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PPI - Some Notes for Claimants..

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PAYMENT PROTECTION INSURANCE

 

 

 

Before reclaiming or cancelling PPI you should have a look at the following Notes and see what type of PPI you actually have. Always consider all the facts and figures before starting a claim.. Whatever you do Do Not Just Jump In without researching your own policy, and don’t be afraid to ask for help / advice on the forums on CAG.

 

 

There are basically 2 types of Payment protection Insurance policies.

 

1) Monthly paid premium (as used by most of the credit card companies)

These policies should not be a big problem to cancel; normally they will cancel this type of policy if you write to them or Phone them. Of course if you consider that you have been mis sold this type of policy you can of course try and reclaim all the premiums that have been made, plus claim the interest on each payment at the Contractual Interest Rate.

 

2) Single Premium Policy (these are the biggest rip off ones) These policies are

Paid for in full to the insurance company at the start of the policy. Most loan

Companies will finance the full cost of the policy by adding the cost onto your loan. What they do not tell you is that you will also be paying interest on that amount at the loan interest rate for the full term of the loan.

 

Example 1. PPI Cost £3300 Interest Rate 7.9%APR Interest payable over the 5 year loan = £1300 Actual cost of PPI cover £ 4600.00

 

Example 2 PPI Cost £3300 Interest Rate 7.9%APR Interest payable over the 15 year loan = £3913.00 Actual Cost of 5yr PPI Cover £ 7213.00

 

As some loans have variable APR the costs used in the above examples could be in fact a lot higher.

 

Most of this type of Policy will cover you for 60 Months (5yrs) so beware if you have taken out one of these policies and have a loan which runs over the 5 year period. As in example 2 you would require a further 2 * 5yr PPI policies to cover the full loan period.

 

I did one calculation on an original loan of £17,000.00 , when the PPI was added and calculated to cover the 15yr period; with an APR at 7.9% fixed the actual cost to repay the loan was calculated at almost £55,000.00.

 

Cancelling a single payment Policy, This can be a bit trickier than a standard monthly paid policy. These policies will offer a very small percentage of the premium should you just cancel it. An example of this is shown below. Their answer to this part is normally that the insurance premium pays more in the early stages of the loan as there is higher risk. (Yeah - higher risk to the lender and not the Customer)

 

£3300 policy which had been running for 3yrs, Refund of £97.00 if cancelled.

 

Some companies will state that the only way that you can cancel one of these policies is to refinance and settle the complete loan agreement with a new loan without PPI on the new loan. Some of the lenders will also try and fob you off with excuses like, you may not get a new loan at the same low %APR without PPI. Some will also state that you may not in fact be able to obtain a new loan from them at all; this of course is all scare tactics to try and make you change your mind about cancelling the loan etc. If your credit rating is not good then they will use this against you too.

 

In my own case I managed to obtain a new loan from another provider at a far better %APR (5.8%) rate without PPI, though they did really try and sell their PPI..lol. I also took out a stand alone PPI policy from an Independent provider at well under a tenth of the cost I was quoted from the new Lender. Personally I have nothing against PPI Insurance, in fact I think it is a good thing as long as it sold properly and not at an extortionate rate like it is by the major High Street Banks and Loan Companies.

 

3) Mis Sold Policy The mis selling of these policies is a major concern not just for

Consumer but in fact the FSA and the OFT are looking into this whole

matter.

 

Have you been Mis Sold PPI. (Some standard Conditions for PPI)

 

a) Payment Protection Insurance cannot be made a condition of obtaining a loan. (This is the most common reason for mis selling)

b) You are permantley resident within the United Kingdom

c) You are Over 18 and Under 65 at the commencement of your loan, and you will not reach the age of 70 during the insured term.

d) You are in Full time employment – Some policies define Full time employment as being working Over 16 Hours per week and that you have been in full time employment for at least 6 Months prior to the start date of the policy.

e) Pre Excisting Medical Conditions may also Invalidate your Policy

f) Some policies may cover if you are self employed.. Check your T & C first though.

