Mis sold insurance on loans??? - Page 2

reidnet · 26th August 2006, 23:37

Quote:

Originally Posted by natweststaffmember

reidnet- targets from on high have lead to these cases.

Maybe me thick..No Compredie that Last one NatWest..lol

paulwlton · 28th August 2006, 09:55

I am waiting for a court date concerning bank charges between 1995 to 1998,
to sumarise, an overdraft containing charges was converted into a unsecured loan, the ppi was added to the loan then interest on the loan , i stated at the time i didn't want ppi as i wanted to keep the payments as low as possible, the advisor then went off to see a supervisor, when he came back (did he actually see anyone) he made it clear the only way the loan wouild be approved was to take out ppi.
I am challenging the original loan ammount, in respect of the unlawfull charges , and the ppi that was added to the loan,
the loan was defaulted after 3 payments, £1800 to be insured for three months,
thats a breakdown of £600 per month. (is this legal)
I just hope the judge thinks not.

28th August 2006, 10:03

paul-have a look at the case I referred to previously. To me it is a clear case of misselling because while you said NO they insisted that it is a condition on accepting the loan.

paulwlton · 28th August 2006, 19:45

The conclusion is interesting,
1. Accordingly, we dismiss this appeal on the sole ground that, although the amount paid to discharge the arrears was part of the credit, the amount paid by way of the insurance premium was part of the total charge for credit, not of the credit itself, and therefore the amount of credit was incorrectly stated in the credit agreement and the credit agreement is unenforceable.
sounds good to me.

bp · 29th August 2006, 23:40

Quote:

Originally Posted by paulwlton

The conclusion is interesting,
1. Accordingly, we dismiss this appeal on the sole ground that, although the amount paid to discharge the arrears was part of the credit, the amount paid by way of the insurance premium was part of the total charge for credit, not of the credit itself, and therefore the amount of credit was incorrectly stated in the credit agreement and the credit agreement is unenforceable.
sounds good to me.

Sorry can someone explain the above in sipmle terms for me. trying to get out of a £2271 PPI on a 7000 grand loan and was also told "no PPI, no loan". Finding it very difficult at the mo as most of my tax credit is going towards charges.

groovyglo · 30th August 2006, 02:15

i'M SO GLAD i'VE FOUND THIS THREAD AND WOULD APPRECIATE IT IF YOU PATIENTLY BEAR WITH ME AS I TELL MY STORY.

I am so angry at myself for being so impulsive and not reading my agreement with the loan company. I took out a loan with The Associates now known as citifinancial on 09/07/02 and even though I informed that I had an income replacement policy with Alico, I was advised that I would not be able to take a loan without the insurance being offered as Alico was not accepted. At the time I was so desperate to get the money, I never read the agreement and was just interested in what the monthly repayment was affordable. At the time I thought it was. The type of insurance was never explained to me. These are a record of the events that followed:

loan paid to me £ 1500.00
insurance £ 610.84
arrangement fee £ 75.00
amount financed £ 2185.84

The APR 48.5% 24 MONTHLY PAYMENTS AT £129.41.

At the time the instalment appeared affordable and I was consistent with my payments. I then required another loan in April 2003 and citi financial were only to glad to offer me another loan.
loan paid to me £ 2529.19
refinancing from previous loan £ 1470.81
insurance £ 1946.60
arrangement fee £ 100.00
Total amount financed £ 6046.60

