angling_man/ Firstplus PPI reclaim***won***

[angling_man]

Unfortunately that cashback only pays back the premium as per the agreement, not all the interest I've paid due to the premium being added to the total loan amount. Over the 20 year term, the interest on that premium will amount to around £20,000 and I want to avoid paying that as the PPI was mis-sold. The interest on the premium so far amounts to around £3,500.

I'm going to put together the letter reclaiming the PPI premium and interest now. Will post it later for comments, before sending.

 

AM

[angling_man]

Here's the letter, any comments would be appreciated before I send it...

 

In August 2004, I took out a £40,000 secured loan with you over the telephone. This loan included a payment protection insurance policy costing £7,972, the premium for which was added to the loan amount.

I now believe that I was mis-sold this payment protection insurance policy for the following reasons:

• I was not asked if I wanted payment protection insurance, it was automatically included.
  
• I was not asked if I have other insurance which would cover the loan.
  
• I was not told I could buy payment protection insurance elsewhere if I wish.
  
• I was not told the payment protection insurance could be paid monthly.
  
• I was not informed of the true cost of the payment protection insurance due to the interest it would incur over the term of the loan
  
• The payment protection insurance was inappropriate for my needs as it only covers the first 5 years of the loans 20 year term.
  
• The payment protection insurance was inappropriate as my employer provided a generous illness and redundancy package.
  

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of the premium, and subsequent interest that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

[Goldlady]

Sounds ok to me. Best of luck with it:D

[alanalana]

Hello am,

 

I had a good look at your proposed letter. I have copied an old letter of mine cobbled your points into it just to flesh it out a bit more. Perhaps you could have a look it needs a bit of tidying up due to pasting and copying but if you can use it, if it suits, please do.

 

Para deleted after post from goldlady below

 

 

A PPI policy was attached to a secured loan obtained from you in August 2004,

I took out a £40,000 secured loan with you over the telephone.

This loan included a payment protection insurance policy costing £7,972, the premium for which was added to the loan amount.

 

I am now convinced that I was mis-sold this PPI policy for the following reasons:

 

I was not asked if I wanted payment protection insurance, it was automatically included.

 

I was not told the payment protection insurance could be paid monthly.

 

The payment protection insurance was inappropriate for my needs as it only covers the first 5 years of the loans 20 year term.

Underwriting a Policy of Insurance: When the details of a loan were discussed, Your sales advisor failed to check my personal circumstances at the time of the sale, which they are under obligation to do when underwriting a Policy of Insurance. If they had done so, they would have realised that the PPI policy was useless to me. At no time was any attempt made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed it was required at all.

 

Significant Policy Exclusions: I was most definitely not informed that the PPI policy could contain certain exclusions which could affect me and my ability to claim on the policy if I should need to.

 

Widespread PPI Mis-Selling: I have recently become aware of the widespread mis-selling of PPI by some financial institutions, following recent media coverage and recent OFT and FSA investigations regarding the mis-selling of PPI. I believe this is borne out by the Paragraph covering Significant Policy Exclusions above. I am also aware that the question of PPI cover is the subject of an ongoing inquiry by the Competition Commissioner.

 

Alternative Insurance Cover:

Your sales advisors in each case failed to ask me if I had any alternative arrangements for insurance cover. My employer provided a generous illness and redundancy package.

Wholly Inappropriate PPI Selling Bonuses: I understand that some employees are paid higher bonuses if they get prospective creditors to take out PPI with loans. How can the best interests of the customer possibly be met, if there is a clear conflict of interest between your responsibilities to me, and the drive of your employees to sell Payment Protection Insurance whether it is suitable or not in order to receive bonuses?

 

True Nature of Single Premium PPI Not Explained: No explanation was forthcoming from any advisor on any occasion on the full extent of single premium PPI policies, or the fact that they would offer little or no refund if the loan was settled early or if the insurance was cancelled.

