kennythecelt V Central Capital Ltd PPI Reclaim (other names Central Trust PLC/ Debtbuster Loans)

[kennythecelt]

Round 2 of PPI reclaim.

 

This time it will not be so easy, having read threads on CAG, before posting this. However, I hope I can pick up on some of the issues others had difficulty with, and hopefully, give others who have had PPI policies with these companies a helping hand.

 

Fortunately, I have a lot of information to go on, as a result of SAR requests related to past bank charge reclaims.

 

Story so far:

 

Central Trust PLC arranged a joint secured loan during December 2000. They arranged this loan with Endeavour Personal Finance Ltd, an HSBC company, based iat Beneficial House, Easthampstead Rd, Bracknell, RG12 1NS.

 

Loan Details

 

Advance, £14,000

PPI single payment policy £3640

 

Total £17,640

 

APR 12.9%

 

 

I had pursued Endeavour regarding the mis-selling of PPI and they said that Central Capital Ltd are responsible for the PPI sale and any reclaim, which I kind of accept.

 

I have the Credit agreement- an actual original- which is a first for me.

 

I have a record of all transactions on the account and the account no which is settled in full and never defaulted- no issues there. The account settled during mid 2003.

 

The following letter has today been drafted and sent to Central Capital Ltd, based on my letter in another PPI thread, kennythecelt V Bank of Scotland Credit Care Bronze:

 

 

Central Capital Ltd xxxxxx 2010

The Complaints Department

Melton House

65-67 Clarendon Rd

Watford

Herts

WD17 1BL

 

 

 

 

Dear Sir/Madam,

 

Mr and Mrs kennythecelt

 

Present Address for correspondence:

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Previous Address of Account:

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Your group of companies ie Central Trust PLC and Debtbuster Loans, acted as a credit broker for ourselves and arranged a secured loan with Endeavour Personal Finance.

 

The loan and account details are as follows:

 

Loan amount: £14,000

Single sum payment protection insurance policy: £3,640,

Total loan amount: £17,640

APR: 12.9%

Repayment period: 120 months

Advance date: xxxxxxx

Settlement date: xxxxxxxx

Account No: xxxxxxxxxxxxxxxxxxxxxxxxx

 

A copy of the credit agreement with Endeavour Personal Finance is attached for your information.

 

I also attach a copy of the historical transactions on the account with Endeavour Personal Finance, for your information, which I have received from them.

 

I believe I have been mis-sold a payment protection insurance policy (PPI), by you and I would like to request a full refund of my premiums, plus interest that I paid on that sum ie 12.9% plus compensatory interest at 8%. This loan has since been repaid in full by me, before the due settlement date.

 

I have been in contact with Endeavour Personal Finance regarding the mis-selling of PPI and they have referred me to you.

 

I do not believe being forced to buy this policy as part of the loan was a fair and reasonable obligation upon me as I did not need this insurance and I did not want it.

 

Please note that the reason you arranged this loan on our behalf was to consolidate our finances. This means that you would be aware that I had financial difficulties at the time and could therefore not afford the luxury of a worthless Payment Protection Insurance policy paid up front with interest at 12.9% added for the privilege.

 

The policy was mis-sold to me because:

 

• It was sold as a condition of the loan being made available to me.

• I had pre existing medical conditions which would have meant that I would not have been able to make a claim for those conditions. In effect, the policy was useless to me.

• I did not see the policy in advance of signing the agreement to make myself aware of its terms and conditions, as you did not make me aware of them. In fact, I don't recollect ever seeing a full policy document and have no idea who you arranged this policy with- perhaps you can supply a copy of the terms and conditions of the policy document.

• The policy was a lump sum prepaid policy and I had to pay you interest for that policy for the period of the loan. This was not explained to me. I was also not given the cheaper option of a monthly PPI policy, which would not have accrued interest over the duration of the policy and which would have been easier to cancel. It is not easy to cancel a prepaid policy as it is paid up front.

