Thread: PPI and Rescision - help!

Morning all (as George Dixon would say)

Ah, those the days, when tv was driven by steam, people saved for what they wanted and the Police Station at Dock Green, blue light n'all was still there.

I have one or two questions to ask the answers to which may be useful for others... aside from which, I dunno where else to ask.

Does a lender, in this case Sainsbury have to disclose the commission they receive from a single premium PPI policy attached to a capital loan?

The Subject access request shows the figures. ....... the gross premium (added to the loan) was £3000 and the NET premium paid to the insurer was £1000 for the entire loan term. £2000 is pretty good commission for doing not much, innit?

With interest it's quite a bit more. My son is self employed and nets before tax £12000 (has two kids too).

He relucutantly accepted the PPI even tho he was told it was optional because he was in a very bad situation with his car without which he cannot earn and needed the money like urgently. Now he is wiser, had he not been in such a panic he would have looked closer and would have discovered he could've got the same policy hugely cheaper and monthly and would have declined. Hindsight is wonderful.... still, he swears he did feel pressured at the time, part of it his own dire circumstance - his car had simply given up on him.

I'd also appreciate any thoughts.... he did an s77/78 last year and having only recently discovered Defaults, has found that the DN doesn't comply...
How do you like this.... The Default Notice was dated....24th of the month, (as it happens the given date was 2 days short of 14 clear).

Even better, he then received a Termination Notice DATED THE NEXT DAY, the 25th (YES, the same month)... both signed by the same clerk... Hayley Owen.

He has another Termination letter on file dated 2 months later, but no earlier dated Default Notice to match... however, as the situation above was all done within 24 hours 2 months earlier, any attempt to remedy their mistake, I think, does not count. Perhaps they're hoping he would not notice.

So, what would be a good course of action here? .... the way I see it, recsision of contract could mean that he claims back all the PPI he has paid.... thing is, would this work?

We asked in the SAR to provide any and all info regarding the PPI and transcripts of phone conversations.... they sent nothing except a screen shot showing some figures and the premium, net and gross, but later, in a letter they asked for dates and times of telephone conversations which of course is crazy - can they get away with this?

Finally, tho I'm sure there are other points to check, they did not state that the premium could have been paid monthly or that he might seek another quotation. Seems to me that this is one reason we have the Fin Serv Act... to stop banks using their priviledged position in the marketplace from selling for commission.

I ask the above question re disclosure because they are FSA registered and those selling insurance are supposed to declare commission.
Lastly, would PPI have been suitable for a self employed guy in October of 2004?

If there is a standard letter that I might adapt if this can be a go-er, any assistance would be greatly appreciated.

Many thanks
Charlie