The APR 36.3% 48 monthly payments of £219.07

I still had not realised how much money I was paying out and again took out another loan offered by this company in November 2003. citi-financial advised me that if I kept taking loans and kept up my payment, this would improve my credit rating. I was paid £1352.00, refinance £4648.00, INSURANCE 2341.77, ARRANGEMENT FEE £100 @ AN APR OF 25.9% of 48 monthly payments of £268.36. Again on all occassions I was advised that I had to take insurance in order to get the loan. In order to try and pay off the loan quicker I began paying £300 a month.
WAKE UP CALL
I contacted citi financial this year for a settlement figure and was advised it was approx £6000.00. Shocked I was, so arranged a meeting with branch manager as I could not understand why I was still\owing so much. He informed that I had only paid £8000.00 since the account was opened. I explained how I was forced in to buyoing the insurance. He advised I write to the Complaints department, which I have done and was also requested to pay £30 for my statements I was sent a page of transactions for 2005/2006 and charges that did not make sense. I then requested copies of my agreement as I was shocked and could not beleive I agreed to pay so much insurance. I also sent a data protection letter request in June and only received the agreements. I am now self employed since 2004, and ofcourse dicovered this site. I have stopped my payments as I have requested the insurance be deducted. They have advised me that they will be passing the case on to debt collectors. anyone can you help with some advice pleeeese!

30th August 2006, 07:32

My advice to anyone is:
1) do not stop paying a loan that you have taken out even with PPI, simply cancel the PPI
2) look at Bookworms thread on Insurance who suggests a company that can cover you for less
3) PPI is only really useful if you have assets, ie if you are single, no house, or kids then no insurance. If you do have assets then have some insurance that will cover you if the worst case scenario happens.

paulwlton · 30th August 2006, 09:06

I've been picking the bones from the judgement and still getting different conclusions, i think we need someone who can summarise this and put it in laymans terms.
I think a mod should take a good look.

5 Items excluded from total charge for credit
(1) The amounts of the following items are not included in the total charge for credit in relation to an agreement
……
(c) any charge relating to an agreement which is an agreement to finance a transaction of a description referred to in paragraph (a) or (b) of section 11(1) of the Act, being a charge which would be payable if the transaction were for cash;
……
(j) a premium under a contract of insurance the making or maintenance of which is not required by the creditor as a condition of the making of the agreemt

paulwlton · 30th August 2006, 11:58

I have just looked at a copy of my credit agreement it doesn't have a signature on it, the space is blank where it should have been signed, could i have signed something else?, i'm a bit puzzled, can't remember if i signed any other document. This is the only document i have.

groovyglo · 30th August 2006, 19:59

paulwlton, you should write to the customr services requesting a copy of your original agreement, that might have your signature on it. I was sent all the copies of my agreements and all my signatures were right there glaring at me. I'm only having problems getting my statement of all the money I've paid over the years. Good luck. I've just written a letter to citi-financial using the template from Willob requesting my insurance be cancelled with immediate effect and refund on premiums paid. Fingers crossed!

matd · 30th August 2006, 21:01

If one cancels PPI on a loan, can you get a refund of your premium if you weren't coerced into taking it? Do you have to prove that you were missold first?

bp · 30th August 2006, 21:27

Well i called the Financial Ombudsman today, explained my situation and as far as they are concerned, i have grounds to complain. Contacted Abbey who told me i had get another loan in order to cancel the PPI I pointed out how irresponsible they were in suggesting this since i had just told them i was in great financial difficulty. The woman was very embarrassed. I'm waiting for phone call from their manager and will write my complaints letter in a couple of days time.

The worst part is that i don't actually need it since my work would pay me for a year if i was to fall ill and so would my Union.

bp · 8th September 2006, 16:09

If anyone can advise I'd appreciate it.

Been contacted by my bank concerning my complaint on PPI, I think I've shot myself in the foot.

I do remember asking if i had to have the PPI and being told yes! Just not too sure when this was said to me.

Today, Abbey played me back the tape of my loan application. This is how the conversation goes at the PPI stage.
Abbey: "Now miss**** we do recommend payment protection,(and she goes on the explain its benefits"

Me: Right.

Abbey: "Your loan has been approved at*** per month and this is at a rate of **" we'll send you all the paperwork for you to read carefully and then sign. You have to sign box * and * of the payment protection otherwise it will delay your application".

After having applied in Jan and received the paperwork and sent them back, i was contacted by Abbey a few days later and told that i hadn't signed the PPI box and that's why there was a delay in my receiving the money so could i sign and return the paperwork asap.

