PPI claim against SPPL/GE Money

[jalex_uk]

I posted this in a different thread and was kindly advised to start a new thread about it. Any help you can offer would be most appreciated!

 

I was sold PPI on a loan from SPPL back in June 2001. The loan was for £65k, and they added 9100 onto it for PPI in a lump sum, making the total amount of the loan £74.1k.

They then charged interest on the entire amount., on a monthly basis.

The insurance policy was non-refundable, and was due to last for 5 years (a much shorter period that the entire term of the loan). It wasn't even part-refundable in the event that I paid back the loan early (which I did 2 years later).

 

The loan was an "Unregulated Credit Agreement" secured on my property.

 

I was told when I agreed to the PPI that it was necessary to ensure the loan went through (which I since understand is untrue).

 

So I have two questions:

 

1) Was I mis-sold this policy by being told I had to take out the PPI to make sure the loan was approved?

 

2) Does that fact that they added the PPI premium to the loan amount and charged interest on the total amount make the entire policy illegal and liable to be refunded?

 

3) Does the fact that it was an "Unregulated Credit Agreement" not covered by the CCA mean that I don't have a claim?

 

Many thanks to anyone who can offer any help (and to those who already offered their comments in the other thread)!

[jalex_uk]

Further to my last post, something else occurred to me:

 

1) If I can reclaim the PPI then presumable I can also recoup the interest I paid on the portion of the loan representing the PPI for the duration the loan was outstanding before I paid it off.

 

2) I wonder whether the fact that the PPI was added to the loan as a lump sum, on which interest was then charged monthly, makes the entire agreement null and void, as the total stated as "Credit" (ie. the sum lent) includes both the PPI and the loan, whereas my understanding now is that the PPI fee should have been under a separate "charges" section. The very integrity of the credit agreement is therefore suspect, surely, as the total credit is wrong, and the total charges are also wrong.

 

If the agreement can be show to be null and void, I wonder if in addition to reclaiming my PPI premium + interest charged on that premium + stat interest, I might also be able to claim back all the interest I paid on the loan itself seeing as the agreement itself, if my point above stood up legally, would be null and void.

 

Any thoughts?

[hellhasnofury]

I posted this in a different thread and was kindly advised to start a new thread about it. Any help you can offer would be most appreciated!

 

I was sold PPI on a loan from SPPL back in June 2001. The loan was for £65k, and they added 9100 onto it for PPI in a lump sum, making the total amount of the loan £74.1k.

They then charged interest on the entire amount., on a monthly basis.

The insurance policy was non-refundable, and was due to last for 5 years (a much shorter period that the entire term of the loan). It wasn't even part-refundable in the event that I paid back the loan early (which I did 2 years later).

 

The loan was an "Unregulated Credit Agreement" secured on my property.

 

I was told when I agreed to the PPI that it was necessary to ensure the loan went through (which I since understand is untrue).

 

So I have two questions:

 

1) Was I mis-sold this policy by being told I had to take out the PPI to make sure the loan was approved?

 

2) Does that fact that they added the PPI premium to the loan amount and charged interest on the total amount make the entire policy illegal and liable to be refunded?

 

3) Does the fact that it was an "Unregulated Credit Agreement" not covered by the CCA mean that I don't have a claim?

 

Many thanks to anyone who can offer any help (and to those who already offered their comments in the other thread)!

 

Hello see if you can find the answer to no 3 in here

Consumer Credit Act (1974)

 

If not start a thread in the debt section with your questions. they seem to know everthing about loans etc. I have gained a lot of knowledge reading different threads in different sections, If you see the name peterbard, maybe send him a private message. he is extremely knowledgable.

 

May also answer your question re agreement being null and void. That aspect would be interesting

[jalex_uk]

hhnf, thanks for the reply - I've been told the "Unregulated" nature of the agreement is not a hindrance to launching a claim, which is good news. Now the question is, do I write to the broker, or the lender, or both jointly, demanding repayment? All negotiations were done with the broker, and all paperwork was submitted by the broker (AFAIK) filled out on the lender's forms.

 

Edit: spoke to the broker who put me through to the Compliance Dept, who were extremely friendly and reasonable at this stage, and said that even prior to me writing to them they would begin an investigation into my specific complaints (namely the mis-selling and the way the agreement was structured with the PPI lump premium including with the total loan). The FSA/Fo guidelines give them 4 weeks to respond in full, with a further 4 weeks if they need it to complete their investigation in full. To be honest, he couldn't have been more helpful - at this stage I suppose its very easy for them to sound reasonable - so while I've got my eyes open to the distinct possibility I might get a run-around, at least they seem to be treating the matter seriously, and decently, at the point of first contact.