 

** Latest Additions to be added to above (thanks Todge)**

 

1 You were not in work or self employed at the time of sale

 

2 You were told that you had to take the PPI out at the same time as the loan or not at all

 

3 You were not asked whether you had any other insurance which would cover the loan

 

4 You were not told you could buy PPI elsewhere to cover the loan

 

5 You were sold a policy which had age restrictions which you fell outside of

 

6 You were led to believe that Payment Protection Insurance was compulsory

 

7 You were told that you would stand more chance of getting the loan if you took the Payment Protection Insurance

 

8 It was not explained to you that there were certain exclusions within the policy that could affect you

 

9 You were pressured into buying the PPI

 

10 You paid upfront for the PPI but it was not explained that there were some PPI policies where you could pay monthly

 

11 Your PPI was an upfront premium and you repaid the loan early and received no refund

 

12 You increased your loan and the PPI was increased automatically

 

13 The Terms & Conditions of the small print were not fully explained to you

 

 

You should in the first instance read through the full terms and conditions of your Payment Protection Insurance Policy. If you do not have these I would personally advise you to contact the Insurer and request these. If you do have to contact the Insurer for a copy of the terms and conditions you will need to know the date that you signed up for the policy, Request a copy of the terms and conditions relating to the policy that they had in place on that date.

 

I would personally always deal with complaints regarding PPI by way of letter, unless you have the ability to record any telephone conversations regarding the complaint.

Obviously should you have to take the complaint to court, the more evidence you have in writing the better.

 

Some Interesting Facts Regarding PPI.

 

On some Single premium PPI policies the actual cost for the insurance can be a low as 10% of the cost charged by the lender …That’s a whopping 90% straight profit for the lender.. Plus of course the extra Interest that they will make.

 

Out of all the types of Insurances Policies available ( Car, Home etc) PPI has the lowest percentage of payout in claims, Making PPI the most profitable Insurance Policy currently on the market.

 

Payment Protection Insurance has the highest rate of claims for Mis Selling than any other Insurance policy available.

 

Most policies will only pay out for 12 Months maximum in any 1 claim.

 

 

I hope this has helped, If you have any queries please do not be afraid to ask for help or advise in the forum.

 

If you find any Interesting information relating to PPI I would be grateful if you could pass it on to me, I’m on a bit of a Mission with PPI..lol

 

Additions to Post 22/3/07..

 

 

Reclaim your PPI premiums

 

There's no need to pay someone a fee to pursue your mis-selling claim. By following our guide - and using our letter template - you can right the wrongs committed by your bank or lender. You will find the downloadable letters at the bottom of this page.

Here we explain how to decide whether you have a case for reclaiming your premiums, and how to go about it:

The background

Payment protection insurance generates billions of pounds for banks and building societies and is widely recognised as being routinely mis-sold. The policies are designed to repay a particular debt if you find yourself out of work. We know of many instances when borrowers have been forced to buy an expensive policy as a condition of being offered a loan.

{I:1}

Do you have a mis-selling claim?

• Being forced to buy a PPI policy in conjunction with a loan does not breach FSA guidelines. But the FSA says that fact does not exclude borrowers from making a mis-selling complaint to the Financial Ombudsman, who assesses whether the way the policy was sold was fair and reasonable.

Banks and lenders who subscribe to the Banking Code agree they will not force customers to also buy their payment protection insurance, but they can insist on them having some form of PPI.

We have heard a litany of complaints from borrowers who say unscrupulous salespeople told them they would not get a loan unless they signed up to the lender's own protection insurance. If this has happened to you, you should pursue the bank through its usual complaints process. If you have no success, the next step is to complain the Financial Ombudsman.

• You may also have a case for mis-selling if you have been sold a policy while you are self-employed, unemployed or retired – all of which make PPI void. PPI policies are valid only for people who are employed by someone else and the lender or insurer should have checked your employment status when they sold the policy.

• Most policies do not cover you for loss of income caused by a wide range of illnesses or ailments, including mental illness and back trouble, which keep thousands of people off work each year. A lender or insurer should warn you that illnesses like these, and other pre-existing conditions that might keep you off work, will not be covered.

• If a lender sells you a PPI policy with a card or loan, it significantly increases the interest rate you will be paying. Lenders are obliged to advertise the total APR so you know exactly how much your monthly repayments – including insurance – will be. If they haven't, you can pursue them for mis-selling.

The lender should also have explained to you the full cost of the policy, and how your monthly repayments without insurance would be affected by adding insurance to the loan or credit card agreement.

If your lender did not do any of these things, you may have a claim for mis-selling.

