Nationwide Loan PPI Response

[orfoster]

After sending 4 letters I have had a response from Nationwide for a refund of my PPI.

Dear Mr Orfoster
Thank you for your letter of 3rd May 2007 addressed to Charles Reed. In view of your comments I have been asked to reply on his behalf.

Please accept out apology for not responding to your previous letters but we have no record of receiving them in our Custome Relations Dpartment in St Albans.

Unfortunately we have not been able to trace the call when the application was taken and the Loancare Insurance Policy was discussed. Our calls are not always recorded as this system is in place primarily to assist us for training purposes.

I am disappointed to hear that you felt pressurized into buying the Insurance Cover. As part of the service we provide we like to make customers aware of this product and the valuable protection that it offers. It is however optional and the documentation we sent you did clearly set this out.

We allow full cancellation of the Loancare cover within the first 30 days of the loan being issued at no cost. This information was made avaliable to you in your documentation but you did not exercise this option.

You are able to do a mid term cancellation if you no longer require the policy, this is where we refund the value of the insurance policy for the remainder of the term to you. We would need this request in writing from you, so i enclose a pre-paid envolope.

Customer Relations Manager

Obviously I won't accept this offer. They can't even trace the call therefore I will be persuing the full amount. Anyone got any advice??

[hellhasnofury]

Originally Posted by orfoster

After sending 4 letters I have had a response from Nationwide for a refund of my PPI.



Obviously I won't accept this offer. They can't even trace the call therefore I will be persuing the full amount. Anyone got any advice??

Hello Orfoster,

That was a nice polite letter They obviously know how to treat their customers fairly

They are doing no more than they have to, please read this link
Consumers to benefit from PPI refunds agreement

Personally I would start the ball rolling by writing to them cancelling the ppi and requesting the balance returned to you whether in a cheque or off the balance of the loan, your shout.

Then I would start the ball rolling to reclaim your mis-sold ppi. This is my opinion only.

[orfoster]

Thanks for the reply. Yes I think i'll do that and get what I can now from them and then try and get them for the rest of it.

[orfoster]

6.6.07 Cheque recieved for 70% of the PPI, I have now paid this in and will wait until this clears. They haven't suggested it is in full and final settlement so I will now persue them for the rest.

[hellhasnofury]

Originally Posted by orfoster

6.6.07 Cheque recieved for 70% of the PPI, I have now paid this in and will wait until this clears. They haven't suggested it is in full and final settlement so I will now persue them for the rest.

Hello Excellent proges at last and the best is yet to come

How cool and good for you

[Todge]

orfoster

Great progress so far - very well done.

"Please accept our apology for not responding to your previous letters but we have no record of receiving them in our Customer Relations Department in St Albans."

Two things we can all learn from this:
(1) Always send letters recorded/signed for delivery, and print off the slip from the 'track item' area of www.royalmail.com a couple of days later.
(2) When dealing with the Nationwide, send letters directly to the Customer Relations Manager at the Customer Relations Department in St. Albans. (Name please?)

(NB: They didn't deny getting the letters, though, did they? Weasel words?)

"we have not been able to trace the call when the application was taken"
So do they have full written underwriting notes? If Nationwide want to insist they have been honourable, they need to prove it.

"pressurized"
I know that our financial 'institutions' are now hard-sell, bottom line focussed and Americanised, but at least let the UK based droids have a UK English spell checker. (Forgive me - pet hate ...)

"We allow full cancellation of the Loancare cover within the first 30 days"
No you don't. The law does. And that's the only reason why you offer it.

Again, very well done. Sorry to so 'picky', but there is a war on you know ...

T.

[orfoster]

Hi thanks for your posts. I thought I would wait till the cheque clears before taking this further but i will prepare for it all now. I don't actually what to do next though. I got a cheque for £851.66 but the full balance for the PPI shown on my contract is £1333.95. So do i now look for the £482.29 remaining or do I now try and get the interest also. How do i calculate this?

Its funny that the moment i sent the letter recorded i got a response, do they just throw the others away? I sent the response back 1st class and they answered. I think its funny how they actually haven't got a log of the call where they told me i "must" have this insurance!! Any ideas on where to go from here? Thanks.

Edit: I calulate that for £1333.95 @ 6.7% over 20 months will come to £148.76 interest now totalling that they owe me minus what they've paid me = £631.05 does this sound about right?

[orfoster]

Well the response from Nationwide wasn't very positive, not too sure about the next step;

Thank you for your recent letter.

Our Loancare insurance policy is an optional product offered for members taking out personal loans. Our decision to lend does not depend in anyway on whether insurance cover has been requested or not.

At the time of your application in November 2005 we worked under a "non-advised" process. In accordance with this you would have been given information relating to the product. This included an explanation of the product features, various exclusions as well as the eligibility criteria. We would not have made any reconmmendations to you or made comparaisons with other products.

