Mis sold insurance on loans???

Hi there,

Does anyone know how to go about claiming insurance back. There is alot of fuss being made at the moment about these PPIs....see article....
'Worthless' insurance costs £5bn | This is Money

And I've read a thread in MSE that someone has just claimed back £2,000 because he stated that he was mis sold the policy, the terms and conditions were not explained to him properly (needs to be by law??) and therefore they had to give it back to him......but I couldn't find a letter template etc.

Has anyone done it here or link a thread to me? Sorry if this has been brought up a million times, I really have looked and couldn't find anything.

If the forum members here don't know about this and it's possible to actually do this, then there'll be a lot of letters being sent out next week I'm sure!!!

WillowXXX

Well, I've just read quite a few threads with people trying to get back the insurance paid on loans/ccs....

It's all very confusing......I think that there are alot of people on this site who could benefit from step by step instructions as to how to get this money back.

I've heard of one company (there may be more) who claim this money back for you but take a HUGE percentage when they do.

Can we not do this ourselves? But how?

I'm gonna write to Abbey, we've had a loan out with them for 6 years ish, which was defaulted about 4 years ago. We've still been paying them £90 a month as a payment plan was put in place. But I just can't help but wonder, how much of that loan is insurance, insurance that we obviously won't be using?

We need to get on this peeps, don't ya think???....sort out a proper structure for action and work out who can claim etc....If there are companies claiming that they can do it for a profit then surely we can do it for the money that's ours anyway???

[Sem]

Im in the same boat

they have taken £1080

The thing is that they lump the insurance at the front of the loan, so you're essentially paying that off first. If, like ourselves, they defaulted us after a year or so then shouldn't we have only paid for a year's worth of insurance? and not the whole lot?

I'm still pondering writing to the Abbey but I need someone who knows about this stuff to tell us what we can and can't do.

[andrew1]

I have just been enquiring about this with a BOS insurance as I heard from one of the threads that, and I'm not too sure of the legitimacy yet so don't get too excited, if the loan insurance came before the interest then the loan becomes unenforceable

Now someone here in BAG has suggested they had heard of a case going through the courts which was lost by the bank purely on this point. So get searching people because I am miffed about a £6k insurance on a 13k loan only to find out bos probably only paid a fifth of that to St Andrews for the policy
BOS Loan insurance


I will be digging and posting back but keep an eye on my thread too and I'll watch this one!

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

I got this template from Robert Harper 2000 ( a member of this site)...thank you!, the sample letter is as follows:

Complaints department
Bank's name & address

Re: account 999999999999999999999


COMPLAINT

Dear Sir or Madam,

I took out the above loan for £x,000 on dd/mm/yy. When I took it out, I signed up for Payment Protection Insurance. I phoned up on dd/mm/yy to ask to cancel it and was told that this is impossible. I am writing to complain.

Put in any of the following which apply:

[When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do. I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I am self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick. My situation was known to the person who sold me the loan, however he/she did not point out that the insurance was virtually useless to me so I think that I have been mis-sold the insurance.]

[When I took out the loan, I said I did not need the PPI as my employer provides generous illness and redundancy benefits, but I was told I should still take it out. As this is not correct, I consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I wish to cancel the PPI because since taking out the loan, my employment situation has changed. I am now self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick.]

[I wish to cancel the PPI because I now have sufficient alternative insurance cover from my employer and other sources.]

[I wish to cancel the PPI because I am in financial difficulties and cannot afford it. I enclose a Statement of Affairs which shows this.]

I have been advised that I should be able to cancel the PPI contract at any time and receive a partial refund of the premium that I have paid. I would like to do this. [And in view of the way I was mis-sold the insurance, I would like to ask for a full refund of the whole premium.]

I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service.

Yours faithfully,


nb There is no reason why you have to be able to prove that you cant afford the PPI before you cancel it, so in theory you should not need to send an SOA. However, I think it helps because it puts the bank morally in an even worse position if their PPI is causing you hardship.

How to compalin to the Financial Ombudsman Service is explained in detail here: http://www.financial-ombudsman.org.u...complai nts.htm.

so what do you think?

