challenging Creation financial services about PPI

[jools153]

Brief overview.

This is a store card I took out 12 years ago. 7 years ago I got into financial difficulties and and took out a DMP. I have now cleared most of my debts but the balance of this one is over double what it was when I started.

The reason for this is that although creation stopped interest and charges for a time, they did not stop adding the PPI even though I wrote to them on a few occassions requesting this. Eventually I got them to stop adding it.

I sent them a SAR in December 2010 and I had most of the information that is req of them in Feb 2010. THe bit that was missing was the original credit agreement. I wrote to them again saying that they had not fulfilled their obligations under the consumer credit act and that I wanted to see a signed copy of this agreement. I got various phone calls threatening me with all sorts of legal action over the course of a few months and eventually a signed copy of my credit agreement.

This credit agreement clearly shows that I did NOT tick the box for payment protection insurance when I took out the store card!!! I have sifted through all the information that they sent and I cannot find a singel reference to me having agreed to pay for this product.

Having done some calculations I estimate that approximately £1400 of this balance (Total £2k) is PPI and interest on it.

Today I have had a letter from Moorcroft on behalf of creation chasing this debt.

What do I do now?? DO I send a letter to moorcroft telling them I do not acknowledge that I owe the money or do I write direct to Creation and telll them that I believe these amounts were illegally added to my account and request a full refund of the total amount????

I would be really grateful to recieve some advice asap if anyone out there has any knowledge of this.

Many Thanks

[ims21]

Hi

 

You need to get a claim sent in to claim back this mis-sold ppi. Did your SAR provide you with a complete transaction history on the account?

 

Go to the fos website and download a copy of their consumer questionnaire and complete it ready to send off with your claim. You should also prepare a schedule of claim including compound interest right up to date.

 

For the moment I would ignore Moorcroft...lets find out what your claim amount is first.

 

Regards

 

ims

[jools153]

Hi Ims thanks for that.

Yes they sent me all the statements - every single one. I did a rough estimate and with the compound interest I worked it out to be approximately £1200. I think I added the 8% on to the total balance though not as a compounded amount. Is that correct? Since I calculated that I have had a further £200 odd pounds of charges added on to the account, should I include these in the claim or is this a separate claim?

thanking you in advance

Jools

[jools153]

Also when you say a 'schedule of claim' can you clarify what you mean by this?

Thanks

[ims21]

Hi Ims thanks for that.

Yes they sent me all the statements - every single one. I did a rough estimate and with the compound interest I worked it out to be approximately £1200. I think I added the 8% on to the total balance though not as a compounded amount. Is that correct? Since I calculated that I have had a further £200 odd pounds of charges added on to the account, should I include these in the claim or is this a separate claim?

thanking you in advance

Jools

 

Just to make sure you are claiming the right amount, I've attached a compound interest spreadsheet for you to use of you wish. Change the APR in the blue section to the rate being charged on the card. You can, if going the court route, claim a higher rate but you'd need to read the Interest Tutorial to become familiar with the principles of interest in restitution.

 

Change your personal details in the blue section.

 

In the white list section underneath the coloured bits, enter the date of the charge, a description, i.e. "PPI Payment", and the amount. The rest of the calcs are done for you. You only enter list data in columns A, B and C in the white section. The rest of the sheet is locked to prevent alteration to the formulae. The end date of the claim is the current date.

 

Your charges claim should be a seperate claim from the ppi but you can use the same spreadsheet for the calulation on those as well (a different copy though).

 

Also when you say a 'schedule of claim' can you clarify what you mean by this?

Thanks

 

Schedule of Claim is the spreadsheet described above.

 

Regards

 

ims

 

CISheet.xls

[jools153]

I have just completed the spreadsheet you attached. I have put todays date as the claim date however interest has been stopped in 2005, restarted in 2008 then stopped and then restarted again since this. Do I just put today's date and hope for the best or should I try and calculate it exactly?

