PPI - Some notes for Claimants - Frequently Asked Questions & Discussion thread

[paulwlton]

Hello Paul

 

Nice to see you over here, I can't recall anybody asking that question and I am not 100% sure. I would image the answer is yes, but in my experience I found one company did automatically cancelled the ppi on the default of the loan and took the rebate for themselves. Another ran for a year after they defaulted the loan, till I found out and then I insisted It was cancelled.

 

Did you ever receive any terms and conditions relating to the ppi. I never did as many others never did.

 

Are you looking into reclaiming back your ppi? If so good luck.

 

Like most people i was mis-sold ppi on my personal loan the loan ran for five months untill it was subjected to a CCJ. My argument is that on default the insurance should have been automatically cancelled or there should have been terms in the insurance that allowed for me to cancell.

 

The creditor will not reduce the judgment debt and in their latest correspondance i was told to challenge the judgment.

 

I have started legal action and attended an application hearing on Wendsday the case is a lot more complex than just the ppi issue.

 

If anyone has any relevant info it would be of great help to my case.

 

Regards Paul

[electrode101]

I'm back and am gonna be biting yes car credit where it hurts. I left my campaign back in March due to lack of time.

 

has anybody to date yet successfully claimed back PPI from those back you into a corner and make you look at how down and out you are but we can help you merchant 2 bit company commonly known as yes car credit

[Hopeful1]

I've been asked to post up some info. My worry is i cannot remember where i sourced the info from, whether it was from this site or Martin Lewis's!! I suspect it's the latter. I hope no-one will be upset by me posting it up. Any problems and i will edit it.

 

Here goes....

 

 

PAYMENT PROTECTION INSURANCE

Before reclaiming or cancelling PPI you should have a look at the following Notes and see what type of PPI you actually have. Always consider all the facts and figures before starting a claim.. Whatever you do Do Not Just Jump In without researching your own policy, and don’t be afraid to ask for help / advice on the forums on CAG.

 

There are basically 2 types of Payment protection Insurance policies.

 

1) Monthly paid premium (as used by most of the credit card companies)

These policies should not be a big problem to cancel; normally they will cancel this type of policy if you write to them or Phone them. Of course if you consider that you have been mis sold this type of policy you can of course try and reclaim all the premiums that have been made, plus claim the interest on each payment at the Contractual Interest Rate.

 

2) Single Premium Policy (these are the biggest rip off ones) These policies are

Paid for in full to the insurance company at the start of the policy. Most loan

Companies will finance the full cost of the policy by adding the cost onto your loan. What they do not tell you is that you will also be paying interest on that amount at the loan interest rate for the full term of the loan.

 

Example 1. PPI Cost £3300 Interest Rate 7.9%APR Interest payable over the 5 year loan = £1300 Actual cost of PPI cover £ 4600.00

 

Example 2 PPI Cost £3300 Interest Rate 7.9%APR Interest payable over the 15 year loan = £3913.00 Actual Cost of 5yr PPI Cover £ 7213.00

 

As some loans have variable APR the costs used in the above examples could be in fact a lot higher.

 

Most of this type of Policy will cover you for 60 Months (5yrs) so beware if you have taken out one of these policies and have a loan which runs over the 5 year period. As in example 2 you would require a further 2 * 5yr PPI policies to cover the full loan period.

 

I did one calculation on an original loan of £17,000.00 , when the PPI was added and calculated to cover the 15yr period; with an APR at 7.9% fixed the actual cost to repay the loan was calculated at almost £55,000.00.

 

Cancelling a single payment Policy, This can be a bit trickier than a standard monthly paid policy. These policies will offer a very small percentage of the premium should you just cancel it. An example of this is shown below. Their answer to this part is normally that the insurance premium pays more in the early stages of the loan as there is higher risk. (Yeah - higher risk to the lender and not the Customer)

 

£3300 policy which had been running for 3yrs, Refund of £97.00 if cancelled.

