CL Finance v Questioner A PPI Question

[questioner]

Edited January 12, 2010 by citizenB

[citizenB]

A claim for mis selling of PPI is being drafted for the above agreement at teh moment.

 

Because there has been some confusion as to who the claim should be sent to as this account has been passed from pillar to post via Santander / GE Money / and now apparently assigned to CL Finance. It was decided to phone the Financial Ombudsman and FSA for advice.

 

This was the outcome of that conversation

 

Retail Financial Services Limited as appointed representatives of Bank of Scotland would need to be approached in the first instance. Although it would have been nice if Santander/GE Money or CL Finance could have said about 3 months ago and saved so much time.

 

Further revelations came out of this conversation. It was assumed that Questioner could claim the "single premium policy + interest" that was applied to the beginning of the loan. Then add 8% interest. This apparently is not so.

 

As the loan has not been repaid in full and is currently in dispute, the most that Q can hope for is the loan to be restructured without the PPI and associated interest that was added iniitially. A long with payments already made to the loan that would almost certainly clear the outstanding balance.

 

Does anyone have any comment on the above.

 

Does the information given by the FOS sound correct ?

 

Thanks

[Nagasis]

I can't advise on what the FOS have said, but I am in a similar situation but its carcraft/blackhorse/and now cl finance.

 

The PPI is still outstanding and all i am interested in is getting the PPI removed which would wipe the balance (with a little left over).

 

Heres my thread over in ppi and postgg is kindly helping out

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/240898-carcraft-blackhorse-clfinance-ppi.html#post2693324

 

I would be interested in hearing how this goes as currently I have no idea who the insurer is with my case

[dx100uk]

typically in these cases the PPI element of the monthly re-payment is removed, thus reducing the monthly sum.

 

for those months where the PPI element has been paid, you get 8% stat charged from the date it was taken, upto the date of the PPI claim.

 

now, if the loan is in ARREARS they can offset, if not, they cannot and must pay you by cheque or bank transfer.

 

dx

[citizenB]

Thanks dx, that was something I was trying to argue with the FOS.. if the monthly payments had been made then the portion of PPI in that payment should attract 8% interest.

[dx100uk]

yes and that what they advise

 

hence why hfc cough and so so a+l

 

or look in sucessess thread for more examples.

 

even if the loan has run its course, you claim the same way [if you know the payment dates, which is where an sar or bank statement evidence is a winner].

 

dx

[citizenB]

So the loan could be restructured without the PPI and interest which was added at the beginning of the loan.. then a separate schedule for the payments already made toward the loan claiming the contractural or 8% interest on the ppi element of the payment .. yes ?

[dx100uk]

yep

and they cannot force a new agreement either.

 

dx

[questioner]

yep

and they cannot force a new agreement either.

 

dx

 

 

That is a good point.

 

I WAS TOLD THAT GE HAD SIMPLY "CHANGED" ACCOUNT NUMBERS WHEN THEY TOOK SOLE OWNERSHIP. THEY SAID - CUSTOMERS WERE NOTIFIED ABOUT THIS CHANGE IN "ACCOUNT DETAILS."

 

THAT WAS NEWS TO ME.......

[katie3105]

So from what has been said a claim could be made for ppi + interest added to loan then another claim for payments made toward ppi + 8% stat interest. What about stat interest on ppi added to loan at the beginning ?? am confused each thread says different

 

[dx100uk]

no - one claim.

 

firstly cancel the PPI.

 

then the monthly repayment should fall [the removal of the monthly ppi re-payment].

 

for those months where the PPI element has already been paid, you can charge 8% stat int from the date it was taken, upto the date of your PPI claim.

 

if the loan has yet to be completed, the ppi +their int should simply be removed from the outstanding, you can't claim it back - as it has not been paid yet.

 

dx

[katie3105]

If you cancel the ppi though they will have to refinance the loan though as it was included with it. His loan was for £15000 at 8.2% apr which should be £21750 and he has paid £13,750 so far including payment toward ppi. So if he claims back the £4505.85 towards ppi payments + interest then does that mean he will have paid off most of his loan as his claim would be for about £6000 and if they agreed to refund it then they could offset that against his balance. Or, does it not work like that i.e they say he owes £18500 still including the ppi ? forgive me for not understanding !

[dx100uk]

No restructure the loan

As said they cannot force a new agreement

They must place the creditor back in the same position as if ppi had never been included

 

Dx

 

 

That ppi that has been paid attracts 8% stat int from the day it was charged to the day of the claim

They cannot off-set the balance only any arrears, and that will be off the restuctured balance

[katie3105]

Yes but if the total ppi + interest was £10603.73 and he owes 18500 and has already paid 4505 off the ppi part would they take the difference (6100) off the loan amount owed i.e the £18500 making it about 12400 ?? then he could claim a refund of amount paid on ppi plus stat interest. is that about right ??

[dx100uk]

This someone elses thread

 

 

You cannot calculate the ppi refund because we don't know the payment date so cannot calculate the 8% correctly.

 

 

Dx.

[katie3105]

Northern Rock loan with huge ppi can it be reclaimed ??

 

Here is the link to my thread the details are all on it if you would be kind enough to take a look I would really appreciate it. Thanks

[questioner]

I am also interested in what prescribed terms may have been screwed with in the original so-called agreement due to the addition of an unwanted/unfit for purpose PPI policy?

 

What about the issue of missold PPI creating an unfair relationship between lender and consumer?

 

PPI sellers have been fined big time for failures in this field. What they have done is very wrong. Therefore when a lender has been found to be guilty of such an issue they are accountable, just like anyone who commits a crime. They have made extra loot out of our ignorance and it stinks.

 

I see an analogy with a crook who once stuck a gun in your face and demanded money. He latter is exposed but you are then expected to deal reasonably with him...

 

Is it just me or...?

Edited January 17, 2010 by questioner