Additionally, you may have a claim if you have tried to cancel your PPI policy, and have been refused, or if you have cancelled the policy part-way through the loan period and received a smaller reduction in monthly payments than you were expecting.

 

 

Template Letter 1

 

 

[Your address]

The Complaints Department

[Lender’s address]

[Date]

 

Dear Sir/Madam,

 

Ref: [Your PPI policy number]

 

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

 

I took out a £xxx loan/credit card at your […. Branch] on [date] and also bought a payment protection policy which would cost me an extra £xxx over the life of the loan. [The name of the salesperson who sold me the policy is ...] The total amount of my premiums plus interest is £ xxxx.

 

I am [self-employed/work as a contractor/unemployed/retired] and therefore will not be eligible for any payments from the PPI if I find myself unable to meet my debt repayments.

 

Possible additional paragraphs – include the one which applies

 

 

[Your salesperson knew this at the time of sale but did not point out to me that this would make the insurance policy useless to me.]

 

 

or

 

[Your salesperson did not check my personal circumstances at the time of sale, which they are under obligation to do. If they had done, they would have realised that a PPI policy was useless to me.]

 

 

Insurers are under an obligation to ensure that the policy they are selling is appropriate to that customer and clearly, as my employment situation means I am unable to claim on the policy, you have not fulfilled this requirement.

 

I am requesting a full refund of all my insurance payments, plus interest, which total [£ xxx].

 

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.

 

Yours sincerely

 

 

[Your signature]

 

 

 

Template Letter 2

 

 

 

[Your address]

The Complaints Department

[Lender’s address]

[Date]

 

Dear Sir/Madam,

 

Ref – policy number

 

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

 

I took out a £xxx loan/credit card at your [branch name] branch on [date] and also bought a payment protection policy which would cost me an extra £xxx over the life of the loan. [The name of the salesperson who sold me the policy is …] The total amount of my premiums plus interest is £ xxxx.

 

When I took out the loan, I was told that my application would be refused if I did not also buy a PPI policy. The Financial Services Authority’s advice to consumers is that, while it does not breach FSA guidelines, a borrower should not be refused a loan if they choose not to buy an insurance policy.

 

Possible additional paragraphs – include any which apply to you

 

 

[i also told your salesperson that I had adequate insurance cover through a separate income protection policy.]

 

[i said I did not need the PPI as my employer provides a generous illness and redundancy package.]

 

[You are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in the quoted interest rate, which you did not do.]

 

[in forcing me to buy this policy, you have also breached paragraph 8.6 of the Banking Code, to which you are a signatory.]

 

I do not believe being forced to buy this policy as part of the loan was a fair and reasonable obligation as I did not need this insurance and said at the time of taking the loan that I did not want it.

 

 

I am requesting a full refund of all my insurance payments, plus interest, which total [£ xxx].

 

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.

 

Yours faithfully,

 

[Your signature]

 

 

Hope these additions are Helpful..

 

 

Ian

  • Haha 26

Lloyds TSB -PPI - Full refund . 05/09/06 :D:p (As Seen on TV) :p

Halifax settled in Full.. :D 22/09/06

TSB First Claim SETTLED IN FULL 19/10/06 :D

Second Claim to Lloyds TSB - Settled in Full

Firstplus - early settlement interest charges - Challenged the use of the rule of 78 - SETTLED IN FULL 12/1/07

PPI - GE Money / Purpleloans / Firstplus - Now Settled after 1 year long hard fight.

 

 

 

If my post has helped you, please click the scales! :grin:

 

Anything said is my opinion and how I understand the law, always consult professional legal advice before taking something to court.

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Hi reidnet!

 

Nice post very helpful!

 

What I cannot get my head around is the statement that a loan cannot be made conditional on taking out PPI. This would seem to be just and fair but I cannot find anything in consumer regs, common, or statue law that deals with this. Can you point me in the direction of any decided cases? The only thing I can come up with is the concept of economic duress or unconscionable behavior but this is in equity, not common law, which is a tricky area. Any legal eagles amongst the mods?

 

What is clear, as you say, is the illegality of adding the PPI premium to the loan and then charging interest on the total sum. For info to others the case is: London North Securities Ltd v Mr and would seem to give us more ammunition.

 

I think also that if they fail to warn you about single premium front end loading it might be possible to get them on that duty of disclosure etc. but this is all a bit soft in comparison with the bank charge issue where the law is much clearer.

 

What do you think?

