Paintball vs London Mortgage Company

Paintball · 2nd March 2008, 21:54

I currently have a loan with LMC (taken out 15/09/06) which includes a Single Premium amount of £4,326 in PPI added to the total amount owing on the loan. This PPI amount includes interest.

I have no recollection of actually agreeing to the PPI and have requested cancellation and reimbursement. Sterling Insurance who act as the Insurance Broker for LMC have corresponded with me and stated that I am entitled to a partial reimbursement; no actual refund, just a partial amount which is reduced from the total owing on the loan. The letter stated that this includes "incurred expenses" and "incurred risk".

I replied to Sterling requesting a breakdown of their costs to include risk and expenses and received a complaints procedure document

Quel surprise!!!!

I have issued a complaint through the FSA and their reply followed on 22 February informing me that they will provide me with a response as soon as they can.

...

Razz

hellhasnofury · 3rd March 2008, 14:44

Quote:

Originally Posted by Paintball

I currently have a loan with LMC (taken out 15/0/06) which includes a Single Premium amount of £4,326 in PPI which is added to the total amount owing on the loan. This PPI amount includes interest.

I have no recollection of actually agreeing to the PPI and have requested cancellation and reimbursement. Sterling Insurance who act as the Insurance Broker for LMC have corresponded with me and stated that I am entitled to a partial reimbursement; no actual refund, just a partial amount which is reduced from the total owing on the loan. The letter stated that this includes "incurred expenses" and "incurred risk".

I replied to Sterling requesting a breakdown of their costs to include risk and expenses and received a complaints procedure document

Quel surprise!!!!

I have issued a complaint through the FSA and their reply followed on 22 February informing me that they will provide me with a response as soon as they can.

...

Razz

Hello Paintball

Just a quick question, have you referred a complaint through the FSA or the FOS, or both

. With regards to the partial re-imbursement. They are refunding the unpaid ppi and interest into the balance of the loan, therefore reducing it. The part of the ppi and interest you have paid, should be returned to you, with contractual interest.

Paintball · 3rd March 2008, 17:09

Hi Helly..

Through the Financial Ombudsman Service complaints procedure. I understand what they have refunded to the balance of the loan, and am concerned now about the lack of reimbursement for the amount paid plus interest.

I can wait until the FOS makes its decision and gets back to me (hmm hmm, waiting patiently

) or I can procede down the LBA and N1 route as I did with my Capital Bank PPI claim (blatant mis-selling to a student!!)
and claim/argue mis-selling ...

Painty x

hellhasnofury · 3rd March 2008, 19:56

Quote:

Originally Posted by Paintball

Hi Helly..

Through the Financial Ombudsman Service complaints procedure. I understand what they have refunded to the balance of the loan, and am concerned now about the lack of reimbursement for the amount paid plus interest.

I can wait until the FOS makes its decision and gets back to me (hmm hmm, waiting patiently

) or I can procede down the LBA and N1 route as I did with my Capital Bank PPI claim (blatant mis-selling to a student!!)
and claim/argue mis-selling ...

Painty x

Hello Painty

If you have put a complaint to the Fos they will investigate thoroughly, although I do believe they are rather busy, due to the consumer revolt

They do take time, but I also believe that they are upholding 80% of mis-sold ppi complaints.

If you do the court route, this can also that some time, so its your call really.

I wish you good luck in your decision

Keep us posted

Paintball · 3rd March 2008, 23:41

Quote:

Originally Posted by hellhasnofury

Hello Painty

If you have put a complaint to the Fos they will investigate thoroughly, although I do believe they are rather busy, due to the consumer revolt

They do take time, but I also believe that they are upholding 80% of mis-sold ppi complaints.

If you do the court route, this can also that some time, so its your call really.

I wish you good luck in your decision

Keep us posted

Thanks for the support ... I must admit I'm a bit of a 'Claim Whore'!! I usually proceed straight to the N1 route and no messing about, but on this occasion thought I'd give the old FOS a chance to do their bit on my behalf!

However, I'm twitching badly at the mo, partly because I've handed control over to another party and have to wait for their decision and don't have access to every stage of the process and partly a general sense of impatience!!

Paintball · 19th April 2008, 17:12

As part of the FOS investigation process (lengthy!!) LMC have abdicated all responsibility for the selling of the PPI, referring me instead to the broker which was Oryen.

