PPI and mis-sold

[lizzy40]

I'm trying to put a case together regarding being mis sold PPI when I took out a personal loan. I know now I was mis sold because PPi was added when I didn't request it, but I'm also not sure if the bank concerned gave me the correct information as to what was best for me. I already had an existing personal loan for 5,000 with NO PPI which I had taken out over 5 years, after a year needed to borrow another 1,000.

 

Now the first loan was cancelled and the second set with PPI.

 

Now should the existing loan been left running and an additional loan taken out for the £1000. This all happened about 3 years ago and since I've been reading this site it has got me wondering. I'm sure this has made me financially worse off then originally. The APR was higher then the first loan also.

 

Something doesn't seen right.

 

Can anyone help!

[reidnet]

I'm trying to put a case together regarding being mis sold PPI when I took out a personal loan. I know now I was mis sold because PPi was added when I didn't request it, but I'm also not sure if the bank concerned gave me the correct information as to what was best for me. I already had an existing personal loan for 5,000 with NO PPI which I had taken out over 5 years, after a year needed to borrow another 1,000.

 

Now the first loan was cancelled and the second set with PPI.

 

Now should the existing loan been left running and an additional loan taken out for the £1000. This all happened about 3 years ago and since I've been reading this site it has got me wondering. I'm sure this has made me financially worse off then originally. The APR was higher then the first loan also.

 

Something doesn't seen right.

 

Can anyone help!

 

 

You are right there, something doesn't seem right. sounds a bit like they have ripped you off by clearing your original loan and giving you one at a higher interest rate and added PPI, Bet someone had a nice wee bonus for that One.

 

Which Bank was it with ?

 

Ian

[lizzy40]

Hi Ian, Thanks for your help, It's with the woolwich.

 

So do you think that the original loan should have been left running and an additional one set up for the extra money? It's going back over 3 years now and I was pretty desparate for the extra money at the time so I wasn't thinking clearly.

 

I have already asked for a refund as I believe that the policy wasn't any good for me as I'm self employed and on the grounds that they knew I didn't want the PPI in the first place because it wasn't on the first loan as I didn't want it and their reponse is I had signed the agreement which I had, they kindly sent a copy to show me therefore I should have cancelled it but I never. All I can put it done to that I was just grateful to have been given the money and not thinking straight.

 

Regarding the cancellation of first loan and setting up new loan is this the correct procedure of the banking system. I'm sure I must have been worse off for doing this I need to do my sums and work it out!

 

Its so frastrating when you know nothing about the financial world and the advise banks give; we have to believe its right we don't assume theirs anything wrong because they know best unfortunatly its sad to say my views are changing.

[lizzy40]

Does anyone have any advise on the above - I have sent off my complaint regarding being mis sold PPI and the bank involved dont seem interested in all of my concerns they have said that I had the chance to cancel the PPI when I signed the agreement and I didn't so thats my fault. Has anyone got any ideas?

[wednesday1867]

Doesnt matter really, if your exempt your exempt surely? I dont know either way if self employment means your exempt from their policies, can you check on the terms and conditions of the policy?

 

On the loan application, you have to state your employment status, if you said Self Employed, and being self employed makes you exempt, why didnt their staff member know this and why did they sell a policy you were exempt from the day you signed the agreement?

 

Send something along the lines of " your staff member knowingly added PPI to my loan, even though i had stated i am self employed which automatically means the PPI is of no use to me. The day i signed for the loan i have been exempt from the policy, so i require a full refund of all payments and associated interest on those payments. If i dont receive a satisfactory response within 14 days, i will be taking my complaint further.

 

Not sure who you can complain to, FOS might be able to help you.

 

Im not a legal whizz, hopefully someone else will be able to offer some assistance

[hellhasnofury]

Does anyone have any advise on the above - I have sent off my complaint regarding being mis sold PPI and the bank involved dont seem interested in all of my concerns they have said that I had the chance to cancel the PPI when I signed the agreement and I didn't so thats my fault. Has anyone got any ideas?