 

Some companies will state that the only way that you can cancel one of these policies is to refinance and settle the complete loan agreement with a new loan without PPI on the new loan. Some of the lenders will also try and fob you off with excuses like, you may not get a new loan at the same low %APR without PPI. Some will also state that you may not in fact be able to obtain a new loan from them at all; this of course is all scare tactics to try and make you change your mind about cancelling the loan etc. If your credit rating is not good then they will use this against you too.

 

In my own case I managed to obtain a new loan from another provider at a far better %APR (5.8%) rate without PPI, though they did really try and sell their PPI..lol. I also took out a stand alone PPI policy from an Independent provider at well under a tenth of the cost I was quoted from the new Lender. Personally I have nothing against PPI Insurance, in fact I think it is a good thing as long as it sold properly and not at an extortionate rate like it is by the major High Street Banks and Loan Companies.

 

3) Mis Sold Policy The mis selling of these policies is a major concern not just for

Consumer but in fact the FSA and the OFT are looking into this whole

matter.

 

Have you been Mis Sold PPI. (Some standard Conditions for PPI)

 

a) Payment Protection Insurance cannot be made a condition of obtaining a loan. (This is the most common reason for mis selling)

b) You are permanently resident within the United Kingdom

c) You are Over 18 and Under 65 at the commencement of your loan, and you will not reach the age of 70 during the insured term.

d) You are in Full time employment – Some policies define Full time employment as being working Over 16 Hours per week and that you have been in full time employment for at least 6 Months prior to the start date of the policy.

e) Pre Existing Medical Conditions may also Invalidate your Policy

f) Some policies may cover if you are self employed.. Check your T & C first though.

 

** Latest Additions to be added to above (thanks Todge)**

 

1 You were not in work or self employed at the time of sale

 

2 You were told that you had to take the PPI out at the same time as the loan or not at all

 

3 You were not asked whether you had any other insurance which would cover the loan

 

4 You were not told you could buy PPI elsewhere to cover the loan

 

5 You were sold a policy which had age restrictions which you fell outside of

 

6 You were led to believe that Payment Protection Insurance was compulsory

 

7 You were told that you would stand more chance of getting the loan if you took the Payment Protection Insurance

 

8 It was not explained to you that there were certain exclusions within the policy that could affect you

 

9 You were pressured into buying the PPI

 

10 You paid upfront for the PPI but it was not explained that there were some PPI policies where you could pay monthly

 

11 Your PPI was an upfront premium and you repaid the loan early and received no refund

 

12 You increased your loan and the PPI was increased automatically

 

13 The Terms & Conditions of the small print were not fully explained to you

 

You should in the first instance read through the full terms and conditions of your Payment Protection Insurance Policy. If you do not have these I would personally advise you to contact the Insurer and request these. If you do have to contact the Insurer for a copy of the terms and conditions you will need to know the date that you signed up for the policy, Request a copy of the terms and conditions relating to the policy that they had in place on that date.

 

I would personally always deal with complaints regarding PPI by way of letter, unless you have the ability to record any telephone conversations regarding the complaint.

Obviously should you have to take the complaint to court, the more evidence you have in writing the better.

 

Some Interesting Facts Regarding PPI.

 

On some Single premium PPI policies the actual cost for the insurance can be a low as 10% of the cost charged by the lender …That’s a whopping 90% straight profit for the lender.. Plus of course the extra Interest that they will make.

 

Out of all the types of Insurances Policies available ( Car, Home etc) PPI has the lowest percentage of payout in claims, Making PPI the most profitable Insurance Policy currently on the market.

 

Payment Protection Insurance has the highest rate of claims for Mis Selling than any other Insurance policy available.

 

Most policies will only pay out for 12 Months maximum in any 1 claim.

 

 

I hope this has helped, If you have any queries please do not be afraid to ask for help or advise in the forum.

 

If you find any Interesting information relating to PPI I would be grateful if you could pass it on to me, I’m on a bit of a Mission with PPI..lol

 

Additions to Post 22/3/07..

 

Reclaim your PPI premiums

 

There's no need to pay someone a fee to pursue your mis-selling claim. By following our guide - and using our letter template - you can right the wrongs committed by your bank or lender. You will find the downloadable letters at the bottom of this page.