 

I've yet to look into the possibility that the entire agreement could be rendered null and void, leaving open the possibility of reclaiming all and any interest payments made on the loan, but that's a more complex matter and needs some legal eagles to help out with

[hellhasnofury]

hhnf, thanks for the reply - I've been told the "Unregulated" nature of the agreement is not a hindrance to launching a claim, which is good news. Now the question is, do I write to the broker, or the lender, or both jointly, demanding repayment? All negotiations were done with the broker, and all paperwork was submitted by the broker (AFAIK) filled out on the lender's forms.

 

Edit: spoke to the broker who put me through to the Compliance Dept, who were extremely friendly and reasonable at this stage, and said that even prior to me writing to them they would begin an investigation into my specific complaints (namely the mis-selling and the way the agreement was structured with the PPI lump premium including with the total loan). The FSA/Fo guidelines give them 4 weeks to respond in full, with a further 4 weeks if they need it to complete their investigation in full. To be honest, he couldn't have been more helpful - at this stage I suppose its very easy for them to sound reasonable - so while I've got my eyes open to the distinct possibility I might get a run-around, at least they seem to be treating the matter seriously, and decently, at the point of first contact.

 

I've yet to look into the possibility that the entire agreement could be rendered null and void, leaving open the possibility of reclaiming all and any interest payments made on the loan, but that's a more complex matter and needs some legal eagles to help out with

 

Hello,

 

They will be nice when they write to you in four weeks telling you they have fully investigated your complaint and you are not going to get your money back. Or offer you a goodwill gesture.

 

They are all the same, its like a bit of a game, and you have to start as you mean to go on:D It is not the individual responsible its the institute. Although you will probably get lots of letters from different department by different people.

 

I would sent your prelim letter to them and let the games commence. Do all contact with them by letter and keep them on file.

 

As for the loan becoming null and void maybe send laiste a personal message she seems very knowledgeable on legal matters

 

Laiste vbmenu_register("postmenu_667376", true);

 

Good luck and keep us all posted for info

[jalex_uk]

OK, as far as I can gather, the inclusion of the entire PPI premium in a lump sum in the total credit section of the agreement form does in itself render the entire agreement void doesn't it, because all subsequent aspects of it are wrong:

 

1) The total loan is wrong

2) The monthly payment is wrong, because it includes interest on the entire amount (capital plus PPI premium)

3) The APR is thus also wrong, because it is worked out using the inclusion of the PPI Premium.

 

This is on top of the fact that I was mis-sold the policy by being told it was necessary to get the loan approved.

 

Surely I am entitled to claim back not just the PPI premium, but all payments I made under the loan agreement too (at least, the interest part of my payments) because the entire agreement is wrong in every aspect?

 

This would entitle me to claim back the PPI Premium, all interest I repaid (I had the loan for a year before I repaid it), contractual interest on that entire amount based on the principle of unjust enrichment etc, and then if I proceed to court, 8% Statutory Interest on the entire amount.

 

Lastly, it was the broker who sold me the PPI and arranged the loan/mortagge (which was for £65K - the PPI premium was £9K on top of that). Do I approach the broker (Compass Finance - now part of the Debt Advisory Group) for repayment of the PPI and the lender for a refund of all interest payments I made, or do I sue the broker on both counts? Or the Lender on both counts? Or should I just name them jointly on any action?

 

Any thoughts on this?

[reidnet]

Mine is a similar position to yours regarding the Broker side, My loan etc was with Firstplus but the Loan and PPI was arranged through Purpleloans which is now Part of GE Money.. It is GE Money that I am in the process of taking to court.

 

If the Broker arranged the Loan and sold you the PPI then you would be better going after the Broker, after all it was the Broker that Mis-Sold the PPI.

 

Ian

[jalex_uk]

Reidnet,

 

How far along are you? The issue of PPI claims seems to be slow moving and not particularly documented yet.

 

Can someone pleaseeee point me to the ruling, court case, order, SI, or anything else where it actually demonstrates or states that the process of adding a lump sum PPI premium to the loan figure and calling that total the "Total Credit" or "Total Advance" etc, and then charging interest on top of that, is actually unlawful? I'm having a hard time finding anything conclusive other than obscure and lengthy (and rather case specific) judgements.

 

I thought this was ruled on in the House of Lords recently? Does anyone have a link to that on-line, or can copy it to me (preferably with a plain english translation )

 

Many thanks, Jalex

[reidnet]

Im at Court Stage with GE Money, Both AQ's have now been passed onto the District Judge for Direction. Though GE have used Bullying and scare Tacticts all the way through the claim, so hopefully should hear from the Court within the next 10 Days or so and hopefully get a Court Date.

 

I have just had a quick look through my notes regarding the total cost of credit bit, Im sure this is part of the Consumer Credit Act.. When I find it I will post it for you..

 

Ian

[jalex_uk]

I have just had a quick look through my notes regarding the total cost of credit bit, Im sure this is part of the Consumer Credit Act.. When I find it I will post it for you..