 

Hello Lizzy,

 

The bank would want to be interested, because they are so aware of the consequences. Yes they would have to pay it back.

 

You have to be determined in reclaiming back your mis-sld ppi. They want you to go away and think it is all your fault.

 

Can you give us a few more details please.

 

A breakdown of the 1st loan. How much was outstanding and if they gave you a interest rebate on it.

 

Date of new loan. Total amount of loan

Interest applied to new loan

Cost of ppi

Interest applied to ppi

Total cost of credit

Term it ran for

APR of new loan.

 

I would be very helpful to see these figures please.

 

I will help if I can:grin: Just don't give up:eek: That what they want

[lizzy40]

Good news!

 

I received letter on Saturday regarding PPI miss selling complaint. They have agreed that I was miss sold under ther grounds that if I become unemployed involuntarily that the policy wouldn't cover me.

 

They have stated they need to refund the insurance premium and accrued interest to the loan they haven't stated how much and then refinanced with remaining balance left after the PPI has been refunded.

 

How will I know they have refunded the correct amount?

 

This letter also only mentions they will refund under the grounds of not being covered under involuntarily unemployment but there where other issues to my miss selling i.e I wasn't given the option to shop around and wasn't given the option to pay a monthly prem instead of a one off single payment, but I suppose why would have they suggested that at the time they where fully aware I wasn't covered anyway as I was self employed?

 

Any advise on what I should do next?

 

Thanks so much for all your help...

[hellhasnofury]

Good news!

 

I received letter on Saturday regarding PPI miss selling complaint. They have agreed that I was miss sold under ther grounds that if I become unemployed involuntarily that the policy wouldn't cover me.

 

They have stated they need to refund the insurance premium and accrued interest to the loan they haven't stated how much and then refinanced with remaining balance left after the PPI has been refunded.

 

How will I know they have refunded the correct amount?

 

This letter also only mentions they will refund under the grounds of not being covered under involuntarily unemployment but there where other issues to my miss selling i.e I wasn't given the option to shop around and wasn't given the option to pay a monthly prem instead of a one off single payment, but I suppose why would have they suggested that at the time they where fully aware I wasn't covered anyway as I was self employed?

 

Any advise on what I should do next?

 

Thanks so much for all your help...

 

Hello,

 

MMMmmmhhh this looks good. If the policy was mis-sold, it was mis-sold. End of so you want the full amount of the premium, the interest on it, and contractual interest from the date the loan started to the date they give you it back.

 

Write to them and ask for a full breakdown of the amount they are going to refund you. be warned they will start at the minimum and hope you accept it. Don't:eek:

 

It is up to you how you wish the refund to be made. You can have it deducted of the loan balance (do not under any circumstances agree to sign a new credit agreement) or you can have a cheque payable to yourself.

 

Remember this is your money, your refund to do with what you wish. Do not let them control this anymore.

[lizzy40]

Thanks Hellhasnofury,

 

Just one more question, the full amount of the premium with the interest which was added to my loan was £1614.60 what is the contractual interest and has this got to be added to the above figure?

 

Thanks so much for your advise....

[hellhasnofury]

Thanks Hellhasnofury,

 

Just one more question, the full amount of the premium with the interest which was added to my loan was £1614.60 what is the contractual interest and has this got to be added to the above figure?

 

Thanks so much for your advise....

Hello Lizzy,

 

In answer to your question. If the full amount of the premium with the interest they applied to the loan was £1,614.60. Right they took this money from you. So you then cannot benefit from it. If this money was sat in a building society/bank account, you would have received interest on it. You didn't. They have had the benefit on it.

 

Contractual interest. This is asking for the extra amount of interest on top of what you are claiming at the rate they charged you. From the date the money was taken. Date of loan to today or the date they pay up. The interest would be charged at their rate daily.

