Mis sold insurance on loans???

[groovyglo]

i'M SO GLAD i'VE FOUND THIS THREAD AND WOULD APPRECIATE IT IF YOU PATIENTLY BEAR WITH ME AS I TELL MY STORY.

 

I am so angry at myself for being so impulsive and not reading my agreement with the loan company. I took out a loan with The Associates now known as citifinancial on 09/07/02 and even though I informed that I had an income replacement policy with Alico, I was advised that I would not be able to take a loan without the insurance being offered as Alico was not accepted. At the time I was so desperate to get the money, I never read the agreement and was just interested in what the monthly repayment was affordable. At the time I thought it was. The type of insurance was never explained to me. These are a record of the events that followed:

 

loan paid to me £ 1500.00

insurance £ 610.84

arrangement fee £ 75.00

amount financed £ 2185.84

The APR 48.5% 24 MONTHLY PAYMENTS AT £129.41.

 

At the time the instalment appeared affordable and I was consistent with my payments. I then required another loan in April 2003 and citi financial were only to glad to offer me another loan.

loan paid to me £ 2529.19

refinancing from previous loan £ 1470.81

insurance £ 1946.60

arrangement fee £ 100.00

Total amount financed £ 6046.60

The APR 36.3% 48 monthly payments of £219.07

 

I still had not realised how much money I was paying out and again took out another loan offered by this company in November 2003. citi-financial advised me that if I kept taking loans and kept up my payment, this would improve my credit rating. I was paid £1352.00, refinance £4648.00, INSURANCE 2341.77, ARRANGEMENT FEE £100 @ AN APR OF 25.9% of 48 monthly payments of £268.36. Again on all occassions I was advised that I had to take insurance in order to get the loan. In order to try and pay off the loan quicker I began paying £300 a month.

WAKE UP CALL

I contacted citi financial this year for a settlement figure and was advised it was approx £6000.00. Shocked I was, so arranged a meeting with branch manager as I could not understand why I was still\owing so much. He informed that I had only paid £8000.00 since the account was opened. I explained how I was forced in to buyoing the insurance. He advised I write to the Complaints department, which I have done and was also requested to pay £30 for my statements I was sent a page of transactions for 2005/2006 and charges that did not make sense. I then requested copies of my agreement as I was shocked and could not beleive I agreed to pay so much insurance. I also sent a data protection letter request in June and only received the agreements. I am now self employed since 2004, and ofcourse dicovered this site. I have stopped my payments as I have requested the insurance be deducted. They have advised me that they will be passing the case on to debt collectors. anyone can you help with some advice pleeeese!

[Guest NATTIE]

My advice to anyone is:

1) do not stop paying a loan that you have taken out even with PPI, simply cancel the PPI

2) look at Bookworms thread on Insurance who suggests a company that can cover you for less

3) PPI is only really useful if you have assets, ie if you are single, no house, or kids then no insurance. If you do have assets then have some insurance that will cover you if the worst case scenario happens.

[paulwlton]

I've been picking the bones from the judgement and still getting different conclusions, i think we need someone who can summarise this and put it in laymans terms.

I think a mod should take a good look.

 

5 Items excluded from total charge for credit

(1) The amounts of the following items are not included in the total charge for credit in relation to an agreement

……

© any charge relating to an agreement which is an agreement to finance a transaction of a description referred to in paragraph (a) or (b) of section 11(1) of the Act, being a charge which would be payable if the transaction were for cash;

……

(j) a premium under a contract of insurance the making or maintenance of which is not required by the creditor as a condition of the making of the agreemt

[paulwlton]

I have just looked at a copy of my credit agreement it doesn't have a signature on it, the space is blank where it should have been signed, could i have signed something else?, i'm a bit puzzled, can't remember if i signed any other document. This is the only document i have.

[groovyglo]

paulwlton, you should write to the customr services requesting a copy of your original agreement, that might have your signature on it. I was sent all the copies of my agreements and all my signatures were right there glaring at me. I'm only having problems getting my statement of all the money I've paid over the years. Good luck. I've just written a letter to citi-financial using the template from Willob requesting my insurance be cancelled with immediate effect and refund on premiums paid. Fingers crossed!

[matd]

If one cancels PPI on a loan, can you get a refund of your premium if you weren't coerced into taking it? Do you have to prove that you were missold first?

[bp]

Well i called the Financial Ombudsman today, explained my situation and as far as they are concerned, i have grounds to complain. Contacted Abbey who told me i had get another loan in order to cancel the PPI I pointed out how irresponsible they were in suggesting this since i had just told them i was in great financial difficulty. The woman was very embarrassed. I'm waiting for phone call from their manager and will write my complaints letter in a couple of days time.

 

The worst part is that i don't actually need it since my work would pay me for a year if i was to fall ill and so would my Union.

[bp]

If anyone can advise I'd appreciate it.

 

Been contacted by my bank concerning my complaint on PPI, I think I've shot myself in the foot.