Here we explain how to decide whether you have a case for reclaiming your premiums, and how to go about it:

The background

Payment protection insurance generates billions of pounds for banks and building societies and is widely recognised as being routinely mis-sold. The policies are designed to repay a particular debt if you find yourself out of work. We know of many instances when borrowers have been forced to buy an expensive policy as a condition of being offered a loan.

{I:1}

Do you have a mis-selling claim?

• Being forced to buy a PPI policy in conjunction with a loan does not breach FSA guidelines. But the FSA says that fact does not exclude borrowers from making a mis-selling complaint to the Financial Ombudsman, who assesses whether the way the policy was sold was fair and reasonable.

Banks and lenders who subscribe to the Banking Code agree they will not force customers to also buy their payment protection insurance, but they can insist on them having some form of PPI.

We have heard a litany of complaints from borrowers who say unscrupulous salespeople told them they would not get a loan unless they signed up to the lender's own protection insurance. If this has happened to you, you should pursue the bank through its usual complaints process. If you have no success, the next step is to complain the Financial Ombudsman.

• You may also have a case for mis-selling if you have been sold a policy while you are self-employed, unemployed or retired – all of which make PPI void. PPI policies are valid only for people who are employed by someone else and the lender or insurer should have checked your employment status when they sold the policy.

• Most policies do not cover you for loss of income caused by a wide range of illnesses or ailments, including mental illness and back trouble, which keep thousands of people off work each year. A lender or insurer should warn you that illnesses like these, and other pre-existing conditions that might keep you off work, will not be covered.

• If a lender sells you a PPI policy with a card or loan, it significantly increases the interest rate you will be paying. Lenders are obliged to advertise the total APR so you know exactly how much your monthly repayments – including insurance – will be. If they haven't, you can pursue them for mis-selling.

The lender should also have explained to you the full cost of the policy, and how your monthly repayments without insurance would be affected by adding insurance to the loan or credit card agreement.

If your lender did not do any of these things, you may have a claim for mis-selling.

Additionally, you may have a claim if you have tried to cancel your PPI policy, and have been refused, or if you have cancelled the policy part-way through the loan period and received a smaller reduction in monthly payments than you were expecting.

 

Template Letter 1

[Your address]

The Complaints Department

[Lender’s address]

[Date]

 

Dear Sir/Madam,

 

Ref: [Your PPI policy number]

 

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

 

I took out a £xxx loan/credit card at your […. Branch] on [date] and also bought a payment protection policy which would cost me an extra £xxx over the life of the loan. [The name of the salesperson who sold me the policy is ...] The total amount of my premiums plus interest is £ xxxx.

 

I am [self-employed/work as a contractor/unemployed/retired] and therefore will not be eligible for any payments from the PPI if I find myself unable to meet my debt repayments.

 

Possible additional paragraphs – include the one which applies

 

[Your salesperson knew this at the time of sale but did not point out to me that this would make the insurance policy useless to me.]

 

or

 

[Your salesperson did not check my personal circumstances at the time of sale, which they are under obligation to do. If they had done, they would have realised that a PPI policy was useless to me.]

 

Insurers are under an obligation to ensure that the policy they are selling is appropriate to that customer and clearly, as my employment situation means I am unable to claim on the policy, you have not fulfilled this requirement.

 

I am requesting a full refund of all my insurance payments, plus interest, which total [£ xxx].

 

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.

 

Yours sincerely

 

 

[Your signature]

 

 

 

Template Letter 2

[Your address]

The Complaints Department

[Lender’s address]

[Date]

 

Dear Sir/Madam,

 

Ref – policy number

 

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

 

I took out a £xxx loan/credit card at your [branch name] branch on [date] and also bought a payment protection policy which would cost me an extra £xxx over the life of the loan. [The name of the salesperson who sold me the policy is …] The total amount of my premiums plus interest is £ xxxx.

 

When I took out the loan, I was told that my application would be refused if I did not also buy a PPI policy. The Financial Services Authority’s advice to consumers is that, while it does not breach FSA guidelines, a borrower should not be refused a loan if they choose not to buy an insurance policy.

 

Possible additional paragraphs – include any which apply to you

 

[i also told your salesperson that I had adequate insurance cover through a separate income protection policy.]