Problem is i do know i was told i had to have the PPI I'm just not sure if it was during the 2nd phone which was not recorded or would a bank go as far as omitting a bit of the conversation. I mean at no point on that tape does Abbey directly ask me if i want PPI it just goes from recommendation to stating the payment amount per month nor am i told the difference between the loan with and without PPI. Its just weird.

Any advice? Should i just give up? They have said in order for me to get rid, i have to reapply adding an extra grand to the loan!

reidnet · 8th September 2006, 23:30

Good News...

Lloyds TSB as a gesture of goodwill..lol Have agreed to refund my PPI policy amount plus interest.

they did make me a lower offer first, I told em to shove it..then faxed LBA to them..within ! hour they were on the phone and settled in full..

groovyglo · 11th September 2006, 20:42

congratulations on the goodwill gesture from Lloyds bank. I received a reply fom citi-financial about my complaint basically informing that I signed a needs analysis form agreeing that the policies would be beneficial. however I signed the form but never read it or filled in because it states that I am not a smoker which I am and that I've never had any broken bones which I have. So there is no way I would have given misleading information on the policy. They conclude the letter by informing that there is no evidence to support my claim that insurance was mis-sold to me. They also state that the charge of £30 for a one year statement is justifiable.

They go on to say that my account is in arrears and have transferred it to the central office and credit management department and have updated my credit file. They suggest that if I feel that the outcome is unacceptable I should refer to the complaints Investigation Team. I'm not sure what do next, I still have not received the forms to cancel the ppi.

Shadey1 · 12th September 2006, 00:03

Does this also apply to PPI on credit cards?

I have a card with MBNA and tried to cancel it 3 years ago as the amount each month was huge. When i called them they told me I was not allowed to cancel it on a balance as large as £5k. Not knowing any better I took there word for it.

I had since cleared the card and recently did a balance transfer,only to find they put the PPI back on. I called them again and they said I had checked the box on my initial application in 2001(!). I told them to cancel it and they gave me some crap about their right to a 30 day cool off period hence I wil suffer one more months premium.

I am so angry 1. because this screws up the savings i have made on the balance transfer, and 2. I keep thinking about the monthly premium they said I could not cancel - 3 years at approx £70 per mth, Imagine the compound interest on that - no wonder it felt like I was never paying anything off. These companies are sooooo wrong!

edinburghbeerbucket · 16th September 2006, 08:06

Hi folks,

New to this section!

I have what seems like a very weird situation! I took out a loan with Alliance & Leicester some time ago (June 05 I think) and at the time signed up for PPI.

When I called them in May this year to tell them about my change of address, I said "oh and I don't think I need the PPI now either". The guy on the end of the phone said "no problem, sir.. we will have to open a new account without the PPI included, but all it requires is one signature from you".

They posted out the new loan, with no PPI, I signed and returned it, job done!

Having looked at it now, it looks like they gave me a pro-rata refund on the PPI, which seems *almost* fair as I don't think I was pressurised into buying it or anything.

Anyone else had this experience?!

17th September 2006, 10:17

Good News Folks! Ppi Refund Success

Wxx

BaldyBaldwin · 17th September 2006, 10:35

am watching all this with interest, have recently started the ball rolling with hbos over 2 loans i had taken out with them in 2003, i sent them a Data Protection Act request as i know that they levied some charges on the account when i fell behind with payments after suffering an accident.

when the Data Protection Act information arrived i noticed that a sum( a very large sum) had been the loan amount, i was very suprised as i had never been told that insurance was to be added or was needed or even what it was for!

have just wrote to HBOS to ask what this was insurance was for and intimating that i will be seeking a refund, although i have no idea were stand with this, and have recieved a standard blah, blah, blah letter saying i will get an answer in 30 days.

will keep you informed

edinburghbeerbucket · 17th September 2006, 19:25

Quote:

Originally Posted by kevinlufflum

they levied some charges on the account when i fell behind with payments after suffering an accident.

Hey Kevinlufflum,

Might be worth checking out if the insurance would have covered your repayments (and possibly other repayments too!) when you had your accident? I'd do that before you try and get a refund on it! I'm fairly sure these claims can be back-dated, but there must be a time limit on it. Anyway, check it out!

Adam.

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