jster v welcome ppi

[jster$$$]

i need a little help. i am just about to send letter to welcome asking for ppi back as it was missold. my question is the APR on my agreement is 41.6% and i want to add contractual/ compound interest and i'm not sure how to do this. i have looked at various spreadsheets and i have no idea how to calculate the interest on each payment i made. i want to understand it fully. are there any wizz kids out there that can help me????


many thanks in advance

[Todge]

Hi, jster$$$

Look for the Heading "Interest rate" in the Spreadsheet tab "8% Interest" and change it to 41.6. (Cell I3, I think?).

Good luck - get back if you need any more help.

T.

[jster$$$]

thanks todge, i will give that a whirl

[jster$$$]

well i've tried changing the formula and i've had no joy. i give up. i think i will just send letter asking for repayment of ppi.

[itsmeandonlyme]

Hello J- our other WF fighter...
The spreadsheet is very easy ..which one r u using?

Which stage r u on? Have you received your statements or account breakdown with all the payments?

Do not rush with the letters..


tell us what you have done( Subject Access Request? CCA?)


Regards,


Itsme

[jster$$$]

hi itsme,

i'm so glad you've come along. i could do with some help.

will try to make this as brief as i can!!!

purchased car in 2002 was told i had to have insurance said i didn't want it, was told i couldn't have the car then so agreed to have it. (same old story)
paid for about 3 years (4 year term) stopped paying as had some difficulties. managed to fob them off for about a year. then we discussed a new arrangment for me to pay £70 per month for two years (originally was £19 and they would write off the remainder (approx £1400).

i phoned them last week and asked them for a copy of my contract and a breakdown of payments, which i received on monday. so i never actually sent Subject Access Request or cca but received what i needed with the phone call. (also on my breakdown of payments there were fees of £20 and £5 totalling £155 which i knew nothing about)

my next step was the send them the following letter which i found whilst looking through many posts on here

xxxxxxx
xxxxxxx
xxxxxxx
xxxxxxx

Complaints Department
Welcome Financial Services
Mere Way
Ruddington Fields
BusinessPark
Ruddington
Nottingham
NG11 6NZ


19th June 2007

Dear Sir or Madam,

Re: Complaint and request for return of Payment Protection Insurance premium and contractual interest.

Customer Number: xxxxxx

On the 21st March 2002 I took out a car loan from Associates which was later sold to you in or around January 2003. The loan on the car was initially for £3060. This amount was to be paid over 48 months at £119.85 per month, totaling £5752.80.

When I took it out, I signed up for Payment Protection Insurance [PPI]. At the time I was experiencing some short term financial difficulties and I told the sales rep I did not require the insurance to which I was told that I could not have the car loan unless I agreed to take the insurance.

No claim was ever made under the policy.

I now realize following the recent OFT and FSA investigations, that you mis-sold me this insurance policy, which I did not want and did not need. I believe I signed up for the insurance under economic duress and that your actions were unconscionable.

I am writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

Your responsibilities

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

I am frankly shocked that you have operated my loan account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

No attempt was made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed if I really needed it at all. No inquiry was made as whether I had preexisting insurance for accident, illness or unemployment. I was not given a copy of the insurance policy nor were any rights to cancel explained. I believe you manifestly failed in your fiduciary responsibilities, your duty of care.

Finally I believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth.” Inter alia, I believe that you should have disclosed to me that the type of policy you sold me, a single payment premium, did not give a pro-rata refund in event of early settlement. I believe you should have made it clear to me that the policy generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

What I require

Your concealment of the act of mis-selling has prevented me from asserting my right until now. I believe that there are strong grounds for action against you under common law, statute and consumer regulations.

The original premium for the insurance was £2019.00 plus interest of £1776.84 totaling £3795.84 this was to be paid over 48 months at 79.08 per month.

The loan plus the interest equals £9548.64 I have paid to date a total of £7754.69 this leaves a balance of £1793.95

I require a refund of £2001.89 plus contractual interest of 41.6% and a nil balance owing to you.

Alternatively I will ask the Court to allow me statutory interest at 8% under S69 of the Count Court Act.