 

I have sent my prelim off but as yet no reply!

 

Bicester1


Bicester1

 

MBNA WON £623

:)

GM Card Won £580

:)

Nat West CC Won £525.08

:)

Nat West Bank Won £2346.60:)

Lloyds PPI LBA

Barclaycard defence received. Trial date 30th July. Barclays missed deadline for servicing and filing of their bundle! Going to try for strikeout or summary disposal

HBOS about to issue N1

LLoys Bank LBA

 

I am not a lawyer. Get trained professional advice if unsure of your legal position. If my advice is helpful please tip my scales!

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Hi Bicester1,

I read the above case some time ago, Im sure I have a printed copy of it in one of my now many folders..lol. Im not too sure if there is actual common law relating to the PPI situation. I know that this type of Policy is supposed to always be optional and cannot be made a condition of receiving a lon or service. Perhaps someone within the Insurance industry may manage to clear this up once and for all.

I have confirmation of this fact in writting from the FSA in a reply to one of my many complaints.

 

I am almost certain (from my own experience) that these companies prey on you when you are in a vulnriable position, they know that you obviously need the loan for sure and take advantage of the situation by implying that if the PPI is not taken out then you wont get the loan. When you look at the commision rates and profit that these policies generate it is not hard to understand why there is so much hard selling of this product from the major lenders. Profit on some of these policies to the lender can be as much as 90% of your premium, this of course can be backed up by the fact that you can buy PPI from and independant insurance company for anything up to a tenth of the cost that these lenders charge.

 

With both the FSA and the OFT currently investigating this market, eventually we may find that these lenders have to change the way they sell and price their policies. Of course I have no doubt that should the FSA make a ruling on this it would only affect new policies and not help the many thousands of people that have been caught but this to date.

 

The most common answer I have seen when you complain about this to the lender is that you agreed to the PPI so tuff luck. They of course know that many consumers have been , Bullied, pressureised, mislead and lied to when they are desperately trying to obtain loans. These companies are nothing more than parasites in my eyes.

 

I am truley hoping that with the Publicity being raised on this matter will eventually let as many consumers know all the pitfalls etc of this disgraceful market by the major lenders. I am at the momment in discussion with another 2 national newspapers who are planning features on PPI.

 

Ian

  • Haha 2

Lloyds TSB -PPI - Full refund . 05/09/06 :D:p (As Seen on TV) :p

Halifax settled in Full.. :D 22/09/06

TSB First Claim SETTLED IN FULL 19/10/06 :D

Second Claim to Lloyds TSB - Settled in Full

Firstplus - early settlement interest charges - Challenged the use of the rule of 78 - SETTLED IN FULL 12/1/07

PPI - GE Money / Purpleloans / Firstplus - Now Settled after 1 year long hard fight.

 

 

 

If my post has helped you, please click the scales! :grin:

 

Anything said is my opinion and how I understand the law, always consult professional legal advice before taking something to court.

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Hi

 

Yes you are absolutely right. I've only had PPI once from Lloyds and that was when I needed a loan and had no other options. I was told that if I wanted the loan I had to take the insurance!

 

Equity might give some relief but this is fairly specialized law and I understand that the courts might not be too sympathetic as a claimant in equity must have "clean hands!" There is a concept of one party in a contract behaving in an unconscionable manner

 

The other option would be under contract law in that contracts signed under duress are not enforceable but I'm not a lawyer!

 

It does seem that you are the only one on this site who has won with PPI but I guess we are where the bank charges forum was a few years ago. It does seem that momentum is building and I think this is going to be the next big financial scandal after endowments, pensions and bank charges!

 

I must say that I was totally naive and actually trusted my bank! I guess I still had an image of "my" bank manager like Captain Mannering, instead of the snake oil salesmen they seem to have become whose sole raison d'etre seems to be to help themselves to as much of our hard earned cash as they can.

 

I think that this forum will grow and grow. We need some templates and a library, the OFT report link I posted doesn't seem to work now, as it is a distinct issue from Bank Charges. Pezboy did refer to some internal industry rules - we need to see if we can get hold of them. Any insiders lurking out there!

 

You say you have it in writing from the FSA that policies should be optional any chance of you posting this! I assume tho that the FSA regs only apply since they assumed responsability for regulating the industry.