I now believe that the single premium PPI policy attached to the loan account was extremely unfair, totally unreasonable and of very limited protection value. I am therefore requesting a full refund of all costs including all single PPI premiums that have been paid, the interest added to these premiums and the payments, that I have paid to date.

 

Furthermore, as I believe I have been unlawfully deprived of this money, I also expect the repayment of the interest at the Statutory Interest rate of 8%.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

 

This is only for your consideration If you want to send your letter than I think it would be ok.

 

aa

Edited October 13, 2008 by alanalana
Paragraph and text removed after goldlady post 30

[Goldlady]

AA - just a thought but if AM cancels it and they then refuse to refund it, or worse go bust before that, he is then signing away his right to at least getting the premiums back which he would still get if the worst happened as presumably that would be underwritten in some way.

[alanalana]

That's a fair point goldlady,

 

AA - just a thought but if AM cancels it and they then refuse to refund it, or worse go bust before that, he is then signing away his right to at least getting the premiums back which he would still get if the worst happened as presumably that would be underwritten in some way.

 

Yes I tend to agree if there is a risk of administration then I believe you are right at least he could approach the Financial Services Compensation Scheme for a claim of refund.

 

I will edit the post above. Thank you.

 

aa

[angling_man]

I definitely don't want to jeopardise the £7,972 cashback I'm due to receive next year when the policy finishes. I've just checked the documentation and if I cancel the policy early, I only get a partial refund of the premium. I'll then have to try and claim back the rest of the premium as well as the interest I'm paying on the premium.

[alanalana]

Hello AM,

 

Keep on with the payments to get your refund when it is due. In the meantime if you can claim mis-selling and get the premium and interest refunded then that will be a result.

 

At least you know you will get the refund but I would still press for written confirmation at this moment in time. It could be useful if firstplus try it on later.

 

aa

[angling_man]

Thanks for all your advice. Been a bit busy this week, but finally updated my letter. This is what I'll be posting to them tomorrow (recorded of course) - unless someone spots any further improvments of course...

A Payment Protection Insurance policy was attached to a £40,000 secured loan I took out with you over the telephone in August 2004. The premium of £7,972 for the Payment Protection Insurance policy was added to the loan amount.

I am now convinced that I was mis-sold this Payment Protection Insurance policy for the following reasons:

• I was not asked if I wanted Payment Protection Insurance, it was automatically included.
  
• I was not told the Payment Protection Insurance could be paid monthly.
  
• The Payment Protection Insurance was inappropriate for my needs as it only covers the first 5 years of the loans 20 year term.
  
• When the details of the loan were discussed, your sales advisor failed to check my personal circumstances at the time of the sale, which they are under obligation to do when underwriting a Policy of Insurance. If they had done so, they would have realised that the Payment Protection Insurance policy was useless to me. At no time was any attempt made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed it was required at all.
  
• I was not informed that the Payment Protection Insurance policy could contain certain exclusions which could affect me and my ability to claim on the policy if I should need to.
  
• Your sales advisors in each case failed to ask me if I had any alternative arrangements for insurance cover. My employer provided a generous illness and redundancy package.
  
• No explanation was forthcoming from any advisor on any occasion on the full extent of single premium Payment Protection Insurance policies, or the fact that they would offer little or no refund if the loan was settled early or if the insurance was cancelled.
  
• I was not told I could buy Payment Protection Insurance elsewhere if I wish.
  
• I was not informed of the true cost of the Payment Protection Insurance due to the interest it would incur over the term of the loan
  

I now believe that the single premium Payment Protection Insurance policy attached to the loan account was extremely unfair, totally unreasonable and of very limited protection value. I am therefore requesting a full refund of all costs including all single Payment Protection Insurance premiums that have been paid, the interest added to these premiums and the payments, that I have paid to date.

Furthermore, as I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

[alanalana]

hello am

 

 

 

 

Thanks for all your advice. Been a bit busy this week, but finally updated my letter. This is what I'll be posting to them tomorrow (recorded of course) - unless someone spots any further improvments of course...

