinata!

[UK26]

any update?

[pinknico]

"The Claimant further contends that if the Insurance was applied correctly, that the Agreement was not executed in accordance with the Consumer Credit Act 1974;
i) As the Insurance was in fact a charge for credit on the Conditional Sale Agreement, it could not also be part of the credit on the additional insurances agreement as under section 9 (4) CCA credit charges cannot be treated as credit even where time is given for their payments
ii) If the Insurance was not a charge for credit in respect of the Conditional Sale Agreement, as it was compulsory, it was a charge for credit on the additional insurances and under section 9 (4) CCA credit charges cannot be treated as credit
iii) For the reasons stated in either (i) or (ii) above, the agreement for additional insurances failed to state the correct amount of credit and did not comply with paragraph 2, schedule 6, which requires that regulated agreements contain as a prescribed term stating the correct amount of credit
iv) The agreement for additional insurances was therefore improperly executed under section 61 (1)(a) of the CCA."QUOTE


Would someone very clever mind explaining the above in simple english as I am sure I will need this POC shortly! Thanks

[hellhasnofury]

Originally Posted by pinknico

"The Claimant further contends that if the Insurance was applied correctly, that the Agreement was not executed in accordance with the Consumer Credit Act 1974;
i) As the Insurance was in fact a charge for credit on the Conditional Sale Agreement, it could not also be part of the credit on the additional insurances agreement as under section 9 (4) CCA credit charges cannot be treated as credit even where time is given for their payments
ii) If the Insurance was not a charge for credit in respect of the Conditional Sale Agreement, as it was compulsory, it was a charge for credit on the additional insurances and under section 9 (4) CCA credit charges cannot be treated as credit
iii) For the reasons stated in either (i) or (ii) above, the agreement for additional insurances failed to state the correct amount of credit and did not comply with paragraph 2, schedule 6, which requires that regulated agreements contain as a prescribed term stating the correct amount of credit
iv) The agreement for additional insurances was therefore improperly executed under section 61 (1)(a) of the CCA."QUOTE


Would someone very clever mind explaining the above in simple english as I am sure I will need this POC shortly! Thanks

Hello Basically it means that the agreement that state the ppi is as such

You loan say £20,000 over Ten years.

PPi costs £4.800

The then add them together and charge interest on the both over ten years at their interest rate.

So you find that they added £4,095 in interest alone for the ppi. So infact the ppi cost you over £9,000 for the privilige.
There is lots of useful information relating as to what is require to make an agreement properly excuted and enforceable under the cca.

Have a look at the thread agreement enforcebility from page five onwards

[pinknico]

Originally Posted by hellhasnofury

Hello Basically it means that the agreement that state the ppi is as such

You loan say £20,000 over Ten years.

PPi costs £4.800

The then add them together and charge interest on the both over ten years at their interest rate.

So you find that they added £4,095 in interest alone for the ppi. So infact the ppi cost you over £9,000 for the privilige.
There is lots of useful information relating as to what is require to make an agreement properly excuted and enforceable under the cca.

Have a look at the thread agreement enforcebility from page five onwards

Thanks for that,both my secured loans were set out like that.

[pinknico]

Can you point me in the direction of that thread about agreement enforceability please?

[alanalana]

Hello pinknico,,

Please see this link from the debt collection forum stickies section

Is My Agreement Enforceable - Useful

aa

[pinknico]

Originally Posted by alanalana

Hello pinknico,,

Please see this link from the debt collection forum stickies section

Is My Agreement Enforceable - Useful

aa

Thanks aa .

[hellhasnofury]

Originally Posted by pinknico

Can you point me in the direction of that thread about agreement enforceability please?

Hello pinknico,

Hey AA you are getting quicker

This is the thread I was referring to regarding info on the enforcebility of credit agreement. I will have to read the one AA posted up

Read from page 5 onwards for the info relating to ppi on agreements

Agreement Enforceability

See if this helps your understanding

[pinknico]

Originally Posted by hellhasnofury

Hello pinknico,

Hey AA you are getting quicker

This is the thread I was referring to regarding info on the enforcebility of credit agreement. I will have to read the one AA posted up

Read from page 5 onwards for the info relating to ppi on agreements

Agreement Enforceability

See if this helps your understanding

Thanks HHNF that is the one I am after!