[ims21]

Hi

 

"Claim To" date is always up to now....after all they have had your money up till now and earned profits from it.

 

Regards

 

ims

[jools153]

Well I posteed this off back at the end of september and...................NOTHING. Except last night i recieved another call from Moorcroft asking me to pay in full (balance is now £2200, which is a further £200 of charges in three months!!!!)

I advised them of my action and they have put the account on hold again. I am going to resend the claim back to creation recorded delivery and tell them that if they do not acknowledge the claim then I will consider taking further action? Is that the right thing to do?

Any idea what I do about the interest and charges that they are continually adding to this account????? before I know it its going to be £3000 and my orignial debt was only £700!

[ims21]

Don't forget that a ppi claim lodged at the end of September has a time period of 12 weeks for the lender to investigate and give a inal decision (although an acknowledgement would have been nice!)

 

Did you send your spreadsheet, questionnaire and letter recorded delivery and if so have you checked on line to make sure it was delivered?

 

What have you done about the charges claim?

 

ims

[jools153]

Ah 12 weeks - I missed that bit. Ok neck wound in! Yes it was delivered. I checked online. I haven't done anything about the charges yet. Mostly because a lot of the charges have been added since I did the SAR and I haven't kept the statements (in fact i haven't had any for ages!!!) how can I go about getting a breakdown of the last 12 month charges? Do I need to send another Sar request for those dates?

[ims21]

Hi

 

To try and save a tenner and since it is only for the last 12 months, I'd start by just asking them if they can let you have an up to date statement. See what they say.

 

ims

[jools153]

Good plan Ims I will give it a go!

Thanks for all your help too x

[jools153]

ok I need some more advice with this one please!

Basically I have left them time to respond to my ppi claim. Nothing. I have today resent the request recorded delivery to creation but also to West Midlands Debt recovery who have been ringing me about three times a day to chase this debt. They say that they have all of creations records and they have no knowledge of my PPI claim. I have recieved a really snotty letter from West Midlands debt collectors who are saying that 'I don't understand the seriousness of this debt' and that they fully intend to take whatever action necessary to recover the money, including sending a doorstep collector.

I have just been reading a few other threads about creation and it seems they are not 'nice players' I clearly have evidence that I never signed for teh PPI as I have the original cca whcih clearly shows the box unticked. Within the SAR there is also no mention anywhere that I agreed to this PPI.

My worries are that:

A.) my claim will be totally ignored by Creation or WMDC

B.) there is some loophole that means the policy was added before it was regulated by the OMBUSMAN or something silly

C.) Further charges are being added weekly and the debt that was originally £750 is nearly £2500!!!

 

Does it matter that I am claiming a refund on the ppi (and eventually the charges too) even though I have not paid the balance off?

I am really worried that they are going to try and take me to court on it - is this likely ? What would my chances be? WMDC say that even though I have a PPi claim in I should still be making a payment monthly to them in the interim - is this right or a tactic to get me to admit liability to the debt? the amount I consider to be owed under the ppi refund is £3900 and the debt currently stands at about £2500

 

I wold be really grateful for some advice on how to tackle this

thanks

[ims21]

Hi

 

Just a quickie before we move on....when was your last transaction/payment on this account?

 

ims

[jools153]

I last made a payment in April last year (2011)

[ims21]

ok I need some more advice with this one please!

Basically I have left them time to respond to my ppi claim. Nothing. I have today resent the request recorded delivery to creation but also to West Midlands Debt recovery who have been ringing me about three times a day to chase this debt. They say that they have all of creations records and they have no knowledge of my PPI claim. I have recieved a really snotty letter from West Midlands debt collectors who are saying that 'I don't understand the seriousness of this debt' and that they fully intend to take whatever action necessary to recover the money, including sending a doorstep collector.

I have just been reading a few other threads about creation and it seems they are not 'nice players' I clearly have evidence that I never signed for teh PPI as I have the original cca whcih clearly shows the box unticked. Within the SAR there is also no mention anywhere that I agreed to this PPI.