 

 

A Payment Protection Insurance policy was attached to a £40,000 secured loan I took out with you over the telephone in August 2004. The premium of £7,972 for the Payment Protection Insurance policy was added to the loan amount.

 

I am now convinced that I was mis-sold this Payment Protection Insurance policy for the following reasons:

 

 

 

 

 

 

 

 

 

 

• I was not asked if I wanted Payment Protection Insurance, it was automatically included. (without my consent)
  
• I was not told the Payment Protection Insurance could be paid monthly.
  
• The Payment Protection Insurance was inappropriate for my needs as it only covers the first 5 years of the loans 20 year term. (This policy would therefore leave me with no appropriate cover for the majority term of the loan)
  
• When the details of the loan were discussed, your sales advisor failed to check my personal circumstances at the time of the sale, which they are under obligation to do when underwriting a Policy of Insurance. If they had done so, they would have realised that the Payment Protection Insurance policy was useless to me. At no time was any attempt made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed it was required at all.
  
• I was not informed that the Payment Protection Insurance policy could contain certain exclusions which could affect me and my ability to claim on the policy if I should need to.( This is a failure of your staff to ensure the policy was fit for purpose and therefore I contest in the strongest terms that your sales procedures were flawed to the disadvanantage of your customer.)
  
• Your sales advisors in each case failed to ask me if I had any alternative arrangements for insurance cover. My employer provided a generous illness and redundancy package. (This then highlights yet another failure in your sales procedures)
  
• No explanation was forthcoming from any advisor on any occasion on the full extent of single premium Payment Protection Insurance policies, or the fact that they would offer little or no refund if the loan was settled early or if the insurance was cancelled. ( Your advisors have surely not given the correct advice to customers with reference to Payment Protection Insurance products.)
  
• I was not told I could buy Payment Protection Insurance elsewhere if I wish.
  

see this link to add clout to your claim

 

 

http://www.competition-commission.org.uk/press_rel/2008/june/pdf/18-08.pdf

 

 

• I was not informed of the true cost of the Payment Protection Insurance due to the interest it would incur over the term of the loan
  

I now believe that the single premium Payment Protection Insurance policy attached to the loan account was extremely unfair, totally unreasonable and of very limited protection value. I am therefore requesting a full refund of all costs including all single Payment Protection Insurance premiums that have been paid, the interest added to these premiums and the payments, that I have paid to date.

 

 

 

Furthermore, as I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added.

 

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman ((Or the courts if necessary) to investigate my complaint.

 

 

 

 

 

 

 

 

 

 

Please check out the red and the link The letter is good but you could add more clout if you use the bits in red and or the link which will back up the no competition issue.

 

Good luck and remember it is your shout so if you think the letter should go as it is then that is fine and good luck with it you will no doubt have a fight on your hands but CAG is a great way to resolve your problem;)

 

aa

Edited October 17, 2008 by alanalana
spelling yet again

[angling_man]

Okay, thanks for everyone's input. Letter's been updated and will be sent today using 'Signed For' delivery.

AM

[Goldlady]

Best of luck;)

[pinknico]

Sorry to butt in but I think the claim for mis selling goes out the window if you get your money back after the five years, so depending on when you are due this rebate if you are still waiting for the misselling to be resolved and you write off for the rebate it may make the mis selling void.

 

But I must stress I am not 100% sure on this.Just something to check.

[angling_man]

Surely as the policy was mis-sold in the first place they've added an unnecessary £8k to the loan. This will eventually cost ~£25k in extra interest by the time the loan completes, irrespective of whether or not the rebate has been received.

I haven't received the rebate, so am claiming the premium plus interest to date. If I'd had received the rebate, surely there'd still be a valid claim for the interest only.

 

AM

[pinknico]

Totally agree with you, I am in the same position with Picture Finance. I just know that if I had made a claim on the policy I couldn't say it was mis sold and would hate that the rebate is treated in the same way.

 

I have 2 years til my 1st rebate so I am not cancelling in case I don't win my claim and so have a bit of time.

