BANKS are giving incorrect advice on PPI

[alanalana]

Some information for PPI reclaimers.

 

When you submit a claim for repayment of mis-sold PPI the financial institutions are returning letters to put you off continuing your claims.

 

They are using such excuses as:

 

The terms and conditions allowed you 30 days to cancel.

You signed the relevant box agreeing to the PPI.

We are not regulated by the Financial Services Authority so you will have to contact General Insurance Standards Council (GISC) or the Financing and Leasing Authority (FLA).

 

They will also tell you you cannot claim back beyond six years as they do not keep records beyond six years.

 

All of this is INCORRECT. You must put them to strict proof that the records do not exist if they state they do not. This means you must insist they produce evidence of destruction of the documents certified by a registered data controller within their organisation as is required under the Civil Evidence Act 1995. This acts requires banks and other institutions to keep auditable records on documentation they hold and includes certification of destruction.

 

Please do not accept what the banks say in response to your PPI claims if you are unsure then submit a formal complaint to the Financial Ombudsman Service and let them make a formal adjudication on the issue of mis-selling of PPI.

 

Additionally be aware that any loans that fall into arrears and end up as debt management plans DMPs such as CCCS etc. When a debt enters into a DMP the financial institution usually closes the account, stops the interest and accepts a reduced monthly payment until the debt is paid off.

 

 

BE AWARE WHEN THE ACCOUNT IS CLOSED AND YOU START TO PAY A MINIMUM MONTHLY PAYMENT. IT IS UNLIKELY THAT ANY PPI ON THE OUTSTANDING AMOUNT WILL HAVE BEEN REFUNDED. SO EVEN THOUGH THE ACCOUNT IS CLOSED AND YOU WILL NO LONGER HAVE PPI COVER YOU WILL STILL BE PAYING FOR IT.

 

IF YOU ARE ON A DEBT MANAGEMENT PLAN YOU SHOULD STILL SEEK TO CLAIM BACK MIS-SOLD PPI ON THE ORIGINAL LOAN AND ALSO CONTACT YOU DEBT MANAGMENT TEAM TO TELL THEM THIS IS WHAT YOU ARE DOING.

 

I HAVE JUST MANAGED TO CLAIM A £4K PLUS REFUND ON A DMP SO GO FOR IT.

 

aa

Edited September 21, 2009 by alanalana
text added

[pompeyfaith]

Alan,

 

Very good advice and I urge all claimers to follow this though.

 

The above unfortunately is happening far too often and id say 9 and 10 first responses get the above fob off.

 

On another note I would also seriously consider Restitutionary damages on claims going though the courts.

 

Bankfodder has started a good thread on this here:

 

http://www.consumeractiongroup.co.uk/forum/lloyds-bank/220778-ombudsmans-award-8-top.html

 

Regards

 

PF

[bach]

Thanks for this information very helpfull, having been in correspondance since October 2006 claiming back PPI, from G E ,they told me in another letter March 2009, my files had been securley destroyed.

 

I have actually last Monday put my clam through the Courts so havae to think now about Restitutionary damages

 

Thanks for this I'm sure it will encourage us all to continue further.

 

Bach

[maybelline]

I want to recalim my PPI from halifax, bundled in with a loan, but pre existing medical cond means I would not qualify, I do not appear to have any insuranc document (?) to say what I am covered for etc either.

[alanalana]

I want to recalim my PPI from halifax, bundled in with a loan, but pre existing medical cond means I would not qualify, I do not appear to have any insuranc document (?) to say what I am covered for etc either.

 

 

Maybelline you should start your own definitive thread that belongs to you alone then you can post and get the appropriate responses to your claim.

 

http://www.consumeractiongroup.co.uk/forum/newthread.php?do=newthread&f=111

 

Use this link to start your own thread on your claim against halifax and that way you keep tabs on your own case and this will enable you to keep tabs on the Progress of your claim.

 

aa

[dx100uk]

I want to recalim my PPI from halifax, bundled in with a loan, but pre existing medical cond means I would not qualify, I do not appear to have any insuranc document (?) to say what I am covered for etc either.

 

cant see why not.

your first step would prob be to SAR halifax and see what you get back.

 

if you look at the other stickies at the top of this forum

i'd follow the notes for claimants one.

 

i'd also start your own thread

 

dx

[pompeyfaith]

I HAVE JUST MANAGED TO CLAIM A £4K PLUS REFUND ON A DMP SO GO FOR IT.

 

Alan absolutely fantastic this question is one that has been asked many times over and now you post a good answer Oh and Well Done mate

 

PF

[alanalana]

Very true.

 

Some folks are taken aback at the massive costs attached to loans and end up not being able to pay the monthly premiums. Well news for anyone that is in this position. If you happen to be on a debt management plan whereby your interest premiums have been frozen but you are tied into paying all outstanding debt over a set period of years.

 

The good news is you can still claim back for mis-sold Payment Protection Insurance for this even though you may be on a debt management Plan this means you can sort out your finances and even claim back PPI if you have a case for mis-selling.

 

Keep up with reclaiming the lot

 

aa

[alanalana]

Alan absolutely fantastic this question is one that has been asked many times over and now you post a good answer Oh and Well Done mate

 

PF

 

Spread the news :grin:

 

If you are tied up with a Debt Management Plan you can still claim back PPI if you have a valid reason to claim mis-selling.

 

Go for it

 

aa

[pompeyfaith]

I am of the belief this also applies on debts that have been brought and if there is an NOA then the company that brought the debt is liable

[muzza484]

Quick question,and feel free to point me elsewhere,,,, I have a loan with BOS, and have PPI, which I have just cancelled.... They are going to rekey the loan with the insurance taken off, give me a new loan (without credit search and charges) BUT INSIST on giving me a 3 month payment "holiday",effectively charging me extra interest, they say they CANNOT remove the deferment, Any Ideas anyone??