 

[i said I did not need the PPI as my employer provides a generous illness and redundancy package.]

 

[You are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in the quoted interest rate, which you did not do.]

 

[in forcing me to buy this policy, you have also breached paragraph 8.6 of the Banking Code, to which you are a signatory.]

 

I do not believe being forced to buy this policy as part of the loan was a fair and reasonable obligation as I did not need this insurance and said at the time of taking the loan that I did not want it.

 

I am requesting a full refund of all my insurance payments, plus interest, which total [£ xxx].

 

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.

 

Yours faithfully,

[reidnet]

I think you will find you got the Information from My First Post on this thread..

 

I am working on some other information that will be added to the main post in the next week or so, Just need to do a bit more digging to make sure the facts are correct..

 

Ian

[Hopeful1]

Sorry Ian!! It just shows what good info it is

[hellhasnofury]

Sorry Ian!! It just shows what good info it is

 

 

:shock:

[reidnet]

No Problem Hopeful1, and thanks for the Click..

 

I am now working on the info that will be required by the poor sods that The FOS will not help. Hopefully I will get that info posted up soon, but Im also working on another couple of things at the momment too.. .

 

Hellhasnofurry, did you get the dozen Aberdeen Rowies I posted you, or did the postie scoff them..lol

 

Ian

[hellhasnofury]

No Problem Hopeful1, and thanks for the Click..

 

I am now working on the info that will be required by the poor sods that The FOS will not help. Hopefully I will get that info posted up soon, but Im also working on another couple of things at the momment too.. .

 

Hellhasnofurry, did you get the dozen Aberdeen Rowies I posted you, or did the postie scoff them..lol

 

Ian

 

How did you know I would be looking at this post. Jesus, you are the MASTA. you know everything, even my address.

 

Did you know, that I am 5' 6in tall, 48" bust, 24"waist, 36"hips, long blonde hair and the face of an angel.

 

Your wrong Ian, I was feed Aberdeen Rowies as a kid, so there is no hope there then.

 

You are so cruel and heartless. You can eat them any time of the day, but I can't:(

 

You best get working on the ppi info, especially the poc, cause I have a feeling I will need one soon:eek:

 

Take care you SFFWine:p

[Hopeful1]

Did you know, that I am 5' 6in tall, 48" bust, 24"waist, 36"hips, long blonde hair and the face of an angel.

 

HHNF - how are the men going to concentrate on their compound and contractual interest when you're throwing stats like that into the pot?!!

 

I think we might need a whole new forum for this topic!!

[freds dad]

Very Interesting stuff, thank you.

I have paid over £1,000 in PPI charges on my Sainsburys Visa card in a little over 2 1/2 years! I have written to them claiming a mis-sell on the grounds that I was self employed but they have told me that my claim is with the insurance company and not them! I cannot understand this as it was their staff that sold the card and PPI to me and not the insurance companies. Do you or any others have advice for me. Many thanks in anticipation of any help at all.

[hellhasnofury]

Very Interesting stuff, thank you.

I have paid over £1,000 in PPI charges on my Sainsburys Visa card in a little over 2 1/2 years! I have written to them claiming a mis-sell on the grounds that I was self employed but they have told me that my claim is with the insurance company and not them! I cannot understand this as it was their staff that sold the card and PPI to me and not the insurance companies. Do you or any others have advice for me. Many thanks in anticipation of any help at all.

 

Hello Freds dad,

 

Whoever sold or applied the ppi is the company that you reclaim it back from and don't let them tell you otherwise.

[shirleyc]

oops

[The D.A]

I would reccomend anyone reading this thread to follow the link to the petition set up to raise awareness of the overpriced selling on PPi, with loan agreements.

 

Petition to: Prohibit loan companies from selling payment protection insurance with credit agreements.

