Citifinancial Loan PPI claim

fatboydukey · 25th June 2008, 23:38

Hi
Just letting you know I am just doing a claim to Citi Financial.
When I took the loan in 2005 I visited in person and the man selling me the loan basically told me if I didnt take the ppi I wouldnt get the loan - I was desperate!

I have had a letter back saying they will respond fully within 10 working days.

However, I have the original paperwork so to refresh my memory I had a look at what they made me take out.....

Home emergency plan - i.e. your OWN home - I am a council tenant!!
Critical illness cover - I am covered for this with my work!!

There are a few other 'insurances' I could have signed for but it has been noted on this agreement that I declined!

I wish I knew then what I know now I would have taken pleasure in telling that salesman where to go!!!

I hope they write back being difficult because I am READY to fight!!!

old_andrew2007 · 29th June 2008, 00:14

good luck

benjy48 · 2nd July 2008, 13:59

I had the same thing with Welcome when I had to unfortunately extend my current loan with them from 12k to 25k. It had to be a joint loan with my wife, and I must admit it did help in the short term. My gripe though is not only that we had to take out insurances for home and health, but that on closer inspection, that each payment had added INTEREST on it, so boosting up the loan repayments. So now I pay £449 a month. That is not right!!

fatboydukey · 2nd July 2008, 22:39

Well Ive had the reply - they dont feel the insurances were mis-sold, havent upheld the complaint blah blah I can contact the Financing and Leasing Association or the Financial Ombudsman Service if Im not satisfied...
About to write my next letter saying not good enough since they have given me the response I was expecting them to!!
Benjy, I did the same thing thinking about it - I took out another loan before the first one was finished for which they included what was left to pay on the first one! Think I will mention that one aswell!

alanalana · 2nd July 2008, 23:00

hello fbd,

claim everything you can, loans lead to other loans etc see this link and you will see the problems that can occur.......
alanalana PPI claim against RBS (looking for some help) please

A long thread with a multitude of delays still fighting

yours in reclaiming mis-sold PPI

aa

fatboydukey · 12th July 2008, 10:36

Morning

Just received a reply from Citi after I wrote to them again pointing out where I had been mis-sold.

They state that the two policies I signed for wouldnt have protected my monthly loan payments.

They also state that the acceptance of a loan is not influenced by not taking any insurance policy...

Ok these policies may not be payment protection insurance but I still feel I should be able to claim these back as I was told by the sales bloke "if you dont take the policy you wont get the loan"

Anyone got any ideas where I go from here?

Thanks fbd x

fatboydukey · 26th July 2008, 22:46

Hi all

Sent a letter stating - hey ho thanks for pointing out that the policies would be completely useless had I ever tried to claim as they wouldnt cover the payments! Stated that I was bullied into taking them and the Customer Services Advisor I saw on that day said I wouldnt get the loan if I didnt take these out!

Received a reply today - they list why the policies werent misold etc etc, however as a gesture of goodwill are willing to refund the premium of £156.00. I have just noticed whilst writing this that that was the cost of the critical illness cover (I sent some docs as evidence and they stated this cost but not the other one)!

Why did I leave my originals in my desk I cant get the info regarding the other policy until Monday

They also havent included any interest but that is probably because I didnt quote any figures!

Once I get the info from my desk I will write excepting the £156.00 in the form of a cheque as part payment but am requesting the premium from the other policy plus interest aswell.

Once I get the info - if I put some figures on here would somebody point me in the right direction for working out the interest please? Or hopefully there will be a really helpful soul on here who would work them out for me???:o

Also wanted to say when I first took the loan the repayments were £150 a month but then I transfered my debts to a DMP and the reduced payment is now about £56 a month. The APR is astronomical I think its about 47% or something stupid like that - I will check that on Monday also!

I still have outstanding balance on the loan so I guess it would be advisable for them to put in writing what the new balance of the loan would be minus the amount I am claiming for so that I can check that my DMP will be amended as well?!

God is this where it gets confusing?

Thanks all

FBD x

fatboydukey · 26th July 2008, 23:05

Whoops just found the credit agreement :o

It says - £3000 loan
£282 insurance
£3282 Total amount of credit
£100 Arrangement fee
£3382 Total amount borrowed

Interest rate 2.95% month
Annual percentage rate 45.4%

36 payments of £154.11

However I did the DMP starting on 9/11/06 and the payments went down to £56.71. So I have paid so far,

19 months @ £154.11 and,
20 months @ 56.71.

Balance left is about £1737.18 - will email DMP now to confirm what the outstanding balance is at the moment.

Thanks again
FBD x

alanalana · 26th July 2008, 23:22

hello fbd,

Quote:

Sent a letter stating - hey ho thanks for pointing out that the policies would be completely useless had I ever tried to claim as they wouldnt cover the payments! Stated that I was bullied into taking them and the Customer Services Advisor I saw on that day said I wouldnt get the loan if I didnt take these out!