The FSA has recommended the end of single payment PPI policies due to the number of instances of mis-selling.

• The monthly payments to Endeavour Personal Finance would have been considerably less and more manageable to me, if I was not sold the policy and related interest and instead sold a monthly policy.

• I was not asked by you if I had other insurances/ policies or financial measures in place which could provide me with cover if I needed it or the means to repay the loan amount.

• I was not offered a choice of market placed products, but directed to a policy which you provided me with. Presumably, you had a business interest for doing so and I would like to know what this was please.

• You did not take steps to ensure that the policy was in my/ our best interests. You did not make a comparison of products for my individual circumstances.

• You did not inform me that you would make commission from the sale of the policy to me or what the commission was. Can you please tell me commission you received.

• At the time of entering into the agreement with you, I was employed by xxxxxxxxxx Council as was my wife. You were aware of these facts as you sought references to process the loan and PPI. As we were employed in Local Authorities, in the event that we had an illness during the period of the loan and PPI policy, both my wife and I would have been provided with sickness pay for a 12 month period (6 months at full pay) which was better than the policy you provided me with. We also had superannuation scheme membership.

• At the time of the policy being sold to me, we were at no risk of redundancy as we were employed in local government. The only type of redundancy would have been voluntary and the terms of voluntary redundancy would have been very favourable and enough to repay the loan. Consequently the PPI policy you sold me as a condition of the loan was worthless.

• I believe that you have recently reviewed your policy on sales of PPI due to recommendations from the FSA due to complaints about circumstances such as mine.

• These policies were recommended to clients such as me by your sales staff who were on commission as part of their salary and conditions of service and I was not made aware of this by you or the salesperson, who I assumed to be a member of staff not motivated by sales but with my best interest at heart, as a consumer.

 

I now respectfully ask that you investigate the selling of the policy to me and make arrangements for full repayment of the policy amount and all interest on the policy (at fixed rate of 12.9%) that I have paid to you until the loan was settled. In addition to that sum, I require interest at 8% on the combined sum above, from the date of the loan agreement and PPI until you settle this claim with me.

 

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman Service and I am prepared to seek legal redress, for which I would claim costs and time in full.

 

I appreciate that you will claim a lack of available data, but, I have supplied these to you, to help you make your enquiries.

 

I expect this issue to be resolved within 14 days please.

 

 

Yours sincerely

 

 

 

Mr and Mrs kennythecelt

Edited September 5, 2010 by kennythecelt

[kennythecelt]

This post will be developed to calculate the potential refund, and I will be grateful for help. I will link to the interest calculator.

 

A refund of PPI amounting to £700 has been made to me by Endeavour for early settlement, so I can't claim for that.

 

The PPI amount to be reclaimed is £2936.

[kennythecelt]

Issues I will encounter are:

 

 

 

• PPI claim dates from 2000, way to old- but we know better.
  
• Central Capital Ltd were not regulated by FSA at time. They appear to have been self regulated by FISA- Financial Industry Standards Association.
  
• Lack of paperwork, files, telephone recordings etc
  I was aware of policy and implications and entered into it willingly.
  
• A blank no and refusal to answer further correspondence.
  

[patrickq1]

this is the new and latest difinitive guide kenny to all PPI Claims

patrickq1

http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf

[kennythecelt]

Many thanks Patrick!!!!!!!!!

[kennythecelt]

Following Patricks advice, I am now ripping up my letter and will use the standardised claim process and forms which the Financial Ombudsman Service have produced and made available

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html. That seems like an incredibly straightforward process.

[patrickq1]

best way they now have to comply, ime sending one to HFC who have tried to get me to fill in a form that is self defeating by that i mean it ask's you to answer trick questions that mean different things to different people ...

so i wrote to the FSA and FOS and said as much in my letter to them that i did not like their reply could they give me a definitive answer, and that is what i got the link above lol