 

Bicester1


Bicester1

 

MBNA WON £623

:)

GM Card Won £580

:)

Nat West CC Won £525.08

:)

Nat West Bank Won £2346.60:)

Lloyds PPI LBA

Barclaycard defence received. Trial date 30th July. Barclays missed deadline for servicing and filing of their bundle! Going to try for strikeout or summary disposal

HBOS about to issue N1

LLoys Bank LBA

 

I am not a lawyer. Get trained professional advice if unsure of your legal position. If my advice is helpful please tip my scales!

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Hi,

 

 

If I get some time in the next few days I will have a look at making up thread with Template letters.

 

Ian


Lloyds TSB -PPI - Full refund . 05/09/06 :D:p (As Seen on TV) :p

Halifax settled in Full.. :D 22/09/06

TSB First Claim SETTLED IN FULL 19/10/06 :D

Second Claim to Lloyds TSB - Settled in Full

Firstplus - early settlement interest charges - Challenged the use of the rule of 78 - SETTLED IN FULL 12/1/07

PPI - GE Money / Purpleloans / Firstplus - Now Settled after 1 year long hard fight.

 

 

 

If my post has helped you, please click the scales! :grin:

 

Anything said is my opinion and how I understand the law, always consult professional legal advice before taking something to court.

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Hi.

I was just wondering whether we have any basic template's for the particulars when making a claim for PPI.

 

Many thanks in advance

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Hi

 

This is my prelim which you are well come to cut and past as you need. See also reidnets prelim.

 

http://www.consumeractiongroup.co.uk/forum/ppi/54073-bicester1-lloydsppi-pelim-etc.html?highlight=Bicester1

 

Hope this helps.

 

Bicester1


Bicester1

 

MBNA WON £623

:)

GM Card Won £580

:)

Nat West CC Won £525.08

:)

Nat West Bank Won £2346.60:)

Lloyds PPI LBA

Barclaycard defence received. Trial date 30th July. Barclays missed deadline for servicing and filing of their bundle! Going to try for strikeout or summary disposal

HBOS about to issue N1

LLoys Bank LBA

 

I am not a lawyer. Get trained professional advice if unsure of your legal position. If my advice is helpful please tip my scales!

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I like it, I like it a lot. I especially like the bit about the claims ratio of 20% against all other insurances 84% payout's. what is it trying to say, I think it's saying that PPI is a complete rip off and that something seriously needs to be done about it. :confused:

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Is 'repayment cover' on a credit card the same as PPI. My husband has 'repayment cover' on his Halifax credit card and the cost goes up and down.


[sIGPIC][/sIGPIC]If you think my post was helpful, please feel free to click my scales

 

 

A prudent question is one-half of wisdom.

 

:D

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I would say that 'repayment cover' is in fact PPI under a disguised name..

 

Ian


Lloyds TSB -PPI - Full refund . 05/09/06 :D:p (As Seen on TV) :p

Halifax settled in Full.. :D 22/09/06

TSB First Claim SETTLED IN FULL 19/10/06 :D

Second Claim to Lloyds TSB - Settled in Full

Firstplus - early settlement interest charges - Challenged the use of the rule of 78 - SETTLED IN FULL 12/1/07

PPI - GE Money / Purpleloans / Firstplus - Now Settled after 1 year long hard fight.

 

 

 

If my post has helped you, please click the scales! :grin:

 

Anything said is my opinion and how I understand the law, always consult professional legal advice before taking something to court.

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From TimesOnline

 

 

 

Banks braced for billions in claims

 

The City watchdog has given consumers the green light to claim for ‘useless’ debt insurance, which many people don’t even know they have. Once they do, the revolt could be bigger than bank charges. By Clare Francis

 

Banks face being hit with billions of pounds in compensation claims for “useless” debt insurance in a consumer revolt that could be bigger than that over bank charges.

Millions of people with overpriced loan insurance — supposed to cover repayments if you can’t work — have been given the green light to claim for mis-selling after two announcements from the Financial Services Authority (FSA) in the past month.

Insiders say the scale of the scandal could eventually dwarf bank charges and even endowment mis-selling. There are some 20m loan insurance policies worth £5.5 billion in Britain, and one industry insider, who wished to remain anonymous, thinks as many as 70 per cent could have been mis-sold. If so, the industry could face claims worth up to £3.85 billion from 14m people.