 

I do remember asking if i had to have the PPI and being told yes! Just not too sure when this was said to me.

 

Today, Abbey played me back the tape of my loan application. This is how the conversation goes at the PPI stage.

Abbey: "Now miss**** we do recommend payment protection,(and she goes on the explain its benefits"

 

Me: Right.

 

Abbey: "Your loan has been approved at*** per month and this is at a rate of **" we'll send you all the paperwork for you to read carefully and then sign. You have to sign box * and * of the payment protection otherwise it will delay your application".

 

After having applied in Jan and received the paperwork and sent them back, i was contacted by Abbey a few days later and told that i hadn't signed the PPI box and that's why there was a delay in my receiving the money so could i sign and return the paperwork asap.

 

Problem is i do know i was told i had to have the PPI I'm just not sure if it was during the 2nd phone which was not recorded or would a bank go as far as omitting a bit of the conversation. I mean at no point on that tape does Abbey directly ask me if i want PPI it just goes from recommendation to stating the payment amount per month nor am i told the difference between the loan with and without PPI. Its just weird.

 

Any advice? Should i just give up? They have said in order for me to get rid, i have to reapply adding an extra grand to the loan!

[reidnet]

Good News...

 

Lloyds TSB as a gesture of goodwill..lol Have agreed to refund my PPI policy amount plus interest.

 

they did make me a lower offer first, I told em to shove it..then faxed LBA to them..within ! hour they were on the phone and settled in full..

[groovyglo]

congratulations on the goodwill gesture from Lloyds bank. I received a reply fom citi-financial about my complaint basically informing that I signed a needs analysis form agreeing that the policies would be beneficial. however I signed the form but never read it or filled in because it states that I am not a smoker which I am and that I've never had any broken bones which I have. So there is no way I would have given misleading information on the policy. They conclude the letter by informing that there is no evidence to support my claim that insurance was mis-sold to me. They also state that the charge of £30 for a one year statement is justifiable.

 

They go on to say that my account is in arrears and have transferred it to the central office and credit management department and have updated my credit file. They suggest that if I feel that the outcome is unacceptable I should refer to the complaints Investigation Team. I'm not sure what do next, I still have not received the forms to cancel the ppi.

[Shadey1]

Does this also apply to PPI on credit cards?

 

I have a card with MBNA and tried to cancel it 3 years ago as the amount each month was huge. When i called them they told me I was not allowed to cancel it on a balance as large as £5k. Not knowing any better I took there word for it.

 

I had since cleared the card and recently did a balance transfer,only to find they put the PPI back on. I called them again and they said I had checked the box on my initial application in 2001(!). I told them to cancel it and they gave me some crap about their right to a 30 day cool off period hence I wil suffer one more months premium.

 

I am so angry 1. because this screws up the savings i have made on the balance transfer, and 2. I keep thinking about the monthly premium they said I could not cancel - 3 years at approx £70 per mth, Imagine the compound interest on that - no wonder it felt like I was never paying anything off. These companies are sooooo wrong!

[edinburghbeerbucket]

Hi folks,

 

New to this section!

 

I have what seems like a very weird situation! I took out a loan with Alliance & Leicester some time ago (June 05 I think) and at the time signed up for PPI.

 

When I called them in May this year to tell them about my change of address, I said "oh and I don't think I need the PPI now either". The guy on the end of the phone said "no problem, sir.. we will have to open a new account without the PPI included, but all it requires is one signature from you".

 

They posted out the new loan, with no PPI, I signed and returned it, job done!

 

Having looked at it now, it looks like they gave me a pro-rata refund on the PPI, which seems *almost* fair as I don't think I was pressurised into buying it or anything.

 

Anyone else had this experience?!

[Guest willowb]

http://www.consumeractiongroup.co.uk/forum/insurance-assurance-companies/31031-good-news-folks-ppi.html#post245077

 

Wxx

[BaldyBaldwin]

am watching all this with interest, have recently started the ball rolling with hbos over 2 loans i had taken out with them in 2003, i sent them a DPA request as i know that they levied some charges on the account when i fell behind with payments after suffering an accident.

 

when the DPA information arrived i noticed that a sum( a very large sum) had been the loan amount, i was very suprised as i had never been told that insurance was to be added or was needed or even what it was for!

 

have just wrote to HBOS to ask what this was insurance was for and intimating that i will be seeking a refund, although i have no idea were stand with this, and have recieved a standard blah, blah, blah letter saying i will get an answer in 30 days.

 

will keep you informed

[edinburghbeerbucket]

they levied some charges on the account when i fell behind with payments after suffering an accident.

 

Hey Kevinlufflum,

 

Might be worth checking out if the insurance would have covered your repayments (and possibly other repayments too!) when you had your accident? I'd do that before you try and get a refund on it! I'm fairly sure these claims can be back-dated, but there must be a time limit on it. Anyway, check it out!

 

Adam.