My worries are that:

A.) my claim will be totally ignored by Creation or WMDC

B.) there is some loophole that means the policy was added before it was regulated by the OMBUSMAN or something silly

C.) Further charges are being added weekly and the debt that was originally £750 is nearly £2500!!!

 

Does it matter that I am claiming a refund on the ppi (and eventually the charges too) even though I have not paid the balance off?

I am really worried that they are going to try and take me to court on it - is this likely ? What would my chances be? WMDC say that even though I have a PPi claim in I should still be making a payment monthly to them in the interim - is this right or a tactic to get me to admit liability to the debt? the amount I consider to be owed under the ppi refund is £3900 and the debt currently stands at about £2500

 

I wold be really grateful for some advice on how to tackle this

thanks

 

Hi

 

OK so your claim for PPI is firmly with Creation. You have now re-submitted the claim to them but you are of course free to get fos involved as they missed the deadline for the first claim lodged.

 

Creation might think they can ignore it but they cannot.

 

You need to start work on the charges reclaim despite the fact that you don't have the latest statements. Get a claim in for thos that you do know about and use the CI sheet that was posted earlier.

 

While they may try and take you to court you will nowe have two defence angles, one the PPI and the other the charges.

 

Technically they are right that some tloken payment of £1 per month could be paid but get the charges put onto a spreadsheet as you may find that the charges will wipe the debt. Without doing that bit of maths we don't know.

 

I would suspect that if they know the debt is all charges then they may steer clear of court action.

 

ims

[jools153]

Hi

Thanks for that - the PPI claim in itself is more than the current balance. I will however send them a letter requesting the charges back. As i don't have the last year or so statements (because they have not been sent) should I just add the amount that I think has been added on? For example I think its about £500? and see where I go from there?

if it goes to court, is it my local one or theirs or another one entirely?

Is there a template letter for requesting the charges back?

[ims21]

Hi

 

Do the spreadsheet for charges that you do know and see what it comes out to before sending any letters of reclaim. For the charges you will need to send the preliminary letter, the template for which is in the CAG library. The link to the library is at the top of every CAG page in green. The normal procedure is that they will refuse and you would then send an lba prior to issuing against them but lets find out the amount of your charges claim first.

 

If they do issue against you it would be transferred to your local court.

 

ims

[jools153]

right ok.

I have just calculated the charges up until the end of 2010 which is all the informaiton I have to date. In terms of charges this is just late payment fee's I HAVE NOT included service charge of 2.2% each month that they added to each statement on the balance (as I assume this is the interest) is this right or do I need to consider that as a charge that I need to add to teh spreadsheet?

The total of late payment charges etc is £670.01 including the compound interest.

Should I be adding in the service charges of 2.2% a month on the balance that they were adding?

[ims21]

Hi

 

What rate of interest did you use?

 

Service charge? Any chance you can scan and post up a statement (MINUS ALL PERSONAL INFORMATION)

 

ims

[jools153]

I will do my best to add a scanned statement in a mo

I used the rate of interest that was on the form 26.4% for the year.

A typical statement (after I entered the DMP reads: 09dec payment recieved thank you £9.35CR

23dec service charge at 2.2% per month £35.08

I just did a quick calculation based on claiming these service charges back since I entered a DMP and the total of charges is £943.97and with the compound interest is a total of £5395.11

I will upload a statement now for you to see

[jools153]

I am really struggling to scan it in. I will see if I can do it as a photo instead!

[jools153]

[claireb1983]

jools153 - I am attempting to claim PPI from Creation at present and have been receiving an acknowledgement letter within a few days of writing to them although I have not yet heard anything on my SAR

[ims21]

[ATTACH=CONFIG]33296[/ATTACH]

 

Its a bit small.

 

You said earlier that they stopped interest for a period....does this service charge crop up all the way through or is it only during a period where they stopped interest? When they were charging interest, was it actually described as "interest" on the statements?

 

ims