Paintball v Magic Loans Ltd

[Paintball]

I currently have a loan with LMC (taken out 15/09/06) which includes a Single Premium amount of £4,326 in PPI added to the total amount owing on the loan. This PPI amount includes interest.

 

I have no recollection of actually agreeing to the PPI and have requested cancellation and reimbursement. Sterling Insurance who act as the Insurance Broker for LMC have corresponded with me and stated that I am entitled to a partial reimbursement; no actual refund, just a partial amount which is reduced from the total owing on the loan. The letter stated that this includes "incurred expenses" and "incurred risk".

 

I replied to Sterling requesting a breakdown of their costs to include risk and expenses and received a complaints procedure document Quel surprise!!!!

 

I have issued a complaint through the FSA and their reply followed on 22 February informing me that they will provide me with a response as soon as they can.

 

...

 

 

Razz

[Paintball]

Hi Helly..

 

Through the Financial Ombudsman Service complaints procedure. I understand what they have refunded to the balance of the loan, and am concerned now about the lack of reimbursement for the amount paid plus interest.

 

I can wait until the FOS makes its decision and gets back to me (hmm hmm, waiting patiently:rolleyes: ) or I can procede down the LBA and N1 route as I did with my Capital Bank PPI claim (blatant mis-selling to a student!!)

and claim/argue mis-selling ...

 

Painty x

 

 

[Paintball]

Hello Painty

 

If you have put a complaint to the Fos they will investigate thoroughly, although I do believe they are rather busy, due to the consumer revolt:D They do take time, but I also believe that they are upholding 80% of mis-sold ppi complaints.

 

If you do the court route, this can also that some time, so its your call really.

 

I wish you good luck in your decision:D

 

Keep us posted

 

Thanks for the support ... I must admit I'm a bit of a 'Claim Whore'!! I usually proceed straight to the N1 route and no messing about, but on this occasion thought I'd give the old FOS a chance to do their bit on my behalf!

 

However, I'm twitching badly at the mo, partly because I've handed control over to another party and have to wait for their decision and don't have access to every stage of the process and partly a general sense of impatience!!

 

 

 

[Paintball]

As part of the FOS investigation process (lengthy!!) LMC have abdicated all responsibility for the selling of the PPI, referring me instead to the broker which was Oryen.

 

I have already received a partial reimbursement of the PPI which was less than half of the Single Premium sum added to the loan; £2119.74 from a total £4326.00 LMC have offset this amount against my monthly loan payments and have not taken any loan payments since December 2007.

 

They did not advise me that this was what they were going to do. I received no correspondence from them and only discovered this 'method' when I called them. As I stated to the Customer Services rep, they have done this "without my knowledge or consent" ...

 

I still have to decide whether I will be going for the full mis-selling of PPI and claiming this from Oryen in which case, I would be claiming the rest of the full amount not reimbursed by LMC.

 

Any suggestions anyone?

 

 

BTW, have almost won my case against HBOS (sued as Capital Bank) for return of mis-sold PPI, Judgment issued last week for full payment.

[Paintball]

Bump ...

[Paintball]

Bumpety bump ... anyone there?

[Paintball]

Nicho, you are a star Thanks for this response, it's exactly what has happened to me except that the T&C's for the PPI that I finally received after the FOS's intervention state that I'm entitled to 49% reimbursement.

 

However, I'm still unhappy with this for the reasons you state in your message and don't think it's fair that I'm still paying the premium in my monthly amount which includes interest. What I feel I need to do is work out what the interest is and how much that would add to the amount 'reimbursed'.

 

Watch this space and I'll be watching yours ...

 

P x

[Paintball]

I've done that Nicho but they're stalling so my next step is to send a SAR to LMC and then claim the lot back based on mis-selling. I will need to claim it back from the broker, Oryen.

 

A tad complicated ...

 

 

Razz

[Paintball]

i am in a similar situation to yourself. I wrote to sterling to ask them to cancel the single premium policy that was taken out with my initial loan. they sent me a cheque for 40% of the single premium. I wrote a letter to them to ask how they had arrived at the figure and they sent me a breakdown of what costs were incurred e.t.c. I don't believe that 40 % is a fair amount considering that I will be paying this ppi for the duration of the loan with interest added. I am not sure really what to do now. I have written to the broker that set the loan up and asked for Data Protection Act. I don't believe that i was told that the ppi only covered me for 3 years. Not received the info yet and the 40 days are near. Will get back to you when i have more info

I'm reviving my claim after a period of confusion with it. Noted your comments Nicho which mirror my own circumstances ...

shouldnt you be sending the S.A.R - (Subject Access Request) to your broker then ???

Yes, I should Nicho I have finally unearthed the original paperwork for the loan.

 

It was brokered by Magic Loans and I'm sending the S.A.R - (Subject Access Request) today. I refuse to accept the 40% refund, was mis-sold PPI in the first place as Magic Loans did not follow FSA selling guidelines and Banking Code of good practice and did NOT treat me fairly, and I was not told that I would be paying the premium and interest for the duration of the loan once the three year period of the cover was ended. The latter amounts to concealment at the very least and misrepresentation at worst ...

 

 

The battle continues

[Paintball]

Received today the most arrogant response from Magic Loans regarding my S.A.R - (Subject Access Request).