My targets to resolve this matter

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

Yours faithfully,





xxxxxxxx

now i am stuck with the spreadsheet i have looked at a few and i have no idea what i'm doing. i don't know how to change the % rate, also do i put each monthly amount and calculate the % from that date. as i have been put on a payment plan i don't know how much is coming off insurance and how much i coming off the car finance.

i have successfully claimed back bank and credit card charges and thought i had a good knowledge of what i was doing but the whole ppi thing is much more complicated.

any help would be much appreciated

J

[jster$$$]

could someone advise me?

should i send the above letter? do i have to include a spreadsheet? if i do would someone be able to help me work out how to amend it to my claim?

many thanks

[mcfadwmc]

i've just sent my letter off asking for money back. The way i calculated interest was to work out how much PPI was as a percentage of loan then use this to calculate a rebate due on each payment of interest shown on the statement that welcome send out

simple example

you borrow £7000
PPI £3000
total £10000

so PPi is 30% of total borrowed

then on each payment you'll see how much is knocked of balance on your statement.

eg. your payments are £1000 per month but it only shows as knocking £400 off your balance so that means you pay £600 in interest.

£600 times 30% is £180 so you add £180 per month to original sum of £3000 and you have the amount to claim back

hope this helps

[itsmeandonlyme]

Hello J,
what i need is
amount of payments( how many months the loan is for)
APR
monthly payment
PPI amount
Loan amount

regards,


Itsme

[grumpy001]

No, the PPi premium is almost 43% of net advance

[jster$$$]

thank you so much. i will try and make it understandable!!!

overall i had to pay 198.93 for 48 months. this consists of loan and ppi.

3060= loan
46.2%= APR
119.85 for 48 months

PPI

915 = 24 months warranty cover
150 = GAP
954 = option to purchase fee
1176.84 = interest (total charge for credit)
41.6% = APR

79.08 to be paid over 48 months.

i will try and scan agreement to you it may make more sense

[jster$$$]

itsme i cannot post agreement. not sure how to do it!
i could email it to you if you didn't mind.

many thanks again
J

[itsmeandonlyme]

will work it out by the end of the day) you should use photobucket Image hosting, free photo sharing & video sharing at Photobucket and upload you pic there, and insert link on this thread...

[itsmeandonlyme]

one more question what r u claiming as mis-sold..is it PPI..or all other warranty-insurance covers???

and when was the first payment made??? also have you paid for any of the charges/fees...dd???

(same old story)
paid for about 3 years (4 year term) stopped paying as had some difficulties. managed to fob them off for about a year. then we discussed a new arrangment for me to pay £70 per month for two years (originally was £19 and they would write off the remainder (approx £1400).

I also would need to know those month that you didn't pay and how long you were paying £70 for....

I need to know what you paid and what you have not..and charges on the account!!

[jster$$$]

wow itsme you certainly know what you are doing .

right here goes

first payment was made on 07/05/02 and then monthly around the same date until 07/02/05 (i did miss one payment which was agreed by welcome in july 03)making a total of 33 payments. all these payments were for £198.93. £79.08 of that was for insurances the rest was for car loan. then i never paid anything until 05/01/06. since then i have paid £70 per month for the last 17 months.

according to the breakdown of payments they have charged me for bounced DDs some £20 and some £5.

£20 - 05/04/05
£20 - 05/05/05
£5 - 05/06/05
£5 - 21/06/05
£20 - 05/02/06
£20 - 05/03/06
£20 - 05/07/06
£20 - 05/08/06
£20 - 05/11/06
£5 - 05/02/07

i have an outstanding balance of 1948.95. they say if i make 7 more payments of £70 then they will write off the remaining balance.

regarding what i am claiming for, i was under the impression that they cannot force you to buy insurance so all of it .....if i'm incorrect in thinking this please let me know.

many thanks

J

[itsmeandonlyme]

They cant but they did, didn't they...?

The spreadsheet in your case would be a bit more complicated..so i need to think a bit..not long...as it works on a regular basis...(if you would have paid monthly)..you have some unpaid months..so i have to work it out...but do not worry..one way or enother..we wil get there))))

regards,

itsme

[jster$$$]

thanks itsme

yes at the time i took a friend with me and he even remembers me telling the lady i didn't want it and her saying i had to have it.

don't worry about how long it takes because without the help of people like you i wouldn't have got this far in the first place.

i will read more.

many thanks
J