Ian

 

Thanks so much I'm just about to embark on this and want to ensure I get my entire strategy right from the beginning. I'm also looking into whether I might be able to claim all my interest payments back on the loan for the year I had it before I paid it off (2002) on the basis that the entire agreement is void because all the figures in it were wrong. This would also enable me to reclaim the 6-months' interest "early redemption fee" I had to pay too, along with the PPI premium itself. WHich with contractual interest of 14.5% over 6 years, and stat interest on top of that, would make for a nice claim of, oh... about £40,000

[hellhasnofury]

Thanks so much I'm just about to embark on this and want to ensure I get my entire strategy right from the beginning. I'm also looking into whether I might be able to claim all my interest payments back on the loan for the year I had it before I paid it off (2002) on the basis that the entire agreement is void because all the figures in it were wrong. This would also enable me to reclaim the 6-months' interest "early redemption fee" I had to pay too, along with the PPI premium itself. WHich with contractual interest of 14.5% over 6 years, and stat interest on top of that, would make for a nice claim of, oh... about £40,000

 

Hello Jalex,

 

How are things with you, good I hope

 

Can you keep us posted:D

[reidnet]

Hi Jalex and Hell,

Just a bit of an Update,

 

I have today recieved an Order from Wolverhampton County Court ,

 

" District Judge Hearne has considered the statements of case and allocation questionaires submitted in this claim and has decided that a hearing is necessary before a final decision about allocation can be made,

District Judge Hearne orsers you to attend at 11.00 AM on the 22 May 2007 at Wolverhampton County Court, Pipers Row, Wolverhampton."

There is a note too, Note if you fail to attend the hearing, the court may order you to pay the costs of the other party, or parties that do attend. Failure to pay those costs within the time stated may lead to your statement of case being Struck out.

 

So looks like its time to Pack the Overnight Bag , Load the GE Money complaint paperwork in the artic..lol (well Car but there is a lot of paperwork) and head off to Sunny Wolverhampton.

 

I only posted info about this on my GE thread late this afternoon, and within an hour or so of posting another CAG member has kindly offered acommadation for the night and also to come to court to support me.. Now that is what I call a result in its own. This of course has also made me feel a lot better about attending court in a foreign part of the country..lol, but now I feel that I am not going it alone.. Thanks Bach..

 

Ian

 

It Just goes to show that CAG is doing a great job and working very well as a support and avice forum.

[jalex_uk]

Hey good luck! Can't wait to hear how this works out. I've just had my response from the broker I used for the SPPL loan. I've had a copy of my application form back, and it clearly shows I declared I was self-employed, so the PPI was worthless beyond covering me for health-related problems, and was thus clearly mis-sold.

The loan was conditional on the PPI, and they're trying to say I agreed to it by signing it, and also trying to claim it was optional, when it wasn't. Why would I have agreed to pay £9100 for a PPI policy that didn't cover me as I was self-employed, if I'd been given a choice?!

I feel pretty confident of winning this one. I'll be claiming back the PPI, the interested they charged me on it, and contractual interest/restitution of profits, making for a total of approximately £30,000 (6 years compound interest at the contractual rate).

Keep me updated - I'm really curious to see how GE try and deal with you. I'm about to issue a claim against GE for penalty charges too

[hellhasnofury]

Hey good luck! Can't wait to hear how this works out. I've just had my response from the broker I used for the SPPL loan. I've had a copy of my application form back, and it clearly shows I declared I was self-employed, so the PPI was worthless beyond covering me for health-related problems, and was thus clearly mis-sold.

The loan was conditional on the PPI, and they're trying to say I agreed to it by signing it, and also trying to claim it was optional, when it wasn't. Why would I have agreed to pay £9100 for a PPI policy that didn't cover me as I was self-employed, if I'd been given a choice?!

I feel pretty confident of winning this one. I'll be claiming back the PPI, the interested they charged me on it, and contractual interest/restitution of profits, making for a total of approximately £30,000 (6 years compound interest at the contractual rate).

Keep me updated - I'm really curious to see how GE try and deal with you. I'm about to issue a claim against GE for penalty charges too

 

Hello Jalex,

 

How absolutely wonderful, you go get them:-D

 

Good luck and wis:-D hes to you

[reidnet]

12 Days and counting..lol

 

[casbah]

SO? what happened?

[kennyh]

I'm just starting out on a ppi quest and so am playing 'catch-up'.

Just to repeat casbah's request - WHAT HAPPENED - my hair has already fallen out so I don't want ulcers as well!!

[hellhasnofury]

Hello

 

In some cases, posters may not undate their thread for many reasons. Some claimants may be sworn to secrecy about the results of a claim

[kennyh]

A couple of years ago we were getting similar 'straitjackets' but as I recall many of these eventually fell by the wayside. Still some ideas of success would be useful - other than the exhuberant yells of those on the success thread!

Hope, at least some, are honouring the CAG with a 'cut' of the gains.

[kennyh]

Did anyone actually manage to point Jalex in the direction of whether 'front end loading' of a loan with ppi costs is unlawful- please??