By contrast, about 2m people are thought to be reclaiming ‘illegal’ overdraft charges at a cost to the industry of up to £1.2 billion a year, according to Credit Suisse, an investment bank.

function pictureGalleryPopup(pubUr l,articleId) { var newWin = window.open(pubUrl+'templ ate/2.0-0/element/pictureGalleryPopup.jsp?i d='+articleId+'&&offset=0 &&sectionName=MoneyCon sum erAffairs','mywindow','me nubar=0,resizable=0,width =615,height=655'); }Related Links

 

·Protection cover in the dock again

·The biggest scandal since endowments

Consumers have not yet started to revolt against debt cover, though, because so few know they have it: firms often add it to your loan without asking.

This is exactly what happened to Nasim Kanji, 58, a university lecturer from Oxhey in Hertford-shire. She did not realize she had been charged £9,000 for insurance for a £62,000 loan secured on her home until she went to Chase de Vere Mortgage Management, a broker, to remortgage.

Not only did the policy account for 15 per cent of the loan, but she would never had needed it anyway because she had savings set aside in case she lost her job.

Kanji said: “I had no idea I had been sold the insurance until it was pointed out by my adviser. I was horrified when I found out how much it had cost me. There is no way I would have taken out such insurance because I have assets that would cover my payments were anything to happen which stopped me working.”

Simon Tyler at Chase de Vere said: “This was terrible advice and there is no way such a policy was suitable.”

Consumers are therefore being urged to check their loan, credit-card and mortgage agreements to see if they have been sold protection insurance without realising it. If so, you have a very good case to lodge a claim.

An announcement last week by the FSA, the City watchdog, could open the floodgates. It said that people who had been sold single-premium policies, where the cost of the cover is paid upfront and often added to the loan, could now be eligible for refunds if they cancelled the loan part-way through the term.

In the past insurers pocketed the money. Now customers who have cancelled policies and got very little back are being urged to complain to their providers.

Matthew Turley, 30, pictured with his girlfriend, Rachael House, and their two children, Mitchell, 10, and Mia, 3, could be entitled to a refund. He took out a car loan for £4,700, but was charged an additional £5,612 for debt cover. Once this and the interest were added to the loan, his repayments would have totalled £14,537 — three times the amount he borrowed. This was not explained to him but he soon realised the mistake and repaid the loan. Even then he still had to pay £6,740 — £2,000 more than he borrowed.

He is in the process of trying to reclaim the £2,000 plus the interest he was charged.

The scandal goes beyond single-premium policies, though. The FSA indicated last month it thinks all payment-protection insurance has been systematically mis-sold for several years.

In a speech last month, Stuart King of the FSA said: “Our work in the PPI [payment-protection insurance] market has demonstrated it has not been sold correctly over a prolonged period. We have seen too many real cases of individuals who do not appear to have been fairly treated when purchasing PPI.”

Claims firms such as Brunel Franklin think the scandal could be even bigger than the FSA realises. They are just starting to win payouts for clients who have been mis-sold debt insurance, and they reckon the average refund could be in the region of £2,000 to £3,000, compared with about £1,400 for bank charges.

Ian Allison of Conkers, Brunel’s claims-handling firm for PPI, said: “The FSA’s speech was pretty explicit for a regulator, but I still don’t think it realises how huge this will be. We are just seeing the tip of the iceberg.”

The Competition Commission is also looking into PPI, following an inquiry by the Office of Fair Trading that concluded consumers had been stung for some £1 billion through the sale of overpriced debt cover. Since only one in four policies pay out, the cost to the consumer is even higher.

About 7m PPI policies are sold each year by banks and building societies when people take out loans, mortgages and credit cards. High-street stores also push the cover to customers buying electrical goods using instore finance arrangements. However, consumers can pay up to 10 times more for cover from these firms than they would from a stand-alone provider such as the Post Office or Paymentcare.

The policies are designed to cover your loan repayments if you can’t work due to an accident, sickness or redundancy, but they have many exclusions that are rarely explained at the point of sale. For example, PPI does not cover the self-employed, students or housewives. Nor does it pay out if you are sacked or have preexisting conditions that are not declared on the application form. Certain illnesses, such as stress and back pain, are also routinely excluded.

Teresa Fritz at Which?, the consumer lobbyist, said: “When the insurance was sold, the adviser should have explained it and investigated whether it was suitable for you. In most cases this hasn’t happened, so anyone who has PPI and doesn’t think it’s right for him or her should complain to the company that sold it.”

