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Jonny Insider

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About Jonny Insider

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  1. If the whole amount was paid to your solicitor rather than divided up by the lender, that is very similar to the Heath case so you'll need to await the outcome of the appeal. If a broker fee was added to the loan and interest charged on it then that could fall foul of the decision in Walker v Southern Pacific, however that case went to the Court of Appeal last week so you'll need to await the outcome on that one too!!
  2. That is more marginal. In the Heath case the full loan was dispersed as a single lump sum to the borrower's solicitors (albeit that the lender knew the loan would be used for different purposes). The solicitor then decided which parts of the monies received were used for each purpose. You could argue that, in your case, if the two parts were dispersed separately by the lender, then the Heath scenario does not apply as the lender had decided which parts of the loan would be used for what purpose and you had no control over this. In short we need some more test cases in this area to define where the dividing line is. The outcome of the Heath appeal may help when it is published.
  3. Just read this thread and, as a close follower of this area of the law with some experience of it, I thought I'd throw in my comments. Firstly there was no PPI on the loan in the Heath case - this is a very important distinction. Whereas in the Heath case the credit agreement simply showed one amount of credit, most loans that include PPI clearly show the PPI as a separate and distinct amount. In addition, some credit agreements actually state that the credit consists of two loans - a loan of the cash advance and a loan to purchase the PPI. In such cases in my view the Heath decision positively helps an argument that there is a multiple agreement. My strong advice therefore is not to give up!!
  4. Very interesting, Goldlady! What type of loan was it? Secured or unsecured? Was it your main mortgage or an additional loan? Re finding out about the commissions, they generally will not tell you in the first instance however the loan was arranged through a credit broker rather than directly with the lender then almost invariably a commission will have been paid (in addition to any fee the broker charged you directly). If you start legal proceedings, at that point they will disclose the amount of commission paid.
  5. Worth checking if they sold you PPI when you took out the loan - if you've been made redundant you should be able to claim on the policy. Strangely, whilst they're very keen to sell you the policy in the first place, they aren't quite so keen to tell you when you can claim. Could this perhaps be because they get a proportion of the profits made on the insurance fund?? Surely not
  6. In the case we are currently running against GE for undisclosed commissions, at the preliminary hearing the judge asked GE's solicitors (Wragge & Co) whether GE had received any other similar claims and they stated they had not. I'd be very interested to hear if anyone has made a similar claim as I'm sure the judge will not be too pleased if GE have misled him!
  7. Hi Frustrated I'd be interested to know how you're getting on with your claim. I'm currently running a number of similar undisclosed commission claims against GE. Jonny.
  8. Hi Michelle. Not sure form the above when you took out your loan but I guess it was quite recently. FIRSTPLUS use an automated decision engine to determine whether or not to sell PPI. They ask a series of scripted questions, type in the answers and then the computer tells them whether or not PPI should be recommended. Ask for the call recordings together with copies of the responses that were typed into the decision engine and the result from the engine. If they have not input the correct information, you may have a claim. If they have typed in the answers you gave correctly you'll find it more difficult to argue it was missold. Did you tell FIRSTPLUS that you intended to pay off the loan after a short period? If you did, you definitely have a claim as these loans are not designed for short-term borrowing and so it should not have been sold to you.
  9. Hi Saranev. Glad to see you're making progress with your complaint. Can I be cheeky and, if you are contacted again by the BBC, put them in touch with me? I'm an industry insider (you'll see I have a number of posts on this site helping people with claims) and there's plenty I'd be happy to share with them that I'm sure they'll find interesting!
  10. You've certainly got a case. This is typical of this type of PPI product. The cost of the insurance is added to the loan as a lump sum at outset and you pay interest on it throughout the term of the loan. Thus, whilst you might get back your original premium after 10 years, you do not get back the interest. If you then try to cancel the insurance early (including if you pay off the loan early), you only get a small fraction of your premium back. If this wasn't explained to you clearly by the salesman, you'd have a good case with the Ombudsman. These companies know that the vast majority of lenders will pay off their loans early and that is how they make their money - through early settlement charges and low refunds on PPI. Make a formal complaint and make it clear you will go to the Ombudsman if you don't get a fair result. Both the early settlement charges and the low rebate on the PPI are likely to be chalenged by the Ombudsman and Paragon will know this.
  11. You'll get a copy of your credit agreement anyway if you make a subject access request. You could have a number of claims here. Did you take out the loan directly with FIRSTPLUS or through a credit broker? The sales call will have been recorded so, if you were told that PPI was a requirement of the loan and to falsify your income, they should have a recording of this. Make sure you ask for recordings of the calls as part of your subject access request. Also if you ask for an account statement this should show all the interest you have paid on the loan and PPI.
  12. Hi Paul, FIRSTPLUS joined GISC, from memory, some time in 2001 so you may well be able to go to the Ombudsman. It's certainly worth a try - FOS will tell you if they think it's outside their jurisdiction.
  13. Tagal - sounds like an admission of guilt to me by the insurers, though they'll probably try to argue it was the broker's responsibility to give you the information. The Ombudsman will sort it out for you. I'm surprised they're letting it go that far! Lilal - The Ombudsman is unlikely to be very sympathetic to the insurer or broker. This is such a material term, I suspect FOS would expect it to have been specifically drawn to your attention at point of sale, not left to documents that are generally issued after the sale has been made.
  14. Undoubtedly this should have been made clear. I can't recall when you took out the plan but, if it was aftert January 2005 you should have been given a "Key Facts" document before you took out the insurance that made this clear. The Ombudsman would certainly consider this to have been a material restriction of the policy that should have been brought to your attention at point of sale. If it was not, you should have a pretty water-tight case. Even pre Jan 2005 you should have been issued with a policy document that would tell you this.
  15. This is pretty standard for this type of loan. Generally the PPI will only cover you for between 5 - 7 years. The cost of PPI over a longer period would be even more prohibitive!
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