I have already received a partial reimbursement of the PPI which was less than half of the Single Premium sum added to the loan; £2119.74 from a total £4326.00 LMC have offset this amount against my monthly loan payments and have not taken any loan payments since December 2007.

They did not advise me that this was what they were going to do. I received no correspondence from them and only discovered this 'method' when I called them. As I stated to the Customer Services rep, they have done this "without my knowledge or consent" ...

I still have to decide whether I will be going for the full mis-selling of PPI and claiming this from Oryen in which case, I would be claiming the rest of the full amount not reimbursed by LMC.

Any suggestions anyone?

BTW, have almost won my case against HBOS (sued as Capital Bank) for return of mis-sold PPI, Judgment issued last week for full payment.

Paintball · 20th April 2008, 19:33

Bump ...

Paintball · 21st April 2008, 12:58

Bumpety bump ... anyone there?

nicho1120 · 21st April 2008, 23:51

i am in a similar situation to yourself. I wrote to sterling to ask them to cancel the single premium policy that was taken out with my initial loan. they sent me a cheque for 40% of the single premium. I wrote a letter to them to ask how they had arrived at the figure and they sent me a breakdown of what costs were incurred e.t.c. I don't believe that 40 % is a fair amount considering that I will be paying this ppi for the duration of the loan with interest added. I am not sure really what to do now. I have written to the broker that set the loan up and asked for Data Protection Act. I don't believe that i was told that the ppi only covered me for 3 years. Not received the info yet and the 40 days are near. Will get back to you when i have more info

Paintball · 23rd April 2008, 12:30

Nicho, you are a star

Thanks for this response, it's exactly what has happened to me except that the T&C's for the PPI that I finally received after the FOS's intervention state that I'm entitled to 49% reimbursement.

However, I'm still unhappy with this for the reasons you state in your message and don't think it's fair that I'm still paying the premium in my monthly amount which includes interest. What I feel I need to do is work out what the interest is and how much that would add to the amount 'reimbursed'.

Watch this space and I'll be watching yours ...

P x

nicho1120 · 24th April 2008, 01:37

sterling gave me a breakdown on how they had arrived to the 40% figure. I am not sure whether it is worth going to the fos and complaining about the amount received.

Paintball · 24th April 2008, 13:11

I've done that Nicho but they're stalling so my next step is to send a S.A.R - (Subject Access Request) to LMC and then claim the lot back based on mis-selling. I will need to claim it back from the broker, Oryen.

A tad complicated ...

Razz

nicho1120 · 24th April 2008, 21:26

shouldnt you be sending the S.A.R - (Subject Access Request) to your broker then ???

Paintball · 30th September 2008, 16:35

Quote:

Originally Posted by nicho1120

i am in a similar situation to yourself. I wrote to sterling to ask them to cancel the single premium policy that was taken out with my initial loan. they sent me a cheque for 40% of the single premium. I wrote a letter to them to ask how they had arrived at the figure and they sent me a breakdown of what costs were incurred e.t.c. I don't believe that 40 % is a fair amount considering that I will be paying this ppi for the duration of the loan with interest added. I am not sure really what to do now. I have written to the broker that set the loan up and asked for Data Protection Act. I don't believe that i was told that the ppi only covered me for 3 years. Not received the info yet and the 40 days are near. Will get back to you when i have more info

I'm reviving my claim after a period of confusion with it. Noted your comments Nicho which mirror my own circumstances ...

Quote:

Originally Posted by nicho1120

shouldnt you be sending the S.A.R - (Subject Access Request) to your broker then ???

Yes, I should Nicho

I have finally unearthed the original paperwork for the loan.

It was brokered by Magic Loans and I'm sending the S.A.R - (Subject Access Request) today. I refuse to accept the 40% refund, was mis-sold PPI in the first place as Magic Loans did not follow FSA selling guidelines and Banking Code of good practice and did NOT treat me fairly, and I was not told that I would be paying the premium and interest for the duration of the loan once the three year period of the cover was ended. The latter amounts to concealment at the very least and misrepresentation at worst ...

The battle continues

Paintball · 24th October 2008, 17:35

Received today the most arrogant response from Magic Loans regarding my S.A.R - (Subject Access Request).

To quote from the letter: "Our records show that you made a previous complaint about the sale of PPI and a comprehensive reply finding your complaint not to be upheld was issued to you on 25 February by my colleague X. Within this reply, it was clearly stated that you had a period of six months [...] to refer your complaint t

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