Ways to reclaim your money

Payment protection insurance — was I mis-sold?

If you were sold a policy that you later discovered was unsuitable, perhaps because you are self-employed, you can claim for mis-selling. You can also claim if you were never told about the cover or it was not explained fully.

What does the FSA’s latest announcement mean?

It relates to single-premium PPI policies where customers are charged a lump sum for cover that is added to their loan. The FSA estimates about a third of policies have been sold in this way. Many include ‘nil-refund’ clauses — if the cover is cancelled during the term, the policyholder is not eligible for a refund. This has been banned.

All new single-premium policies must include a ‘partial refund’ clause. The size of the refund will depend on how far into the term you are when you cancel. People who have made claims on their policies will not be eligible. Firms must also apply partial-refund conditions to all existing policies. Millions of customers who have cancelled policies in the past and received no refund are now being urged to ask their insurers for their money back.

So how do I lodge a claim?

Write to the company that sold you the policy. Ask for the cost of the PPI, plus any interest, to be refunded. You may also be eligible for claiming lost payouts, if you were turned down on a policy that you should never have been sold. The firm must reply within eight weeks. If it fails to do so, or you are not satisfied with its response, take your case to the Financial Ombudsman Service (financial-ombudsman.org.uk) or the small-claims court.

Bank charges — am I eligible?

If you have been charged a penalty fee for going overdrawn without permission or for having a direct debit refused, you can ask for the money back. If the Office of Fair Trading imposes a cap on the amount that can be charged, you are likely to get only the difference back. In the meantime, banks are refunding the full amount.

 

This refers to all insurances including PPI's and Mortgage Indemnity Guarantees which are often sold as 'House Insurance'

 

 

Tide

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Is Payment Protection Insurance (PPI) the same as Payment Protection Premium (PPP)? I have been sold one with a £28000 secured load with Barclayloan at 10.9% APR which has increased to 11+% as a result of all the recent rate rises. The amount of the PPP is £5680.05 and based on what you have said, I will be paying a huge amount of money in interest on this amount. I have every intention of claiming if I can.......Can you advise please?

 

Thanks

 

El

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Is Payment Protection Insurance (PPI) the same as Payment Protection Premium (PPP)? I have been sold one with a £28000 secured load with Barclayloan at 10.9% APR which has increased to 11+% as a result of all the recent rate rises. The amount of the PPP is £5680.05 and based on what you have said, I will be paying a huge amount of money in interest on this amount. I have every intention of claiming if I can.......Can you advise please?

 

Thanks

 

El

 

Hello,

 

Yes it is the same, they have al different ways of selling it


If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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This the information from the FSA website, it clearly puts the onus on the seller to ensure that everything is properly advised and done in the best interests of the customer - even on "non-advised" sales:

 

 

 

What is the difference between an advised and non- advised sale of PPI?

 

In short, you give advice when you make a personal recommendation to the customer. A non-advised sale is when no personal recommendation is made to the customer.

 

For all sales, both advised and non-advised, a firm must pay due regards to the interest of its customers to ensure that appropriate information and disclosures are made to the client and that communications are clear fair and not misleading.

 

A non-advised sale cannot be led by the adviser and they can only confirm that they offer a number of products, or one product, that the customer chooses themselves.

 

More information is available in our factsheet: Advised and non-advised sales.


Alan, Derby, UK.

 

 

 

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

 

 

 

________________________________

 

Sorry, but I cannot deal with your case by PM - please ask questions in your own thread. If you do not get a reply within 48 hours send a PM, with a link to the relevant thread, to any Site Team Member.

 

DO NOT SEND QUESTIONS ABOUT YOUR CLAIM TO ADMIN, or our WEBMASTER - YOU WILL NOT RECEIVE A REPLY.

 

Advice given is purely my opinion, and is not based on any legal training.

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Here's a copy of the GISC guidelines for Private Customers. This is from their Rules which were operative between 03/07/2000 and 14/01/2005.

