twisty1 V halifax help please

[twisty1]

Hi there

I am having a problem with my PPI reclaim on a loan for £5000 made over the phone in November 2005 with halifax and would like some help please.

 

I made a complaint about my PPI on 26th September 2007 and on 10th December they agreed I was missold on the basis that I had not agreed to the PPI on the loan agreement form, but they had been charging me PPI for the last 2 years, and that they would contact me with an appropriate offer of redress.

 

The have now told me that I have to take out a new loan and I will not be getting any money back it will just come off the new loan.

 

the old loan figures were:

 

Cash loan £5000.00

insurance loan £1622.53

total for cash loan £8056.44

total for insurance loan £2614.08

Total loan £10670.52

 

repayments £127.03 per month @14.9% APR over 84 months

 

They sent me 2 new loan agreements apparently they got the figures wrong the 1st time.

 

The first amended areement was:

 

cash loan £5000.00

total loan £7144.80

 

repayments £119.08 per month @ 14.9% over 60 months.

 

The loan they now say is the right one figures are:

 

cash loan £3453.00

total cash loan £4934.40

 

repayments £82.24 per month @14.9% over 60 months

 

To date I have paid £2794.66 ( 22 months @ £127.03)

 

I phoned and asked what would happen if I refused the new loan as I want the money back and I was told that if I didnt accept the new loan I would have no chance of claiming it back as they were being reasonable.

 

My questions are :

 

1) Do these figures seem right? How do they work it out?

 

2) Can they refuse to give me any cash back?

 

3) Do I have to accept the new loan or lose everything?

 

Thanks for any help

[alanfromderby]

With PPI on loan that is still running, they said re-arrange the loan by writing off all amount that remain outstanding in respect of borrowing for the PPI premium, including any interest and charges, so that in future the number and level of outstanding repayments against the loan are the same as would now have applied had we not taken the original loan sum without PPI cover. All premium paid to be paid back with 8% from the day of each payment to the day of compensation all to be received by cheque.

 

 

Another member has received this information from the FOS, which would seem to fit with your situation.

[twisty1]

Thanks for that.

So shall I write back asking for that then?

I have written to the FOS in november but have heard nothing from them except acknowledgement of receipt of my complaint letter so should I phone them and ask them what they are doing?

thanks again

[alanfromderby]

The FOS are seriously struggling to deal with claims in a timely manner - it is often 3/4 months before they even start to look at some claims.

[twisty1]

OK thanks

so what now

Halifax say I have 14 days to accept the new loan or the case is closed.

[alanfromderby]

It really depends on how far you feel able to take them on. If it were me, I would be saying to them that I do not accept the new agreement, and in 14 days I will be commencing a county court claim against them - but that's if it was me.

 

Can I also ask if they have agreed to refund 8% interest on top of the amounts you have paid?

 

If not then you are entitled to demand that as well.

[twisty1]

I dont know if the new loan has the 8% taken off as I dont understand how they got the figures.

I was just told that the new loan puts everything right.

I asked for a breakdown of how they came up with the new loan and I was told it was too complicated to explain.

[alanfromderby]

It is your call.

 

As I see it you can either take the new loan, and then pursue them for the extra they will clearly owe you. Otherwise you can give them 14 days to agree to the terms that the FOS have been imposing on other lenders or you will take them to court.