We provided you with full documentation regarding the insurance cover when we furnished you with the loan documents. At this stage you had not entered into any agreement with us and had the opportunity to read through all the terms and conditions of the policy. On the reverse of the loan agreement you have acknowleged receipt of the policy booklet and by applying your signature have also indicated that you are aware of the eligibility criteria and agreed to the terms and conditions.

At the time you were made fully aware that you had 30 days to decide whether the insurance policy met your needs. You did not contact us during this period to have the insurance removed.

Taking all of the above into account I do not accept that the insurance policy was mis-sold to you.

What do I do now??

[reidnet]

Me thinks maybe time to send them LBA...

I see your in Taunton, I have relations there, near Musgrove Park Hospital, Cant remember the name of the Pub on the corner of the road though, Was a bit Drunk last time I fell out of it ..lol

Ian

[orfoster]

Would that be the Sheppards Rest or the 4DQ Bistro? I think it would probably be the Sheppards Rest on Galmington Road as thats behind the hospital.

Right i'll draft up an LBA now then. The funny thing is one of my friends when taking out a loan just before me sent the form back without ticking the PPI box and they called him up asking him to tick the box as they have created the loan now with PPI. So I didn't want that hassle but I don't think I can mention that in the LBA.

[orfoster]

I have drawn up a LBA, what do you think? I don't know if its abit long. I think it answers to his response quite well.

Thank you for your response.

I don’t feel your outcome on the matter is satisfactory and I must remind you that I am willing to take this matter through the small claims courts.

At the time of my application a friend of mine living at the same address took out a loan for around the same amount as mine and was told to have Payment Insurance when the loan agreement arrived they signed it but didn’t accept the Payment Protection Insurance and sent the agreement back, they were then called up and told they had the loan with PPI and it was now too late to have it changed so they sent the form back to be changed. Therefore I have to disagree that you feel your department don’t pressure people into this policy.

I was told when taking out my loan that if I didn’t have the PPI my loan application would be declined, I have now found that you are in breech of section 8.6 of the Banking Code because of what I was told as you are a signatory to the banking code I feel

I was not told the criteria I had to meet at the time of taking out the loan insurance and without you listening to the call you cannot be certain on any points you have made in your response.

I believe that your company like many other companies push these kinds of products on consumers who are unaware of their rights. Because of the situation that happened above I was aware that I wouldn’t have been able to cancel the PPI within the 30 days as your staff have told me I had to have the unwanted Insurance.

Therefore, I would ask that you reconsider your position on this matter and that you allow me to listen to the call that took place when selling the loan in November 2005 where I am sure it would clear the matter up.

I will give you a further 14 days from the date of delivery of this letter to respond with the payment I am now owed. As mentioned in my previous letter I am already in receipt of £851.66 and am now owed £631.05.
If you fail to respond within the 14 days of my request then I will file a claim through the small claims courts.

Below please find a list of reasons leading me to believe that my Insurance was Mis-Sold to me;

• You cannot make Payment Protection Insurance a condition of obtaining a loan which you did.
• I was told I had to take out the PPI at the time of the loan or not at all.
• I was not told that I could buy the PPI elsewhere at the time of taking the loan out.
• I was led to believe the PPI was compulsory to having the loan and that if I didn’t tick the box I would get a phone call and the paperwork resent for completing.
• Also the terms and conditions of taking out the PPI were not fully explained to me at the time of taking out the loan.

Given the reasons listed above I reinforce my request for payment of the balance owed on the insurance and request a payment of £631.05 to settle this matter.

Failure to respond to this request will result in action through the small claims courts.

If you do have any questions then please don’t hesitate to contact me at the above address.

I look forward to your response.

Yours Faithfully

[reidnet]

HIya,
That looks fine, I would suggest that under your reasons Point 2

" I was told I had to take out the PPI at the time of the loan or not at all , I would remove the Or not at all on this one.

As to the Pub in Taunton, Not sure which one But I know it was within Staggering Distance of Musgrove Road..lol

Good Luck

Ian

[orfoster]

Oh I know which one you mean Rose and Crown its called opposite a petrol station.

Ok I have ammended that letter and will be sending it off tomorrow recorded. I have a feeling the won't roll over just yet. Is there a guide on the court stage for PPI??

[reidnet]

Rose and Crown does seem to sound familuar..lol

If you need help with court stage just give me a shout, I have a claim that is at court stage but GE have added a bit of a twist to the whole claim...

Ian

[orfoster]

I am adding the below into the letter as I realise he mentions it in his letter yet when obtaining a copy of my agreement under CCA they never sent the back.

You mention in your response that on the reverse of the agreement I have acknowledged receipt of the Payment Protection Insurance. When a true copy of my original agreement was requested under the Consumer Credit Act I only received a copy of the front of the agreement therefore you are now in breech of this act as you a relying on evidence that I haven’t seen therefore unenforceable. Please forward this information to me in your response.