Am i thick

[coolmiller]

Hi guys and gals 1st post for me

 

i`m not really an internet person (well just for poker) after waiting a while to hear about my ppi claim with yorkshire bank i came across this site (3 weeks ago) .I Have had a good browse and only wish i had found it 3 months ago or at least done some research ..as i suppose you can guess i have gone with one of the many firms that kept bugging and bugging me every other day by phone etcetc ..well the good thing is they got me thinking and sure as damn it i had ppi on a loan in 2005 (large loan at that)i repaid the loan by the means of a 2nd mortgage again with yorks bank

 

well just to let you know i got a letter 5th april advising me they are looking into my complaint etcetc so i or my claims company exspect to hear something soon ,,, i understand 8 weeks from date of their original letter of looking into complaint letter ?? maybe one of the experts on here can advise on that for me ??

 

i dont have a clue what to exspect back as have sent original loan docs to claims company and like mentioned before settled the loan early .. i can say the loan was repaid 2007 ppi was just over 6k with 2k plus interest but i wont have paid all that interest with paying the loan off early ..i assume in settling the loan i will have paid all the ppi initial cost ???? i read and read and read on here but still im no wiser as what to expect back :oops:

 

ps the claims company i am using is consumer first and apart form original letter ..and one letter since to say yb have been in touch .. going to be a bloomin good pay day for them if they get the result 1st time ...and for what i see on here i could have done all myself for the cost of a few stamps :x

[ims21]

Hi

 

They will have 8 weeks from the date of receipt of the claim to give you a final decision before the matter can be referred to fos.

 

What you should expect back is the entire premium plus the interest you would have paid through your monthly payments plus 8% on those payments made running from the date of payment to the date of settlement.

 

In addition it is likely that you would have overpaid the PPI on settlement of the loan, even if they did give you a rebate, so you should get interest on that as well.

 

Very difficult to be precise as you haven't quoted any figures for PPI above.

 

I hope you kept copies of the documents you sent this claims outfit. Sadly I thyink it is too late to get out of the contract you have with them.

 

ims

[coolmiller]

thanks ims for your reply .. i gathered it too late to get out of the claims clutches but anything back will be a bonus for me

 

am i correct in thinking that i will only get back the payments i made for the 2 years until settlement ?? with interest or will my settlement of the loan also included the ppi original cost but with out the extra 5 years of interest payments due to early settlement ??

 

once again thanks for the info and i`ll be ure to keep you informed as the 8 week period before fos is due on 29th of may so another week or its going into the hand of the fos ?

[coolmiller]

and sadly no i didnt keep any copies of the loan agreement . but 1st thing in morning im going to ring them and ask for the original loan agreement back.. any decent firm would surely have copied them and sent the original back straight away

 

i know its only speculation on your part .. but from your time here would you say yorkshire bank are playing hard to get. or generally paying up without the need for fos ???

 

many thanks in advance

[ims21]

Hi

 

Some and some really....what are the reasons given for the mis-sale?

 

ims

[coolmiller]

well i got the loan from within the bank ,, i was told that i would only be able to have the loan if i took ppi as it was a large loan (23k) the amount also paid of an exsisting loan (no ppi)

 

i wasnt clearly explained the ins and outs of it just asked if i i understood what ppi was ,,, and needing the loan as i did at the time just said yeah

[ims21]

OK

 

They are good enough reasons.

 

ims

[coolmiller]

thanks ims21 ..just to add i think your doing a sterling job in helping joe bloggs

 

 

think of all the 20% / 30% you could be earning you could be almost as rich as the fat cat bank managers that have been fleecing us all for years :lol:

 

im not sure about the claims handling company when i asked what to expect they didnt know and wouldnt even say roughly .. they just said they wrote asking for a refund and not mentioned any figures..they told me they left that to them to make an offer ..also whe i mentioned the 8 week period they told me something whent off in jsanuary and that all claims were put back due to large numbers ? will i have to promt them to go to fos if i dont hear anything by end of next week or should i trust in them and just let them get on with what is there job now ???

[ims21]

Hi

 

Yes I'm in the wrong business

 

These claims companies do talk drivel. Prior to January the FSA granted extensions of time but from January it is back to the standard 8 weeks.

 

I would wait the 8 weeks and see what happens. It is your decision as to whether to pass to fos or not, not theirs.

 

ims

[coolmiller]

nice 1 your advice is priceless .. i will give it untill end of next week then if no letter i will call claims and get the ball rolling :-)

[coolmiller]

just to update rang yorkshire bank today to see what date my complaint letter was recieved by them .. the response was we have posted you and your claims company a letter yesterday which is 2nd class and can take 5 to 10 working days to arrive (10 days wtf ) anyway he whent on to tell me he didnt know the decision as its not on his screen and is confidential ..

 

he then told me that if any redress is due and the complaint is upheld that me and only me will recieve this as i and only i need to sign and return it to them .

 

well in my eyes that means its been refused as he already told me they sent claims company a letter too

 

guess all i can do now is wait till next week for the letter and then set the ball rolling for fos action

Edited May 25, 2012 by coolmiller

[coolmiller]

could it be that they have wrote to me with an settlement offer but still had to write to claims company to inform them that they have made an offer to make sure they are sticking within the timescale in the claims people eyes ?????