Wx

	The Financial Ombudsman Service For the most part, don't bother. The Ombudsman is an industry arranged service which is under-resourced, takes too long, lacks clear transparency. You have no idea what evidence the FOS has received from the bank or how your complain has really been handled. The FOS is the preferred complaints route for the banking industry. The county court is to be preferred by consumers for its speed, openness, the quality of its awards and also because it will award 8% interest on top of any damages won by you. The Ombudsman should normally be used to solving little technical difficulties or customer service problems which you have expereinced with your bank.

	What are your rights at work Follow this link to read the review of the Guide to your Rights at work, published by Lawpack

	Hardship By and large the "harship" provision in the FSA waiver is a myth which is intended to create a sense that the banking industry is sufficiently well-intentioned to act fairly towards its customers even though their right of access to the courts has been blocked. In fact there are very few guidelines as to procedure and very little definition of "hardship". One unfortunate spin off is that many people in difficulty get their hopes up and go to considerable lengths to plead hardship to their bank in order to get a refund or partial refund of their bank charges only to be refused. Neither the courts nor the FOS have the power to order a bank to make a charges refund on the basis of hardship. We hear of some people obtaining a partial refund quite easily. Others have obtained money by being very persistent - but mostly we hear that people are refused. Even benefits claimants do not automatically receive hardship refunds. By all means try to get a bank charges refund on the basis of hardship - but don't bank on it!

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[reidnet]

I used that template letter to Lloyds TSB regarding the insurance.
I telephoned first and was told no way would I get refund on PPI insurnace,
They suggested that I cleared the loan by taking out another loand without PPI to cover the outstanding amount. mmmm I said No Ta, I want a refund..was told NO Way..

Sent letter off to Lloyds on Tuesday giving the 14 days to refund..

Will let you know what happens

Ian

[callumsgran]

Good luck Ian

WOW.....gosh that's great! let us know how you get on....good luck!

Wx

[andrew1]

Can a policy which cost a fortune which has had a claim against it paid out for a year still be classed as ' mis sold'? I'm running a thread BOS Loan insurance at present whilst investigating similar situation, but I feel a bit awkward stating the policy might have been mis sold when I actually had a claim paid out.

I still feel the original sale was mis sold. Be interested in anyones take on that point .

[thewifeandI]

I would think that makes it difficult / impossible, as you have benefitted from it. If you ask for your premiums back I would expect them to ask for the payouts back with costs.

[andrew1]

It wouldn't be the premiums Jeep, I paid nearly £6000 insurance on a 13,000 + £6000 interest loan over 5 yrs and have been told by a helpful BOS ex worker that it would have cost them one fifth of that to buy from St Andrews Insurance. I am a businessman myself and understand the word profit, but I had this insurance foisted upon me at a time when common sense wasn't common and panic ruled the day when I needed a loan. In effect, if you forget the claim for one minute, the insurance was mis sold in that it was (almost) forced upon me - (yeah yeah I had a choice etc) but it has become apparent that there were ' guidlines' given to staff at that time regarding the divulgance of information/rights at the time the loan was taken out. That's the bit which has been misleading. I also trusted them as ' fiduceries' as they saying goes. They are the Bank of Scotland after all - not joe bloggs financial services ex con Ltd

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[reidnet]

Thanks for the good luck message cillitbanger..

But the pink sheep in wellies...you dont know what that does to an Ex Aberdonian..lol

I havnt had any reply yet from TSB regarding PPI letter..will keep you posted though.

I have another one with First Plus..Cost £3388 they said I could cancel it and they would give me refund of £97.41 ..Think he understood what go forth and multiply meant..

The first Plus one Im contacting the FSA for advice on this one as have found the policy and documents to be very misleading.

Ian

[reidnet]

Just had reply from Lloyds re the PPI insurance..

"I was most concerned to read your letter, thank you for writing to us..
As your concerns relate to issues outside the control of this office, I have passed your letter onto Lloyds TSB General Insurance Department. It may take a while to gather all the facts together, but they will try to come back to you with a full response within the next few working days.

