Thread: PPI in general **WON**

Hello all!

I have a few questions I need advise, I am checking through the policy I have with a loan with Welcome finance, in the terms and conditions it states I should have been in full time employment for 24 months, in my case I was. But the loan is a joint application and my wife wasnt full time employed 24months prior to the sale of the policy? Could this be a case of miss selling? Besides from that I would never have agreed to pay £293 a month on just PPI. Its crazy!

Any advise on the standard terms would be great! Im checking all the PPI on everything I have. Is it a general thing that people should be in full time employ for 24 months prior to the sale of PPI?

Thanks
Stewie

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Hi Stewie

I understand from this information that the loan is still ongoing. I imagine that you should have the Terms & Conditions for the whole loan and for the PPI element. These will contain exclusion clauses and will indicate whether you can make a claim if one or both of you is unemployed. Do you have these?

You say that your wife was unemployed prior to the sale ... was she employed at the time of the sale?

How was the loan sold to you? Face-to-face or over the telephone? Were you informed during the sales process that alternative PPI products were available to you other than the Welcome PPI and the comparative costs of these? This is information that a lender as big as Welcome will most certainly have access to.

The FSA regulates the selling of PPI and stipulates that such information is provided during the sales process so that the customer can make an informed decision about purchasing a PPI product that meets their personal circumstances and needs. You obviously would not have chosen to purchase the Welcome PPI had you known the true cost of the premiums!!!

You don't say when the loan was taken out but I imagine that it was fairly recently so the regulations will apply to the sale. Even so, the Principles of Business which are legally binding to a lender within the Financial Services and Markets Act 2000 and contained within the FSA Handbook, will apply here.

It seems to me that most lenders don't comply with the FSA's guidelines when they sell us PPI and in fact, are often clearly in breach of the regulations.

When you've answered the Qs I've asked and had a think about the sales process and whether you believe you were given sufficient information to help you make an 'informed decision', then we can think about the next stage and potentially getting your money back if you do believe that PPI was mis-sold.

Best wishes, P

Can you use Photobucket? It's a way of sharing documents. I haven't used it yet myself though but other folk in these threads upload docs using it.

Doubt whether the arguments they use will be compelling enough to prove that you're in the wrong

http://i448.photobucket.com/albums/q...e/14abcfd4.jpg
http://i448.photobucket.com/albums/q...e/173861d8.jpg

Phew, well done Stewie ... lots of reading for us then

Told you guys I was technically challenged -grin!!!! I dont know if the admin can put them all into one because it confuses me just looking at it.

Summary of everything...

Basically I bought the car on the 6th Jan 2006 and walked into the showroom and selected the car I wanted. After this I filled in a bunch of papers, I really didnt pay attention to anything and I was really under the impression it was all part of the loan, I had no idea this was an option that I could refuse or ask for alternative pricing. I had only been in the country for 5 months and it was the first hire purchase I had made. I didnt have a clue how the "system" works.

I did get some faxes from Car Giant a few days after I took delivery off the vechile. You can see the dates on the fax sheets.

I was aware of added insurance but didnt know the process and it was pushed onto me like it was something I needed to have and was important. I didnt know any different. There were two sales people involved. The first gent was the Senior manager and he left half way through and was replaced by a Junior sales person.

I made the mistake of using a generic template when requesting my PPI back and I think this was a mistake as now I am being ripped apart by the argument they have put up.

I hope someone can help.

Stewie

Don't worry, the information is all there and we can read it and get back to you.

Hey Stewie

Pffftt to the person from the 'other forum'. Let's have a go at this ...

I've had a read through the documents you provide and they answer the majority of the Qs I asked you in my first post.

Even through you have been provided with a Demands And Needs Statement, my view is that this document is poorly prepared and does not really set out how the policy suits your particular needs.

See this information below:

From the Treating Customers Fairly section of the FSA website, there is a section focusing on PPI. Where poor practice, it deems, included:

• Not explaining the PPI product clearly, including significant exclusions and limitations of the policy.
• Failing to ensure the customer was eligible to claim against the product.
• In advised sales, not finding out whether the PPI policy was suitable for the customer
• In advised sales, poorly put together statements of demands and needs that did not explain the firm's recommendation or tailor the information to the individual customer.
• Inadequate systems and controls in place around the sales process. These could result in sales staff not following the firm's own processes, and ultimately for inappropriate sales practices

The chap who replied to your complaint acknowledges that the salesperson didn't comply with FSA guidelines in explaining other cover products available and the comparative prices of these, against the PPI product you were being offered. This is a clear breach of FSA regulations and the Banking Code.

You are obliged to receive information that helps you make an informed decision as to whether the PPI product meets your needs and personal circumstances. I doubt whether you would have taken the product had you known the true cost.


I think you should write a letter explaining that you believe you have been mis-sold PPI and that you want your money back.

If you'd like help with the letter, let me know. I'm happy to help you wih this ...

Painty x

Stewie, it may help you to have a read through of this, looking in particular at Section 3 and the reasons for mis-selling

PPI - Consumer Wiki

Originally Posted by 082stewie

Hiya Painty!

Yeah lets give this a go.

Since it was the final response from Car Giant I should put my letter together confirming the issues you have pointed out and direct my query straight to the fos?

Any idea what the turn around time is when submitting complaints to the FOS?

Do I point out my mistakes with the inconsistancy in my initial complaint?

You really are good at this

Thanks for your time, it is appreciated and I will show my appreciation.

Stewie

Even though it was their final response, you will need to follow timescales and the process of letters. This will demonstrate to the FOS or the Courts (if necessary) that you are a reasonable person who has given the lender every opportunity to provide evidence that they have not mis-sold the product. In addition, you will need to set out precisely the reasons why you believe the policy was mis-sold to you, and the FSA regulations and guidelines that the lender has NOTadhered to/breached.

Therefore, I think that your next letter should do this and give the lender time to reconsider their position and the fact that they are being made aware of your knowledge and level of disatisfaction.

They will no doubt fob you off again in which case you send your lba then escalate your claim to the FOS or the Court as you see fit.

Thanks for your appreciation.

If you'd like a hand with your letter, let me know and we can do this tomorrow.