Are the banks obliged to re-open previously rejected claims for mis-selling

[lostinfrance]

I was mis-sold single premium PPI on a £12500 personal loan that I took out with the Co-operative Bank in April 2006.

 

The loan was all arranged by phone & when I objected to the PPI (I said that I had heard that the PPI offered by banks wasn't good value & that I was better off going for an independent provider) I was told that if I didn't take their PPI then they would have to do further credit checks & that me getting the loan would be delayed.

 

I was desperate for the money at the time so agreed.

 

In November 2008 I formally complained to the Co-op about the mis-selling.

 

I eventually received a rejection in February 2009 basically saying that I had a 30-day cooling off period & could have cancelled the PPI policy in that time

(I could not as that would have meant cancelling the loan) & that I had in any case benefited from the PPI if I had needed to make a claim.

 

They made an offer to cancel the remainder of the PPI & refund me £1700.

The PPI cost £4262.77 or with interest £5200.

 

I did not accept the refund as I did not think it right.

 

I was also informed that if I was not happy with the decision that I could appeal to the Financial Ombudsman Service.

I realise that in retrospect this is what I should have done but my life was in somewhat of a mess at that time & I didn't pursue it.

 

I know that the banks withdrew from the big court case last year & had thought that they were supposed to be reviewing every single PPI policy that was sold. I now gather from some Googling that they may in fact not have been forced to review all previously rejected claims.

 

My question is that as the Co-op said that was their final decision & that I didn't appeal to the FOS three years ago does that now prevent me from resubmitting a mis-selling claim? Is there anyone else in the same situation or has heard of a previously rejected claim for mis-selling being successfully re-opened?

[ims21]

Hi

 

You can put in the claim again following the Judicial Review and tell them that you want your case reviewd following that decsion.

 

Make sure you do it properly....have a read of No.1 in my signature and use the spreadsheet at the end to prepare a schedule of claim. Also complete a fos questionnaire (available from the fos website).

 

When you have done your spreadsheet post it up here for checking (MINUS ALL PERSONAL INFORMATION)

 

ims

[dx100uk]

yes they are even the fos say so.

 

and the co-op know this

 

i've three going now following refusal in 2007

 

dx

dx

[lostinfrance]

Thanks for the advice. I have prepared the attached spreadsheet ready to include with my FOS questionnaire & covering letter. The basic figures are that I have been paying out £61.91/month for the last 5 years 11 months which amounts to £4333.70 but adding the 8% simple interest of £1011.61 brings the grand total up to £5345.31. The outstanding loan is currently £3241.16 with 13 months left so that would cover paying off the loan & leave me a nice windfall of getting on for £3K.

StatIntSheet v101-Final-anon.xls

[ims21]

Hi

 

Just to confirm...the loan was £12,500 and the PPI premium was £4,262.77 making the total loan £16,762.77. That means that PPI is 25.43% of the total so £61.91 should be 25.43% of your monthly repayment.

 

If that is so then your spreadsheet is correct. The remainder of the loan will be restructured to remove the remaining PPI from it

 

ims

[lostinfrance]

Is there anything that I should make sure to mention in the covering letter? The main points for me are that I was forced to take PPI or not get the loan, that I didn't realise at the time that the insurance was a lump sum paid up front & then repaid with interest (I see this now I look at the signed loan agreement but it didn't hit me at the time). The other issue is that they refused me when I complained before & offered a miserly refund of £1700 when they had taken over £5000 from me for the PPI. I want to make clear that I didn't accept their offer because I still felt that I had been mis-sold & felt that if I did accept I would be acknowledging that their decision to refuse to reimburse me was correct. I should have appealed to the FOS then but as I said I just let it slide.

[ims21]

Hi

 

The letter itself just needs to be very simple and along the lines of

 

"Please find enclosed my completed fos questionnaire and spreadsheet of workings in respect of the PPI which was mis-sold to me on my loan account number xxxxx with you.

 

I require the return of my money in accordance with regulatory guidelines for redress and look forward to hearing from you"

 

Your reasons for the mis-sale are set out in the fos questionnaire so you don't need to repeat them in the letter. Also I wouldn't mention the previous goings on, just get this new claim in to them.

 

ims

[lostinfrance]

The banks have now been ordered to contact everyone who was ever sold PPI telling them that they may have been the victim of mis-selling.

 

I have just had a standard letter acknowledging my complaint that I sent off a few weeks ago.

 

Hopefully I will be a bit ahead in the queue over those who will be receiving letters shortly as the estimates of number of letters to be sent out vary between 4 million & 12 million.

[joanneg]

The banks have now been ordered to contact everyone who was ever sold PPI telling them that they may have been the victim of mis-selling.

 

So is this anyone who was ever sold PPI or anyone the banks believe was possibly mis-sold PPI ?