 

spread the word, too many perople are being steered towards taking overproced ppi, in spite of the FSA's efforts to regulate the industry

[loukim]

Hi there

 

Well done ,i have just had my case won with Blackhorse by using the FOS (still waiting for settlement figure)

 

I had claims for 2 Mis-sold PPI's

First PPi was from aloan paid back in full 2005

second PPi for a loan still running

 

With the PPi that is fully paid the FOS have said they are to send a cheque for full settlement for full premium paid including any interest and charges, add interest on each of the additional payments made for this at the rate of 8% per annum simple from the date each payment was made to the day of compensation.

 

With PPI on loan that is still running, they said re-arrange the loan by writing off all amount that remain outstanding in respect of borrowing for the PPI premium, including any interest and charges, so that in future the number and level of outstanding repayments against the loan are the same as would now have applied had we not taken the original loan sum without PPI cover. All premium paid to be paid back with 8% from the day of each payment to the day of compensation all to be received by cheque.

 

I hope this is of help to you, i did find the FOS took no time at all and was very helpfull, my case started on 16th October 07 and Blackhorse agreed to Mis-selling on the 2nd January 08. I guess each case time is different as no case id the same .

 

T

Need any help just give me a bump Good Luck

[cowboy557]

Took out loan with HFC in 2002 settled it in 2006.was told i must have ppi with it,have no docments to refer to will it still be possible to make a claim for a refund.

[hellhasnofury]

Took out loan with HFC in 2002 settled it in 2006.was told i must have ppi with it,have no docments to refer to will it still be possible to make a claim for a refund.

Hello Cowboy,

 

Please start you own thread on the ppi forum, your question will get lost on here.

 

If you don't know how to start a new thread. Look on the left hand side I think just before or just after the stickies you will see a tab New thread. click on that and tell us your story. There are lots of people at different stages of the process. Some just starting, some a way through and quite a few successes as well. Read the different posts and get all of the information that you need.

 

I will look for your new thread. I am sure that you will be able to make a claim for the refund of your ppi if it was mis-sold to you.

 

There is a process to which I is important that you follow

 

1. Get the information that you need. This means sending a SAR to get it. It does not matter that you do not have any account no. Your name and address will surfice.

 

2. Send a preliminary letter asking for it back, giving 14days

 

3. If no response, send a letter before action, giving 14days

 

4. If no response, Take them to court:D

[gordonsanderson]

Hi Alan,

The link you`ve put up is another good one, i wonder which of those outlined in the FSA handbook was acted upon or actually explaind to the/any individual in respect of specific products sold on behalf, i for one have not/was not given any advice concerning those points from the FSA, so the building of my case is increasing week by week.

Hope your case building is going well also, i`ll watch with interest.

 

Regards

Gordon

[vanhalen1]

Dear all, could i have a case by saying that, in the case of my girlfriend, she was not advised that there are cheaper PPIs out there.Her one costing £ 8500 plus interest of £4000, on a £19000 loan.

[lindyhop]

Hi.

 

im still fighting. but not clear on how the interest is worked out and its doing my head in. is it premium + interest paid on premium for ( ?yrs) plus 8 percent on total amount or for each of the (? loan years).

 

the ppi i am currently fighting ended in december 2004 so should i be asking for premium + interest on 5 years (of the loan) plus same rate of interst since loan closed + 8 percent on this combined amount????

 

the one i am currently fighting for looks like this

premium £2,388.10

paid 52.34x60 = £3,140.40

5 years interest £752.30?

 

do i then just 1 x 8 percent to £3,140.40?

or

do i add 5x 8 percent for the loan years

and

am i due any interest on top from the close of the loan until i get my money back. if so what rate? the same as the loan rate???

 

and if not entitled to claim from the close of the loan, can someone please take the time to explain why i should not be compensated for the period since the loan was paid off, until i am pay me back?

 

i bet the answer to this is somewhere on the site, but my last few visit have been to try to find out this information, so that i am clear but i cant find specifics and its sooo annoying. (tried the spreadsheet, but the links dont put you straight into a spreadsheet but a site and i cant find the template for interest calculation on this site either) HELP! all this is making my hair fall out:confused:

[hellhasnofury]

Hi.

 

im still fighting. but not clear on how the interest is worked out and its doing my head in. is it premium + interest paid on premium for ( ?yrs) plus 8 percent on total amount or for each of the (? loan years).