 

Page1GISC.jpg

Page2GISC.jpg

Page3GISC.jpg

Page4GISC.jpg


Bank and credit card reclaims - £9,806

Sainsburys CCA non-compliance with FOS;

Natwest reclaim of £340 in progress;

Egg credit card reclaim in progress

 

 

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Also, from the Treating Customers Fairly section of the FSA website, there is a section focusing on PPI. Where poor practice, it deems, included:

 

  • Not explaining the PPI product clearly, including significant exclusions and limitations of the policy.
  • Failing to ensure the customer was eligible to claim against the product.
  • In advised sales, not finding out whether the PPI policy was suitable for the customer
  • In advised sales, poorly put together statements of demands and needs that did not explain the firm's recommendation or tailor the information to the individual customer.
  • Inadequate systems and controls in place around the sales process. These could result in sales staff not following the firm's own processes, and ultimately for inappropriate sales practices.

Payment Protection Insurance (PPI)

 

I can't stress how important the TCF Initiative is in the eyes of the FSA - the cases at the bottom certainly make interesting reading!


Bank and credit card reclaims - £9,806

Sainsburys CCA non-compliance with FOS;

Natwest reclaim of £340 in progress;

Egg credit card reclaim in progress

 

 

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I have no legal training and the advice I offer is a matter of support. Before you commit to any Legal action you are advised to contact a qualified legal practitioner.

------------------------------------------------

Bank charge successes:

Halifax - Full settlement incl interest.

HSBC - Settlement, goodwill no admission of liability about 75% of claim.

RBS - Settlement, goodwill no admission of liability about 70% of claim.

2 ongoing claims for bank charges with HSBC with more to come. (Supreme Court ruling could have upset these claims) They did :mad:

PPI Successes

PPI 4 settlements on 9 loans. FOS involvement on 7 added on the 8 % Statutory interest another 30% to both.

2 claims settled in full with LV without FOS involvement.

2 claims settled in full with HSBC without FOS involvement

 

PPI Claims ongoing with:

Cap one Now with the FOS

Barclays. Paid up today 24/04/10 cheque received for over £4,500 and in the bank.

LTSB still have to decide on this as their SAR production was abysmal. Papers data mixed up documents missing etc

 

1 Complaint not upheld by FOS they said it was ICO issue. Complaint upheld by ICO. See this..

Post 290 from

***RBS PPI Claim Long fight but, WON***

 

Please do not PM me for advice as it may be sometime before I can respond.

 

Keep at them. Do not give way and do not accept all they tell you, they will delay and stall for as long as they can to prevent repaying you your mis-sold PPI.

 

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Was this thread ever done?

 

phatram, check out the link below, alanalana has put together some useful links that might help you.

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/135060-links.html


Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy -

HERE

2: Take back control of your finances -

Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors?

Read Here

4: Staying Calm About Debt

Read Here

5: Forum rules - These have been updated -

Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

 

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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also

 

this thread is getting rather big and very slow to load...............

 

PLEASE USE IT FOR REF ONLY

 

ALL USERS ARE REMINDED TO START YOUR OWN THREAD

 

simply click on the blue payment protection insurance (PPI) right up the top of this thread

 

then there is a button below the announcements on the left to start a new thread.

 

if you already have 'your' claim running in here , then send MAKE YOUR OWN THREAD NOW.

 

and post me or the siteteam the numbers of the posts you wish dragged across into it.

 

PLEASE

 

ONLY POST HERE IF YOUR MSG IS RELEVENT GLOBALLY TO ASSISTING PEOPLE IN PROVIDING A GOOD NOTE ON A NEW CLAIM>

 

dx

siteteam


PLEASE DONT HIT QUOTE IF THE LAST POST IS THE ONE YOU ARE REPLYING TOO.

MAKES A THREAD TWICE AS LONG TO SCROLL THROUGH!

please do not post jpg images directly to a topic..USE PDF ....READ UPLOAD.

 

WE CAN'T GIVE ADVICE BY PM - IF YOU SEND ME A LINK TO YOUR THREAD - I WILL BE HAPPY TO OFFER HELP THERE

Single Premium PPI Q&A Read Here

Reclaim mis-sold PPI Read Here

Reclaim Bank Account, Loan & Credit Card Charges Read Here

The CAG Interest Tutorial Read Here

spreadsheets 

 

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All posts that were not essential to the original purpose of this thread and posts that should have been in their own threads have been moved to...

 

 

PPI - Some notes for Claimants - Frequently Asked Questions & Discussion thread


Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy -

HERE

2: Take back control of your finances -

Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors?

Read Here

4: Staying Calm About Debt

Read Here

5: Forum rules - These have been updated -

Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

 

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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