 

To quote from the letter: "Our records show that you made a previous complaint about the sale of PPI and a comprehensive reply finding your complaint not to be upheld was issued to you on 25 February by my colleague X. Within this reply, it was clearly stated that you had a period of six months [...] to refer your complaint to the FOS if you were unhappy with the decision. You did not do so and [...] your complaint became time-barred and would not be accepted or investigated by the FOS if you escalated it to them now.

 

As a consequence of this there is no case to answer regarding the sale of PPI. Indeed, my colleague found there was no case to answer in the first instance. As your request under the Data Protection Act 1998 was clearly stated a directly linked to the sale of PPI, there is no reason to involve you in the expense of the request and I therefore enclose your cheque [...] "

 

Firstly, I never received a letter from Magic Loans in February and I have never contacted them before my SAR in September. I have always dealt with Sterling Insurance, the underwriter.

 

Today I called the FOS who began their investigation of the complaint in February for me and who are baffled by this response, in particular the time-barring, informing me that they'll be happy to continue investigating it on my behalf. The chap was also baffled by the refusal to comply with my SAR!!

 

I have informed the chap who sent the letter that his reponse is arrogant, that the case is NOT closed and that I have a legal right to the info they hold on me regardless of whether it relates to a complaint or any other issue.

[Paintball]

aa I was stottin' this morning when I read that letter. But chuckling afte I spoke to the nice young man at th FOS and definitely now

 

Now, in relation to your comment about another letter going off the the ICO about Magic Loans failing to comply with a SAR, can you direct me to another complaint for this co? Save me a bit of time trawling but happy to try anyway;)

 

Cheers

[Paintball]

Thanks aa

 

Magic Loans have until 11 November to comply with my SAR ...

[Paintball]

From my letter to them, Magic Loans have complied with my S.A.R - (Subject Access Request), up to a point!!

 

They state that:

 

"We are presently unable to locate recordings of the telephone calls we made to you or you to us. In order to help us to locate and retrieve any telephone ranscripts you require, we shall need you to complete and return the enclosed the subject access telephony form giving as much detail as you can in terms of numbers, dates and times."

 

The form asks me for the exact date and time of the sales conversation. Erm, correct me if I'm wrong, but isn't it Magic Loans who are supposed to be providing me with this info, not vice versa? They have included a few nice forms detailing the calls made to me and comments made by the sales people, but suddently are not able to locate the sales call and content of this. Slight contradiction there?

 

Also attached with the letter is corespondence from Magic Loans from February 25 this year (which I had never received) informing me that they could not uphold my mis-selling complaint:

 

"I would advise you that I have reviewed the sales processes in place and documentation issued to you at the time of the sale and [...] feel that Magic Loans Limited did make you aware at various stages through the process that the insurance was optional."

 

Hmmm, no record of the sales call so how can this be stated with such certainty?

 

I have no recollection of any discussion about the overall suitability of the PPI product nor of true the cost of adding it to my loan compared to alternative options in the market place, nor is there any documentation to prove this took place.

 

Interestingly, no keyfacts document sent to me in the S.A.R - (Subject Access Request) ...

 

Thoughts anyone on the Telephony SAR?

 

Edited November 18, 2008 by Paintball

[Paintball]

Haha aa, just the response I would have hoped for. Many thanks

 

I have begun to formulate my reponse. ML really are stinkers and have concealed, misinformed, and taken advantage of my (previous) lack of knowledge and understanding of PPI to add a product that has a whacking great cost attached to it, which had I known this at the time of taking out the loan, I would NEVER have gone ahead with ...

 

This claim is typifies what the FSA and the Competition Commission wish to do away with; PPI sold with poor sales practice as a Single Premium and the true cost of it and the loan not explained to the borrower!!!

 

I'm not so green now though so watch out ML, here I come with all guns blazing ...

 

 

:D

[Paintball]

Yup, I sure do

[Paintball]

I can see you peeping there JM lol

[Paintball]

My post #23 and request for comment/help has so far received over 200 views ... but just one response ...

 

Non-compliance LBA sent today.

[Paintball]

HH and aa, I'll PM you on this matter

[Paintball]

Don't forget me PB - if I can help I will.........

 

Yes, you were teleported in from another forum ... dispensing invaluable advice

 

 

Beam me up Scotty ...

[Paintball]

Hi, just came across your thread. Re your post 23, surely if they can't supply you with evidence of the telephone conversations that strengthens your case against them rather than the opposite. If they can't prove they told you x, y and z then you have them; or as the OH has just suggested perhaps they do have the call transcripts but they are equally damaging to their argument.

 

Battle on girl - and let me know if you still want to have an evening of doing sums:D

Thanks to both of you ... I think an evening of sums ... and beer... is quite in order :D

[Paintball]

Are you counting the number of empty wine bottles in my recycling box? Last count about 35 I think

[Paintball]

Teehee J, it's Christmas coming up soon ... want to buy me a present?

[Paintball]

After a conflab with Goldlady (thanks pet ) have sent a SAR to obtain statements on this loan account.

 

 

Waves to Guest ...

[Paintball]

We do our best up here in the North East lol

[Paintball]

Hmmm, is that a good thing or a bad thing? (pondering...)