Good luck:)

[angling_man]

Today I received a letter from FirstPlus. It only took 3 weeks for them to respond and they've upheld my complaint.

 

They are going to refund the PPI premium and interest to my account (£11k), adjust the account as if the insurance had never been taken and refund to me the excess payments I've made as a result of the insurance (£3.6k). A whopping £14.6k in total!!!! Thanks GoldLady & Alanana for your help )

 

The only thing they arean't doing is adding the 8% interest I requested on the money they've deprived me of. That would amount to about £650, but I suspect it would delay my claim and could result in a drawn out battle.

 

Realistically, is it worth chasing that extra £650?

 

AM.

[varda]

That's fantastic Angling-Man well done this gives me great hope as I have sent off my SAR's and they have cashed the £10 cheque so just waiting for the paperwork to come then I will be going down same route.

 

Great Success hpoe it sorts things out a bit for you.

[angling_man]

Hi Varda,

I can't believe how quick and easy it was, two letters, no arguments and just 3 weeks. I hope you get a similar result.

 

I did consider a claims company at the very start, but so glad I didn't. Had I used one, they would've taken a 25% fee out of the money and probably taken a lot longer! Can you believe I'm getting a call nearly every week from these companies. How they know I have PPI, I haven't a clue.

 

Anyway, good luck with your claim.

 

AM

[Goldlady]

Fabulous news angling man and an inspiration for anyone else on the Firstplus claims route. I would forget about the 8% as that is really only viable if it gets to court.

 

Looks like you have averted your own personal credit crunch anyway:D

[alanalana]

Hello AM.

 

Today I received a letter from FirstPlus. It only took 3 weeks for them to respond and they've upheld my complaint.

 

They are going to refund the PPI premium and interest to my account (£11k), adjust the account as if the insurance had never been taken and refund to me the excess payments I've made as a result of the insurance (£3.6k). A whopping £14.6k in total!!!! Thanks GoldLady & Alanana for your help )

 

The only thing they arean't doing is adding the 8% interest I requested on the money they've deprived me of. That would amount to about £650, but I suspect it would delay my claim and could result in a drawn out battle.

 

Realistically, is it worth chasing that extra £650?

 

**CRACKING RESULT**

But it pales into insignificance compared to a big fish:D

Enjoy the moment and you are more than welcome to any advice that has been offered. I am pleased for your positive result and when you get the refund don't forget to post in the stickies PPI successess:)

 

aa

[angling_man]

The acceptance form will go in the post Monday (recorded as usual) and I'll let you all know when the money is safely in my account.

 

Looks like I'll be enjoying Christmas rather more than usual, and buying a new fishing rod or two

 

AM

[alanalana]

That will be Salmon rods then not Carp:D:D

 

aa

[tiger33]

hi,i,ve just had a reply from 1st plus stateing i was not mis sold the ppi but they are willing to give me an enhanced rebate of the ppi,its on a pro rata basis of 78% of the ppi,they state that the policy has covered me for 38 months and the rebate is calculated on the unexpired term remaining 22months,due to the fact i was mis sold the ppi should i wrote to them and ask for all the payments back?

[angling_man]

Hi Tiger33,

 

I can't really comment as they didn't argue about my claim, so it was easy.

 

Had I found myself in your position, I would continue to persue them as far as possible. However, I would not cancel the policy yet because if you can't get anywhere, you will at least get the full premium back in 22 months time rather than just 78% now.

 

I assume you've requested a SAR, so what points did you use to claim mis-selling?

 

AM

[tiger33]

yes i sar them,i was self employed so there were certain exclusions,never told me ppi would incur interest after ppi had ended,never told i could get it elsewhere,never told me i could pay for ppi monthly instead of a lump sum at the start of the loan,also after listening to tapes of my application,the salesperson clearly states the amount of the loan and clearly states that includes the ppi,then £15000 was added on to the loan amount,then to hide the true cost with the ppi on top she starts breaking the figures down into monthly figures instead of telling me the total amount.