 

Example

 

Date of loan 23/12/2005

amount of ppi and interest £1,614.60

Interest rate 8.9% is £260.23( you add this to your total)

So the amount you want is £1,614.60 plus £260.23 = £1,874.83

 

 

I do hope this is a bit clearer than mud.

 

If you give the date of the loan and the interest rate they applied, I can work it out for you. Or you could do it yourself. Go to the main page click on bank template letters, find the interest spreadsheet and your away.

[lizzy40]

Thank you so much for explanning it in easy terms...

 

The interest rate I was charged was 14.9% over 60 months

and the loan started 31 / 7 / 2003

 

Thank you once again you have been so helpful....

[hellhasnofury]

Thank you so much for explanning it in easy terms...

 

The interest rate I was charged was 14.9% over 60 months

and the loan started 31 / 7 / 2003

 

Thank you once again you have been so helpful....

 

Hello Lizzy,

 

Well according to my calculations

 

Date of loan 31/07/2003

Interest rate 14.9%

 

premium plus interest charged £1,614.60

Contractual interest at 14.9% £1,013.05

 

Total amount £2,627.65

 

They will probably argue a bit on that one, but stand firm.

 

If this case had gone to court, the court would have allowed you 8% Statutory interest. So this would be your next move.

 

Date of loan 31/07/2003

premium plus interest charged £1,614.60

Statutory interest a 8% £ 543.92

 

Total amount £2,158.52

 

Your shout and get angry and tell them how disgusted you are with them for mis-selling it to you in the first place. They have caused you hardship by mis-selling it to you

[lizzy40]

Wow that does sound a lot but you are right they have admitted I had been miss sold they are at fault and they have earn't interest on my money which could have been in my savings account....

 

I will keep those figures in mind I'm still waiting for the offer I will keep you up dated....

 

Nearly there....

 

I have another loan with PPI which the same has happened this is a business loan (same bank)! do you think the same will apply, the only thing is I don't have all the fingures?

 

Thanks again....

[hellhasnofury]

Wow that does sound a lot but you are right they have admitted I had been miss sold they are at fault and they have earn't interest on my money which could have been in my savings account....

 

I will keep those figures in mind I'm still waiting for the offer I will keep you up dated....

 

Nearly there....

 

I have another loan with PPI which the same has happened this is a business loan (same bank)! do you think the same will apply, the only thing is I don't have all the fingures?

 

Thanks again....

 

Hello Lizzy,

 

I would not wait for them to come back and tell you what they are prepared to offer you. I would be writing to them and tell them what you are prepared to accept. Take control of this. Don't let them They are the ones who are in the wrong here. You decide

 

As for the other loan with ppi. Send a separate letter for that information. Did you do a SAR????

[lizzy40]

Okay I shall get a letter off stating the amount with contractual interest and see how we go.

 

No I haven't done anything yet regarding my business loan, wasn't sure how to request the information I needed. I shall write to them asking for the loan details....

 

Many thanks...

[hellhasnofury]

Okay I shall get a letter off stating the amount with contractual interest and see how we go.

 

No I haven't done anything yet regarding my business loan, wasn't sure how to request the information I needed. I shall write to them asking for the loan details....

 

Many thanks...

 

Hello Lizzy,

 

Did you ever request a SAR from them?????

[lizzy40]

No I haven't, do I need to do this?

[lizzy40]

Received letter this morning regarding my refund.

 

It isn't the amount I was hoping for however it is still a refund.

 

Thay have refunded the mis sold ppi plus the interest which I paid upfront but no contractual interest was added from the date the loan was taken out I thought they had to give this?

 

Also they have deducted £67.76 because I cancelled the direct debit mandate this I cancelled because when they said they will refund the ppi this would pay of the loan outstanding therefore I dont need to make anymore monthly payments. They seem to be a law to themself where on earth did they come up with £67.76?

 

Any advise on what I should do and where I stand regarding the contractual interest

[loukim]

Received letter this morning regarding my refund.

 

It isn't the amount I was hoping for however it is still a refund.