[ims21]

Could be...wait and see what turns up

[coolmiller]

ims RESULT not sure of next step sent you PM please reply

thanks kev

[ims21]

Hi

 

Got your PM......just going to have some nosebag and will be back a bit later

 

ims

[coolmiller]

nosebag ???

ah well i shall await your lordship

[ims21]

Hi

 

Yep....nosebag....food

 

Ok so in answer to your PM questions.

 

They have made an offer for the years paid before this was taken over by a mortgage. That principle is correct.

 

You would get back the amounts actually paid towards the PPI part of the loan plus the interest paid on that and 8% on each payment actually made running from the date of the payment to the date of settlement.

 

Now, when the loan was taken over by the mortgage, part of the balance taken over would have been the remaining PPI on the loan, less any rebate that may have been given (I would suggest that no rebate was given).age

 

So you had to borrow extra money on your mortgage to pay off part of the PPI on the loan. This is why they are saying that there will be an adjustment to the mortgage, to remove the residual PPI from it.

 

This is all based around the underlying principle that you must be put back in a position that you would have been in had the PPI not been added in the first place.

 

In order to work out the figures to see whether their offer is correct we would need the figures from the agreement. I see you were going to ask for the return of that document....did you ever get it back?

 

ims

[coolmiller]

ims ..

i have read a further couple of times and i see it like this

repayments of loan untill settles redress 2.4k

standard 8% 1.0k

 

then the tricky bit ... as your loan was settled by means of a mortgage i will deduct from your mortgage account 1.8k as this is the difference on what you paid into sed loan and the settlement figure .. upon your appceptance we will also recalculate any interest to your mortgage account

 

so all in all 5.2k RESULT me thinks but i only see 3.4k pay tax and the claims company

2 questions really

1 can pay off my mortgage as the mortgage paid the loan off ?? still paying the mortgage and still should be my money

2 will i have to pay claims % of whole amount even though i havent recieved it

oh and 3 will i have to pay tax on whole amount of 8 % or can i decuct the % of claims fee then pay 20% of that ??

[coolmiller]

in that case pal everything seem about fine to me ..just was wooried when i 1st read it that the off was 3.4 k and they was going to take 1.8 off that to pay my mortgage hence just leaving me with 1.6k

[ims21]

Hi

 

Ok I'll answer the questions in reverse order

 

The taxable portion of your award is only the 8% statutory interest...not the rest of it.

 

You will pay the claims company a percentage of the entire claim amount, both the physical refund and any adjustment made to the mortgage as a result of the residual PPI. So in effect this is the premium in full, the contractual interest paid and the 8%.

 

Now the bit that needs more work. Can you tell me whether your mortgage is a repayment mortgage or interest only?

 

The lender should put firm figures to you before you accept. It is not right that they say we will adjust the mortgage upon receipt of your acceptance if they haven't told you what the value of the adjustment is going to be. Bear in mind that if you have been making mortgage payments then the PPI part of those payments should come back to you by way of refund plus 8%. It is the future payments that should be affeceted by an adjustment to payments.

 

It is not possible to work out exactly what you should get back unless you can get that loan agreement back

[coolmiller]

the mortgage was repayment .. thers no ppi on the mortgage the mortgage was a 2nd (new) mortgage solely to pay off the loan

[coolmiller]

and my question realating to the tax man was ,,,, i jnow i have to pay 20% of the gran i got for my 8% intetrdy psrt as it is paid gross

but as the claims company will get 20% will i have to pay tax on 1k or 800.00 ??

[ims21]

Yes but part of that mortgage would have included residual PPI from the first loan and therefore you have been paying PPI on loan 1 through your mortgage.

 

Think of it this way...

 

You have a loan for £9,000 with PPI of £1,000 added to it so a total of £10,000 which you pay off at, say £100 per month. Let's assume the loan is interest free to avoid complication.

 

You make 10 payments and then convert the loan to a mortgage. 10 payments would mean you will have paid £1,000 off the loan leaving a balance of £9,000 which is refinanced into a mortgage. Part of that £9,000 is the PPI part of the loan.

 

In this example the PPI is 10% of the total loan so 10% of that £9,000 balance is the PPI part of the loan which of course is £900.

 

So if that PPI hadn't been in the loan to start with then you would have had to borrow £900 less on the mortgage to pay off the first loan.

 

So the fact that you had to borrow £900 more to pay of the PPI part of the loan means that some of the repayments you are making on the mortgage include a percentage towards that £900 part of the first loan.

[coolmiller]

so in a nut shell they have refunded that 1.8k that was part of the loan ppi ... all good and well but is it right that they can now just take it of the mortgage balance ??

forget the pm i jumped to page 2 lol i know im an idiot .that my thread title suggests hehe

[ims21]

If I read you right then no it isn't (unless there are arrears on the mortgage)

 

Any payments you have actually made towards the PPI should come back to you, both with regard to the original loan and the mortgage.

 

The adjustment to the mortgage should be for the, as yet, unpaid part of the PPI.