Mate vs Santander

[gregorious77]

A good friend of mine had PPI on a substantial loan with Santander.

They have recently written to him to say he had PPI and may have a claim as the banks now have to do.

He was considering filling out the forms but I told him to hold fire until WE can work out the figures first!

At first he was not up for claiming as he said he took the PPI as insurance for the loan but he is now not happy with the fact that he may have been able to purchase it cheaper from someone else etc.

 

I have not looked at his paperwork yet but have a couple of general questions.

Do Santander try and defend aggressively (like Cap1)

Do they normally front load PPI?

he said off the top of his head the PPI was 9K or so!!!

[ims21]

A good friend of mine had PPI on a substantial loan with Santander.

They have recently written to him to say he had PPI and may have a claim as the banks now have to do.

He was considering filling out the forms but I told him to hold fire until WE can work out the figures first!

At first he was not up for claiming as he said he took the PPI as insurance for the loan but he is now not happy with the fact that he may have been able to purchase it cheaper from someone else etc.

 

I have not looked at his paperwork yet but have a couple of general questions.

Do Santander try and defend aggressively (like Cap1)

 

Probably not as much although there are a lot of banks trying to wriggle at the moment

 

Do they normally front load PPI?

 

Depends on the loan...some are single premium front loaded, others are separate payments made alongside the loan, such as in mortgages etc.

 

he said off the top of his head the PPI was 9K or so!!!

 

Blimey....nice little windfall coming back to him then

 

 

Hi Greg

 

See my replies in red

 

Sight of the agreement will tell you whether this is single premium, front loaded PPI.

 

If it was single premium you can add to the list of mis-selling criteria that the true cost would almost certainly not have been explained to him.

 

ims

[gregorious77]

Not got to look at the figures yet but its definitely fishy, he paid it off 2.5 years early and only saved £18!!

PPI was circa 4K not 9K but still a good old chunk of cash. total extra on loan was 9K i.e PPI and interest.

[gregorious77]

I have had a look at his papers and he needs some additional information I think.

They have sent their own version of the FOS questionaire which is pretty much identical except they have tick boxes for reasons for mis-selling that you can choose from.

We have calculated up to the point where he paid off early but we dont know what the final payment was or how much of it was PPI if any?

He had PPI added to the loan amount but it was clearly broken down into how much of the monthly payment was PPI and how much it would cost total including interest.

 

I think he should fill out the form and tell them he believes he was mis-sold due to them not telling him he could have got it cheaper elsewhere and see what they come back with.

This will cost nothing and get us some numbers to question/compare.

So far it looks like we got £700 interest to add the the 3.5K he did pay up to the early repayment date.

[ims21]

Hi Greg

 

You might be able to work out what the PPI settlement was. Have you got the agreement or details from it?

 

Also, if your going to use the lenders copy of the questionnaire, feel free to put on an additional page if you want to expand on any mis-selling reason. Personally, I'd use the fos one myself and again you can additional sheets if required.

 

Also I would not take a flyer with just one mis-selling reason and see what comes back. Check that there are not others that would apply (I bet there are).

 

For example, was the true cost of the PPI explained given that it was added to the loan and would paid for over the life of the loan with interest. Did they carry out a needs assessment? There are usually at least two or three mis-selling criteria that would apply.

 

ims

[gregorious77]

You might be able to work out what the PPI settlement was. Have you got the agreement or details from it? We do have the agreement

 

Also, if your going to use the lenders copy of the questionnaire, feel free to put on an additional page if you want to expand on any mis-selling reason. Personally, I'd use the fos one myself and again you can additional sheets if required.We will include extras plus a covering letter

 

Also I would not take a flyer with just one mis-selling reason and see what comes back. Check that there are not others that would apply (I bet there are).

 

For example, was the true cost of the PPI explained given that it was added to the loan and would paid for over the life of the loan with interest. Did they carry out a needs assessment? There are usually at least two or three mis-selling criteria that would apply.

We will try and get 2 or 3 on the go then

 

I think I need to convince him a bit more on how pushy we will need to be as he is a bit reluctant to be too pushy.

The agreement breaks the loan down into loan amount and interest as well as PPI amount and interest and splits total cost of loan and total cost of PPI.

He doesnt remember much about the selling of the PPI as it was 2006.

 

I think our reasons are:

Not advised he could have purchased elsewhere.

Led to believe it was required for the large loan amount. (large risk)

Not asked if he had other means of covering the debt. (good company sick scheme).

No needs assessment carried out.

Not asked whether he had any other insurance which would cover the loan.

Not told of any exclusions that may have applied.(full T&C of the PPI)

There may be more!

[ims21]

Hi Greg

 

Your list at the end sounds good.

 

If you use this spreadsheet for the PPI loan, you should get a broad idea of what would have been the settlement figure after a given number of months have been paid.

 

LoanAnalysis.xls

 

ims

[gregorious77]

good plan then anything over this must be for PPI.

Ill get together with him at some point and do some serious number crunching.