Newbie with swift

[swiftdunce]

Hi

 

I have a secured 2nd mortgage with swift advances. It is just over 3 years old and I have always paid it on time. I needed to go sub-prime due to my marriage breakup meaning my credit was wrecked. Now things are just a little a bit better I decided to see if I could get a remortage with a mainstream lender however after paying swift for 3 years I owe more than I originally borrowed. My interest rate has increased twice over the term and I took out PPI - I was shocked to discover it actually only covered the first 3 years as I was sure it covered the term of the loan which was 15 years.

 

Apart from kick myself what can I do? The salesman at the time did say I should remortage to a mainstream lender when things improved however I am going to end up paying a lot more money.

 

Any advice or shoudl I just suck it up?

[Killerschick]

Hi swiftdunce,

 

Sorry to see that no one has replied as yet, I'll try to give you a few pointers.

 

As far as PPI is concerned some have claimed successfully that the sale of it led to an unfair relationship see Yates & Lorenzelli v Nemo, a summary of which is available here:-

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/unfair-relationships/yates-lorenzelli-nemo.pdf

 

But more recent and higher level cases have resulted in decision favouring the lender see Harrison & Harrison v Black Horse, full case here:-

 

http://www.bailii.org/ew/cases/EWHC/QB/2010/3152.html

 

so whether you have a case for making a claim for a rebate via the courts will depend on the circumstances of the sale and what you were told by the broker.

 

As far as I am aware (at least until the result of the BBA's judicial review of the FSA's decision that lump sum premium PPI sales were unfair to consumers is announced) FOS is still likely to find in favour of consumers who complain that they have been mis-sold PPI. Reasons for claiming that a policy was mis-sold include, that the broker suggested the loan was conditional on taking the insurance, the policy was not explained, the policy did not run for the full term of the loan, the policy was not suitable for the insured's needs e.g. if self-employed but paying for redundancy cover, you can find a lot more detail on the circumstances that the FSA though led to inappropriate sales on their website here:-

 

http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf at annex 4 - Open letter listing common PPI sales failings, it is worth looking through this to see whether your sale might fall into one of the categories. If so then start by complaining to the broker who sold you the policy (if still trading) and Swift saying you want a rebate of the premium applied to your account along with a refund of any interest charged on the sum. If you do not get a satisfactory response you are then in a position to take your complaint to FOS.

 

There are others on CAG who advocate strongly that FOS should not be used and claims should be brought in the courts. I believe that the individual should decide for themselves what they feel comfortable doing. If you are claiming over £5000 through the courts not only will you have to pay to issue a claim but if you lose you will be liable for the other side's costs and no one can guarantee you will win. It is free to take a complaint to FOS and doesn't involve court procedures or hearings, everything is considered on paper evidence, therefore it poses less risk but the award may not be as much as a court and it is binding and the same issue cannot then be the subject of a court claim.

 

Good luck

 

KC

[swiftdunce]

Thanks for the info, it is appreciated. All I needed was a steer in the right direction.

[42man]

Have a look here too - http://www.consumeractiongroup.co.uk/forum/showthread.php?296456-New-mortgage-arrears-template