Thread: First Plus PPI mis-sold??

how long does the PPI cover the loan for? the full length?
Was the ppi optional?

Have they given you their final response ? If the PPI did not cover the term of the loan and you were sold a single premium policy you may have some success taking your complaint to the fos.

I don't think it's their final response. They have said that they will leave the case open for 8 weeks. I have read elsewhere on here that as they have recommended their own PPI they have acted in an "advised" role by advising me that their PPI is the best for me. Clearly this is not the case and the sales agent would have received commission based on the sale. As they "advised" me to take out their PPI without comparing it with any other cover does this count as mis-selling??

Have a read of this thread it gives all reasons for mis selling.
http://www.consumeractiongroup.co.uk...claimants.html

OK, i am writing back to them and here is a draft of my letter, any comments welcome.


Dear Mr F+,

I have received your letter dated 16th February from The Reclaim Helpline regarding my complaint that the PPI sold to me when I took out a loan with you was mis-sold. I am disappointed with your response for a number of reasons.

In your letter you state that “The answers that Mr Pubman provided highlighted a need to protect the loan and the payment protection insurance policy was recommended in order to meet this need.”
My interpretation of this is that the PPI was sold on an advised basis as the sales agent recommended the policy they were selling. The agent did not compare the policy with any other on the market and I was not advised that other policies were available elsewhere. They also did not mention that they would receive commission when I took out the policy.
I paid for the policy up front and in full and interest is being charged on the loan provided to finance the PPI. I was also not advised that equivalent cover could be provided by paying on a monthly basis thus avoiding having to pay interest on the total amount to you.
Therefore I request that you repay to me the full amount that I have paid for the PPI for the duration of the loan plus interest at 8%. This amount of interest is commonly added by the courts should the case need to go that far. The PPI part of the monthly payment is £144.42 per month and given that the account was up to date at the end of December 2008 I had made 31 payments totalling £4477.02. The interest at 8% on this sum is £358.16 giving a total of £4835.18.
If this amount is not refunded to me then I will have no option other than to proceed to the small claims court.

Your final post is why you should win if you have to take it to the fos.

if you haven't already posted this letter please add about the PPI only covering 5 years not the full length of the loan and yes I believe you have a case.
If you do cancel the PPI please make sure you get some other sort of cheaper cover or income protection.

Hi,

I have redone the letter and am now ready to post it.

Dear Mr F+,
I have received your letter dated the 16th February 2009 from the xxx regarding my complaint that the PPI sold to me when I took out a loan with you was mis-sold. I am disappointed with your response for a number of reasons.
In your letter you state “The answers that Mr Pubman1 provided highlighted a need to protect the loan and the payment protection insurance policy was recommended in order to meet this need.” This indicates that the PPI was sold on an advised basis as the sales agent recommended the policy that they were selling. The agent did not compare the policy with others available on the market and I was not advised that other policies were available elsewhere. They also did not mention that if I took out the policy they were recommending they would receive commission based on the sale.
I paid for the policy up front and in full with finance provided by you totalling £17,000. This was added to the secured loan. I was not made aware that the policy only lasted for 5 years but I would be paying interest on the finance for the full term of the loan, some 25 years. £144.42 per month of my normal payments is for the PPI. Over the full term of the loan this would mean I would pay £43,326 for this 5 year PPI policy. I believe this to be unreasonable. I was also not made aware that I would need to take out a new PPI policy every 5 years.
Additionally I was not advised that equivalent cover could be provided by paying on a monthly basis thus avoiding having to pay interest on the finance provided by yourselves. Research has shown that PPI cover for the loan repayment could be provided for as little as £12.60 per month through an independent company. Rather than advising that this cover could be provided elsewhere and for significantly less money your sales agent recommended adding £17,000 onto the loan.
You have also failed to list the PPI and loan repayments separately on the credit agreement as required.
Therefore I believe that the PPI that your agent sold me was mis-sold. I request that you repay to me the full amount that I have paid for the PPI so far plus interest at 8%. This amount of interest is commonly added by the courts in cases such as this. The PPI part of the monthly payment is £144.42 and given that the account was up to date at the end of December 2008 I had made 31 payments to you totalling £4477.02. Interest on this amount at 8% is £358.16 giving a total claim of £4835.18. Please send this sum in the form of a cheque made payable to myself within 14 days. Failure to do so will mean that I will forward my complaint to the Financial Ombudsman Service.
I look forward to hearing from you in due course.


Any final suggestions or is it all good?

Thats a brilliant letter.

Response from F+!! First a standard letter saying that they will look into complaint, then today letter offering 78% plus what ever the refund would be if I cancelled now - total refund would be just over £3100. Refusing to admit that they have done anything wrong and offer is gesture of goodwill. Why would they offer me £3100 if they had done nothing wrong. So off to fos we go then. They have not responded to the actual comlpaint as far as I can tell, nor addressed any of the issues raised. They say it's their final response.

Well done Pubman, fill out a fos complaint form and when you have completed it, photo copy it and send a copy to FirstPlus so they know you are not messing around.Goodluck x