[alanalana]

Quick question,and feel free to point me elsewhere,,,, I have a loan with BOS, and have PPI, which I have just cancelled.... They are going to rekey the loan with the insurance taken off, give me a new loan (without credit search and charges) BUT INSIST on giving me a 3 month payment "holiday",effectively charging me extra interest, they say they CANNOT remove the deferment, Any Ideas anyone??

 

Yes tell them to forget the 3 month holiday just tell them to cancel the PPI repay the payments made including the contractual interest and the 8% statutory interest reduce the payments to reflect the removal of PPI in full and keep the reduced payments at that level for the remainder of the existing term. DO NOT sign up to any new agreement as it could be detrimental.

 

The RBS cancelled my PPI but only reduced the monthly payment by a few pounds after the FOS became involved the payments reduced even further and my PPI refund was £10k +

 

be very wary of what the banks will try and do to keep you paying as much as possible.

 

aa

[landy_alert]

Hi everyone:)

 

I know this thread is about banks giving incorrect information, but thought this might be of interest - another Cagger has an ongoing claim for mis-sold PPI with MBNA which has just been upheld by the FOS.

 

The claim she put in included contractual interest plus 8% as recommended here on Cag and of course the FOS acceptance form (as I recently found out with our MBNA PPI claim) doesn't allow for giving an idea of how much exactly the refund will be.

 

The Cagger in question called the FOS and spoke to the adjudicator dealing with her complaint. She specifically asked about contractual interest and the adjudicator told her that -

 

a) It's unlikely she would get it

 

b) The FOS only stipulate that the company pays you 8% statutory interest as per court regulations

 

Now I don't know whether this is a misunderstanding as I was under the assumption that you were entitled to interest at the contractual rate because this is the rate you have been charged on the PPI premiums:confused:

 

If not and the FOS are not going to insist on companies refunding at the contractual rate an awful lot of people are going to be disappointed - we have had a couple of offers lately which have only included 8% interest, one of which we have passed back to the FOS - no response to us on this as yet though............

 

Just thought I should share this and wasn't sure where to put it!

 

Regards,

 

Landy x

[pompeyfaith]

But surely if the FOS stipulate that you must be put back in the position you would have been in had you not had the PPI this would include the compounded interest because that is what you have paid.

 

So it stands to reason rolling back to before you had the PPI must include the interest paid on those payments.

 

Think I will write to the FOS to clarify this matter.

 

PF

[landy_alert]

But surely if the FOS stipulate that you must be put back in the position you would have been in had you not had the PPI this would include the compounded interest because that is what you have paid.

 

So it stands to reason rolling back to before you had the PPI must include the interest paid on those payments.

 

Think I will write to the FOS to clarify this matter.

 

PF

 

Exactly PF - that's what I don't understand - but this was straight from the horse's (adjudicator's) mouth:confused:

[fedup74]

I have also been told by the FOS adjudicator that they offer just 8% interest on the premiums paid:confused:

[pompeyfaith]

I have also been told by the FOS adjudicator that they offer just 8% interest on the premiums paid:confused:

 

Right they are confusing you here if they said premiums paid then this would include the compounded interest because what happens is this:

 

The banks add the PPI POLICY to the Loan this PPI POLICY then attracts interest at what ever rate that is then divided by how many months you are paying over to give the monthly premium to pay.

 

EXAMPLE: £100.00 POLICY taken out on the 1st Jan 2003 for 60 mths

 

PPI POLICY COST £1000.00

INTEREST AT 10%£ 657.19

 

TOTAL PAYABLE £1657.19 DIVIDE BY 60 = £27.62

 

So £27.62 is the monthly premium to pay and this includes the compounded interest you have paid and the FOS will add 8% simple to that.

 

Regards

 

PF

[pompeyfaith]

As i say though i will be writing to the FOS to clarify this as it is a question that pops up frequently.

 

PF

[landy_alert]

Right they are confusing you here if they said premiums paid then this would include the compounded interest because what happens is this:

 

The banks add the PPI POLICY to the Loan this PPI POLICY then attracts interest at what ever rate that is then divided by how many months you are paying over to give the monthly premium to pay.

 

EXAMPLE: £100.00 POLICY taken out on the 1st Jan 2003 for 60 mths

 

PPI POLICY COST £1000.00

INTEREST AT 10%£ 657.19

 

TOTAL PAYABLE £1657.19 DIVIDE BY 60 = £27.62

 

So £27.62 is the monthly premium to pay and this includes the compounded interest you have paid and the FOS will add 8% simple to that.

 

Regards

 

PF

 

Hi PF:)

 

So do you think that the other Cagger I originally mentioned was also confused by what she was told by her FOS adjudicator - possibly he didn't explain it very well to her and we have been getting our knickers in a twist over nothing here?

 

Not that I'm saying you wear knickers btw:D

 

Regards,

 

Landy x

[landy_alert]

Sorry PF, my last post crossed with yours!

[pompeyfaith]

Possibly,but i would have to look at there figures to ascertain if this is the case can you ask this person to PM me with a link to there thread.

 

Regards

 

PF

[landy_alert]

Will do PF:)

[muzza484]

Spoke to the bank today.... several times..... HBOS will not ( cannot) cancel the "holiday" period of 3 months for any loan, inc NEW ones! a point worth mentioning is that I willingly took out the insurance, but have decided that I no longer want it.

[alanalana]

You should still claim it back do not accept their explanations. You can retrieve your cash via the Financial Ombudsman Service.

[means2anend]

subbing!!!