[lostinfrance]

The mis-selling was so widespread that the FSA have insisted that the banks etc contact everyone who was ever sold PPI & tell them that they may have been mis-sold. It is/was such a fundamentally bad product that it could be that the majority of policies were mis-sold. The now banned practice of selling a single premium insurance by wrapping up a loan along with the main loan is a case in point. Arguably anyone sold a single premium PPI has a case for compensation.

[lostinfrance]

SUCCESS!!!

I received a letter from the Co-operative Bank this morning & they have agreed to everything that I asked for.

Full refund of PPI premium & the interest applied to the premium.

Additional 8% interest on the above

So my loan will be paid off 12 months early & I will receive a cash payment of over £3000.

 

There was no apology just a statement that "We are not satisfied that we have provided you with the high standard of service we would expect and therefore, as a gesture of goodwill, I am prepared to offer you...".

 

As soon as I get the money I shall be closing the account which I probably would not have done if they had the decency to apologise. I have been really disappointed thus far with my treatment by a bank that makes such a song & dance about its ethical credentials. At least I know where I stand with the capitalist greed of Barclays.

Edited April 14, 2012 by lostinfrance

[ims21]

Great news, well done

 

Have you actually received the loot yet?

 

If not, let us know when you get it and we can change the title of your thread to reflect your win :whoo:

[lostinfrance]

I have to sign a form & return a form to acknowledge that I accept the offer. I have to select from three options:-

1) I do not wish to cancel the PPI or receive a payment(!!!)

2) Pay off the loan & pay me £3100+

3) Pay me £5400+ & arrange a new loan for the balance owed repayable with either 12 monthly repayments of £199.69 or 18 monthly repayments of £133.13

 

If it wasn't for the fact that I would really like to be totally debt-free for the first time in years the latter 18 month offer is actually a bit tempting as by my calculations it's a £2200+ loan at an APR of under 3.5%.

[dx100uk]

as for no.3. they cannot do that

 

they must restructure the old loan

 

i think you need to point that out to them

 

its clearly explained in the FOS documents.

 

the customer should not be offered a new loan , the original loan should be restructured.

 

dx

 

this is so's they dont sign you up to another longterm loan

[lostinfrance]

Perhaps I paraphrased too much but I suppose that it depends on your interpretation of what 'restructure' means as you would effectively need to have a new loan.

 

Here is the full text of Option 3 (bold emphasis is theirs)

 

3) I would like to receive the refund of £5xxx and please arrange for a new loan without PPI to be set up as detailed below (please tick your preferred option):

I would like the term of the loan to be 12 months, with monthly repayments of £199.69*

I would like the term of the loan to be 18 months, with monthly repayments of £133.13*

 

*Please note that the actual monthly repayment may differ slightly from those shown, depending on the date the new loan is opend.

 

After receiving this signed acceptance a loan agreement form will be sent to you. After you have signed and returned the agreement form for your new loan, arrangements will be made to process the refund of £5xxxx direct to you.

[dx100uk]

they cannot make you have a new loan

they must restructure the old one......

 

they also cannot dicate what happens to the money.

 

so all of those are rubbish.

 

they can only offset against NOTIFIED arrears.

 

i want the money thank you

i'll choose what i do with mr co-op!!

 

 

dx

[lostinfrance]

Re-reading one of the other pieces of paper in the envelope I see that I have 13 repayments left & the bank say "On the basis that new loans can only be set up using multiples of 6 months you could either..." choose 12 monthly repayments or 18 monthly repayments. So a proper restructuring of the loan would be to adjust the 13 remaining monthly repayments downward to reflect the fact that there is no longer a PPI element included. The example on the FOS website quotes someone who has a 60 month loan & reclaims after 20 months then having the remaining 40 repayments reduced. So why the Co-op decide that a new loan must be in multiples of 6 months is presumably to suit their own accounting purposes rather than any legal requirement.

 

Presumably the only way to get them to adhere to the letter of the law as per the FOS is to refuse the offer & complain to the FOS. As Option 2 (pay off the balance of the loan & give me £3+K in cash) is my preferred choice I don't think that I'll bother to argue the toss.

[dx100uk]

i think if you just pointout you are aware they cannot make you take a loan out

as you've read the FOS guideline [or even quote them]

 

the co-op will see you mean business

 

the money should come to you with no strings end of.

 

what you do with it, is upto you.

 

the co-op should not be suggesting you use it to pay of your loan withthem

 

that isunfair & detrimental to any other creditors you have.

 

dx

[lostinfrance]

I get your point but I don't have any other creditors & TBH all I want to do is pay off the loan & end my dealings with the Co-op. I'll send a covering letter pointing out that while they they don't admit that they mis-sold me PPI offering me a full refund plus interest amounts to a clear admission of guilt & therefore they should be adhering to the FOS guidelines when it comes to restitution. I suppose that it won't do any harm to copy the FOS on the letter too.

[dx100uk]

You dont need to imho.

 

they will never admit guilt.

 

just refer to the fos guidelines on their conduct

 

dx