Received a reply today - they list why the policies werent misold etc etc, however as a gesture of goodwill are willing to refund the premium of £156.00. I have just noticed whilst writing this that that was the cost of the critical illness cover (I sent some docs as evidence and they stated this cost but not the other one)!

Why did I leave my originals in my desk I cant get the info regarding the other policy until Monday

They also havent included any interest but that is probably because I didnt quote any figures!

Once I get the info from my desk I will write excepting the £156.00 in the form of a cheque as part payment but am requesting the premium from the other policy plus interest aswell.

Once I get the info - if I put some figures on here would somebody point me in the right direction for working out the interest please? Or hopefully there will be a really helpful soul on here who would work them out for me???

Also wanted to say when I first took the loan the repayments were £150 a month but then I transfered my debts to a DMP and the reduced payment is now about £56 a month. The APR is astronomical I think its about 47% or something stupid like that - I will check that on Monday also!

I still have outstanding balance on the loan so I guess it would be advisable for them to put in writing what the new balance of the loan would be minus the amount I am claiming for so that I can check that my DMP will be amended as well?!

God is this where it gets confusing?

good Luck

aa

fatboydukey · 27th July 2008, 20:13

Ok
Have had a play and have come up with the figures below :o havent got a clue if they are correct but I think its about right!! I used Bog's interest calculator on the sticky!

I have had to play around as some of the payments were to Citi and were the full monthly payment and the other lot is whats left with the DMP....

Roughly the figures are:-

52.78% of the loan was paid by myself and (19 mths)
47.22% of the loan is being paid by my DMP (46 mths)

I have worked out that with the total policy costs were £282.00 so,
52.78% of the total loan is £2912.67 which makes 52.8% of the policies £148.84
so £148.84 divide by 19mths = £7.83 per month (minus interest)
monthly interest = £7.83 divide by hundred x 2.95 = 0.23 + £7.83 = £8.06 (plus interest)
annual interest = 45.4%
19 months = 1.7 yrs so 45.4 x 1.7 = £77.18
£8.06 x 19mths = £153.14 + £77.18 = £230.32 (total amount of policies plus interest charged)

47.22% of the total loan is £2618.64 which makes 47.22% of the policies £133.16
so £133.16 divide by 46mths = £2.89 per month (minus interest)
monthly interest = £2.89 divide by 100 x 2.95 = 0.09 + £2.89 = £3.79 (plus interest)
annual interest = 45.4%
46 mths = 3.10 yrs so 45.4 x 3.10 = £140.74
£3.79 x 46 mths = £174.34 + £140.74 = £315.08 (total amount of policies plus interest charged)

Total claim = £545.40

Although, I think when I write back I need to confirm if monthly and annual interest are still being added to the loan because if it stopped at
3 yrs which was the original length of the loan then I will have to recalculate!

Also since they have made an offer which equates to one of the policies do I add the 8% when I write back? If so do I just add 8% to the total amount?

£545.40 + £43.63 (8%) = £589.03

phew that was hard work lol!!

All comments appreciated!!

FBD x

alanalana · 27th July 2008, 20:32

Hello fbd,

I am ok on Einsteins theory of relativity E=Mc2 but your post 10 will need a proper mathematician to answer

If I were to comment it would be inappropriate as I have already messed up a few numbers in my own claim (Lets hope the bank misses it)

aa

fatboydukey · 27th July 2008, 22:32

Thanks aa - made me chuckle!!

fatboydukey · 31st July 2008, 23:33

Hi all

Just bumping to see if any mods out there are able to check my calcs???!!

Thanks
FBD

fatboydukey · 22nd August 2008, 12:09

Hi all

Received a response the other day - they have offered me about £20 less than what I claimed for but I am accepting as my figures couldve been wrong due to my confusing calcs above lol!! Ive done another working out and I am happy with what they have offered so am sending my letter accepting the offer!!!
I have just moved house and it needs a LOT of work doing to it (single mum with 2 kids) so this money will come in very handy!!!

Woohoo
FBD xx

alanalana · 22nd August 2008, 12:19

Hello fbd,

Congratulations

Enjoy the success. Don't forget to post in ppi successes in the stickies.

aa

fatboydukey · 22nd August 2008, 12:30

Thanks aa

Good luck to you - I am subscribed to your link so will keep track to see how you get on!!

xx

Hallucinogenic_lipstick · 22nd August 2008, 16:58

Hello, my partner got a loan with the same company in 2005, we were told more or less the same about the PPI and that we were mad if we didn't take it, we were also desperate and ended up taking the loan with a 42%APR.

We recently wrote off to citifinace to find out about getting the PPI back as we felt we were mis sold the insurance, we also rceived a letter stating it was n't mis sold and to basically sod off.

So its worth following it up then and how long did it take in total to get a good result?

Dawn.

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