[claims32]

I took a loan out in 2002 with the HSBC which included PPI insurance. The HSBC were awrae of my pre-existing medical conditions as they also did my life insurance for the mortgage I held with them.

Unfortunately my condition worsened and I had to take time off work. HSBC's insurer declined to pay my claim forcing the loan into default.

I am now at the stage to issue against HSBC on the basis that the cover was missold to me.

I am inclined to issue for the total amount of loan, PPI and interest because I made it clear to my adviser that I would not have the loan without PPI because of my circumstances.

Any thoughts?

[paulwlton]

I've received confirmation that theires a full investigation concerning a mis-sold ppi policy which was taken out in 1998.

The claim is on the grounds that if i didn't take out the ppi then the loan would not be aproved, even though i had income protection insurance at the time through a company called paymentshield, my only concern is that the claim may be time barred.

Any thoughts.

[MONOLULU]

I took out a £5000 loan to be repayed over a 2year preriod at TSB. I told the manager that I would most likely pay it off early if I could, and he assured me that there would be no penalty charge if I did. he persuaded me to take out payment protection insurance. After about 6 months I was able to pay it off, which I did.The following week I got a bill for £1800 pounds for the insurance.

The next day I went to the bank waiting for it to open, as luck had it it was the manager who opened the door and greeted me with a cheery good morning. I

soon wiped the smile of his face with my return greeting ( nothing Physical ) he tried to explain that as the Insurance was seperate from the loan it was correct. He also told me that most managers do not tell customers that the insurance is sold as a single package and is not covered month by month as it appears to be with it being payed monthly alongside the loan. I then him told that my daughter inlaws sister was a TV producer and had contacts with the Watchdog progam ( well the first half is true ) and I would also be writing to the Sunday Times money pages. A day or two later he called me and said he had squared it with his boss and bill was reduced to £120. I think he lasted about another month as manager of that branch .

[Sem]

6 years ago i took out a "revolving account" with HFC/Beneficial Bank

 

i also seem to have signed up for credit protection insurance (i have no memory of this but its on my credit agreement )

 

anyway this summer i lost my job and i tried to claim on the insurance but they said because i work part time i wont be able to claim

 

 

now this thing I'm a student and I've ALWAYS worked part time

i remember when i first signed up for the loan the guy asked for my payslip and employment details and i would have said its only part time etc but yet he still signed me up for the insurance knowing i wont be able to claim on it anyway

 

what are my chances of getting this PPI refunded

I've calculated around £1000 has been taken over the last 6 years

should i threaten them with court action like with the charges?

are the financial ombudsman likely to help me

 

thanks

 

(ps please help this money will clear 80% of my debt to them so if i can get it back ill pay the rest and finally be rid of them forever)

[natheyabdn]

Hey Guys,

 

Can loans that are now repaid be claimed upon? The bank kept offering consolidation loans to me for my overdraft/ small personal loans and lumped on PPI.

 

Cheers,

 

Nathe

[paulwlton]

I've been reading up on the miss-selling of these policies lately, i have found that if the insurance was miss-sold due to a misrepresentation, this has to be proved on the balance of probabilities though, then the credit agreement may be unenforcable,.Types of misrepresentation

 

 

 

Fraudulent misrepresentation

 

 

This overlaps with the TortOfDeceit. The misrepresentation must be intentional and dishonest (DerryVPeek1888). Damages are not limited by remoteness (see CausationInNegligence). Rescission may be awarded.

 

Negligent misrepresentation

 

 

The misrepresentation was not intended to deceive, but nevertheless the defendant is in breach of a DutyOfCare to the claimant. Rescission may be awarded.

 

Innocent misrepresentation

 

The mispresentation was neither fraudulent nor negligent. In general, damages are not available, but rescission may be awarded.

misrepresentation act 1967,

[reidnet]

Thanks Paul,

some interesting reading there, which I may use in a case I have going on at the moment re mis sold PPI..

 

Ian

[breadline]

I would urge anyone with a bank account and loans to send in a DPA wether applying for charges or not, as only through the information i recieved have i discovered with lloyds

 

1 loan that should be insured and has never had a policy made against it, yet i have been paying for it.

1 Loan accepted without insurance has had insurance applied, ( even the monthly payments were higher than agreed and muggins here didnt notice).

 

Lloyds have failed to supply contracts for both loans since March.

I have advised i will no longer pay ( i had no choice they ignore everything i send them) untill the contracts are provided.

 

While i was making inquiries as to the contracts i was advised to call the loans department , then the insurance department and no one wanted to take responsibility.

So far as im concerned the office that demands the payment has the responsibility of completeing my inquiry.

 

There are many mistakes in my accounts and i have learnt you have to gain all information held to look after your own affairs.

 

ive heard of over selling but selling and not supplying is a new one i think:rolleyes: :?

 

BL:)

[Guest willowb]

Can someone please move this thread into the new 'PPI' section of the forum please? There's lots of useful stuff in here concerning PPI.

 

Wxx

[Guest willowb]

Thanks hun:)

 

Wxx