 

the ppi i am currently fighting ended in december 2004 so should i be asking for premium + interest on 5 years (of the loan) plus same rate of interst since loan closed + 8 percent on this combined amount????

 

the one i am currently fighting for looks like this

premium £2,388.10

paid 52.34x60 = £3,140.40

5 years interest £752.30?

 

do i then just 1 x 8 percent to £3,140.40?

or

do i add 5x 8 percent for the loan years

and

am i due any interest on top from the close of the loan until i get my money back. if so what rate? the same as the loan rate???

 

and if not entitled to claim from the close of the loan, can someone please take the time to explain why i should not be compensated for the period since the loan was paid off, until i am pay me back?

 

i bet the answer to this is somewhere on the site, but my last few visit have been to try to find out this information, so that i am clear but i cant find specifics and its sooo annoying. (tried the spreadsheet, but the links dont put you straight into a spreadsheet but a site and i cant find the template for interest calculation on this site either) HELP! all this is making my hair fall out:confused:

 

Hello Lindyhop,

 

Get back to your thread you naughty girl:lol: Your questions will get lost on here.

 

Now we can't have you bald so

 

Try this

 

6. Interest calculation spreadsheets

 

If you get stuck, shout me:D

[BankLover_not]

Hi Guys,

 

I'm sorry to post this here but I can not, again, see how the hell to start a new thread - it's frustrating, can someone tell me how please?!!

 

I am seeking some advice regarding PPI premiums being recovered. I was sold a Loan Protection Policy at the same time as I took out a loan 4 years ago with Lloyds TSB. At the time I was self-employed and as I understand it, this is good grounds to recover the PPI premiums paid already and cancel the policy.

 

I have written 2 letters already to Lloyds TSB, using the templates, and they say they will not refund any of the premiums I have paid as they believe the policy was not mis-sold. I am therefore going to lodge an official complaint with the Financial Ombudsman. Having not done this before I was wondering whether anybody had any useful tips before I do. I would be very grateful if you could share them with me.

 

Thank you.

 

BankLover_not

[jowalshy]

Hi Bank Lover not. Click here to start a new thread in this forum:-

 

[car2403]

Hi Guys,

 

I'm sorry to post this here but I can not, again, see how the hell to start a new thread - it's frustrating, can someone tell me how please?!!

 

I am seeking some advice regarding PPI premiums being recovered. I was sold a Loan Protection Policy at the same time as I took out a loan 4 years ago with Lloyds TSB. At the time I was self-employed and as I understand it, this is good grounds to recover the PPI premiums paid already and cancel the policy.

 

I have written 2 letters already to Lloyds TSB, using the templates, and they say they will not refund any of the premiums I have paid as they believe the policy was not mis-sold. I am therefore going to lodge an official complaint with the Financial Ombudsman. Having not done this before I was wondering whether anybody had any useful tips before I do. I would be very grateful if you could share them with me.

 

Thank you.

 

BankLover_not

 

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

[babygirl10873]

i have had a loan with blackhorse and my ex partner then took out a further 3 on the first one which was sercured on the house for 25000 and had the big payment at the begining. after reading your thred I went over the first one and notice although my partner was self employed and i was not working the ipp was for unemployment they knew this from the very begining all paper work was rushed through and we were never given the choice of not having it or a figure without. I am going to send them a SAR because we paid this of after two years but paid almost 1000 more than we orginally borrowed. Again we needed the money and because my partner was self employed found it difficult. I almost positive the insurance was not mentioned at all just what we needed to repay every month. if it had of been then i would of questioned the fact with my partner being self employed. not meaning to go on he got a further one after and currently had two runing he is not very well educated and never knew what he has been paying. my question is he is paying for two protection on two loans but they are for life accidental critical illness and not employment can i still argue it was missold because the exclusions were not made clear so they missled him into thinking it covered him for everything.

[babygirl10873]

sorry forgot all these loans are regulated by the consumer credit aggrement act 1974 does it say they can do this in that aggreement. I need help with this because i know i have a fight again all these loans put the charges on at the begining and say even if you cancel you still have to pay protection for the period took on the agreement.

any help would be greatly appreicated.