Copy of my letter below..meant to post earlier but forgot..lol

Mr Ian Reid August 21, 2006
xxxxxxxxxxx
xxxxxxxx
xxxxxx
xxxxxx
Tel.
Email: xxxxxxxxxxxxxxx


Complaints department
Personal Loans Service Centre
Lloyds TSB
PO Box 43
Peterlee
County Durham
SR8 2YQ

Re: account xxxxxxxxxx

COMPLAINT & Request for return of PPI Insurance & Interest.

Dear Sir or Madam,

I took out the above loan for £1500 on 12/012005. When I took it out, I signed up for Payment Protection Insurance. I telephoned today to cancel the PPI insurance and was told that this was not possible.


When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do. I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not really want.

Since this loan was taken out to refinance a high TSB overdraft that had risen mainly due to unlawful penalty bank charges (a separate complaint currently ongoing) I feel that in a time of being financially vulnerable I was pressured into taking the loan protection.

Having done some research I have found the same cover is available for £3.95 per £100 of cover compared to Lloyds Cover of over £22 per £100 of cover.

The cost of the Policy was £415.42 plus £199.05 Interest making £614.47
The same cover from another insurer would cost a total of £118.50 thus saving £495.97

I request a refund of the policy fee plus any interest paid on the fee.




I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service, and if need be make a claim via the small claims court to recover the PPI insurance fee + Interest + costs.

Yours faithfully,


Ian Reid


Well sit back and see what Happens Now

	The Financial Ombudsman Service For the most part, don't bother. The Ombudsman is an industry arranged service which is under-resourced, takes too long, lacks clear transparency. You have no idea what evidence the FOS has received from the bank or how your complain has really been handled. The FOS is the preferred complaints route for the banking industry. The county court is to be preferred by consumers for its speed, openness, the quality of its awards and also because it will award 8% interest on top of any damages won by you. The Ombudsman should normally be used to solving little technical difficulties or customer service problems which you have expereinced with your bank.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[reidnet]

Had a chat with the FSA this afternoon...

Might be a problem with claiming some of these policies, The FSA only started regulating this type of Insurance from 14th Jan 2005

Though the discussion I had with him regarding very Misleading terms in the policy etc, he was interested in and asked for the info to be sent to him to follow up..

Have to wait and see what they come back with.

fantastic! keep us posted.....exciting stuff!

Wx

[TAY]

We have taken out insurance on a loan and have found it cheaper and better value else where due to financial dificulties we asked to cancel the insurance and was told this was not possible although it would be in our interest. I thought the insurance was by choice and if you did not want it then it was up to you to finance payments in respect of unemployment etc? Because we were happy to change it as long as we could prove we had cover then this should be enough? The problem is the banks make so much profit in this, it is like buildings/ contents insurance etc.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

	Household Insurance Click link to open in new window.

reidnet-there maybe a legal precedent already in the domain re insurance on loans where no option of not taking it is concerned I come back in a mo with a link
http://www.consumeractiongroup.co.uk...e-details.html
Here is the link. If you read the full judgement in the case mentioned. It is a long one, the case may be valid where the loan was sold with insurance and no other option of not taking it out was given

[reidnet]

Thanks NatWest.. yer a gem..

I will have a look at that link, May be able to use info from it..Thanks

Ive got 2 that im looking into, One with Firstplus (Lloyds backed Insurance though) where there is some very very small print not in the actual policy or original document. Hidden away in a welcome to firstplus there is a clause in there.. It states the clause and then says to refer to the Insurance Policy. There is nothing at all about this clause in the policy.

I discussed this one with the FSA on Friday..and they agree that it a misleading if not deceitful clause. I have written to them (posted today) asking for a refund of the policy fee + Interest, stating that the policy was misold as this clause was not initially pointed out at time of sale etc.
The FSA have taken details of this particular one and are checking it out, they have also asked me to keep them informed of what response I get.

Could do with the £4000+ back on this one..

Just see what they say in their reply..oh have given them 14 Days and then Court..lol



Ian

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

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