 

Thay have refunded the mis sold ppi plus the interest which I paid upfront but no contractual interest was added from the date the loan was taken out I thought they had to give this?

 

Also they have deducted £67.76 because I cancelled the direct debit mandate this I cancelled because when they said they will refund the ppi this would pay of the loan outstanding therefore I dont need to make anymore monthly payments. They seem to be a law to themself where on earth did they come up with £67.76?

 

Any advise on what I should do and where I stand regarding the contractual interest

O lizzy

Did they not agree given you contractual interest ? Have you tried ringing them and have you got any letters or proof that they agreed to pay this ..... they seem to make there rules up as they go along

Just when you thought you had it all sorted they do this let me know how you get on x

[lizzy40]

I have just rang but the person I need to speak with wasn't there so I'm waiting for a call.

 

They have given me the full amount of PPI plus the interest which was applied at the time of loan taken out but no contractual interest not only that but what really annoyed me was the £67.67 for a cancelled direct debit, isn't it the procedure to cancel a direct debit when you no longer need to make a payments its there fault they hadn't refunded the money sooner they had 28 days notice.

 

Let you know more when I get my call.

[lizzy40]

Why isn't anything straight forward.

 

I just had the phone call I was waiting for from Barclays.

 

Well told him I wasn't happy with the amount of refund as he hadn't encluded the contractral interest and he said he will send a final reponse letter and I can take it up with the FOS. He did also say that he got told off for giving me the refund as I was covered by this policy now I'm starting to worry in case they take it back. Can they do that? Why would he refund the money if I was covered ?

 

I thought most if not all policies don't cover for involuntary unemployment if self employed.

 

Don't know what to do now to persue or just accept what they have offered and cut my loses.

[loukim]

Why isn't anything straight forward.

 

I just had the phone call I was waiting for from Barclays.

 

Well told him I wasn't happy with the amount of refund as he hadn't encluded the contractral interest and he said he will send a final reponse letter and I can take it up with the FOS. He did also say that he got told off for giving me the refund as I was covered by this policy now I'm starting to worry in case they take it back. Can they do that? Why would he refund the money if I was covered ?

 

I thought most if not all policies don't cover for involuntary unemployment if self employed.

 

Don't know what to do now to persue or just accept what they have offered and cut my loses.

Well Lizzy i dont know what to say really:?

Have you got anything in writting to say they agreed that they had mis-sold the PPi ?( if so dont worry as they may be saying this just to see if you would back off ) and if so does it says what interest they have aloud you ?

As for his comment about being told off ( silly little school boy tut tut! ) was the person who sold you your PPi given a slap on the wrist??

I think if i was you take what their offering for now but make it clear to them that you will now be taken the matter up with FOS to be able to claim your interest and reporting them to FSA as they have clearly not gone by the regulations that are set out not only on the mis-selling but also when it comes to be treated fare.

 

Let me know x

[loukim]

Well Lizzy i dont know what to say really:?

Have you got anything in writting to say they agreed that they had mis-sold the PPi ?( if so dont worry as they may be saying this just to see if you would back off ) and if so does it says what interest they have aloud you ?

As for his comment about being told off ( silly little school boy tut tut! ) was the person who sold you your PPi given a slap on the wrist??

I think if i was you take what their offering for now but make it clear to them that you will now be taken the matter up with FOS to be able to claim your interest and reporting them to FSA as they have clearly not gone by the regulations that are set out not only on the mis-selling but also when it comes to be treated fare.

 

Let me know x

Sorry Lizzy gone gone through yout notes to refresh myself..... i see you have got a letter to say they mis-sold so they can't back out of that as you have got in in black and white

[loukim]

Sorry Lizzy gone gone through yout notes to refresh myself..... i see you have got a letter to say they mis-sold so they can't back out of that as you have got in in black and white

Any news ????

[lizzy40]

Well I'm very happy with the refund as such but was advised to get the contractual interest added which they didn't pay. So at present I'm waiting for my last response letter however I have already passed to the FOS.

 

Nothing again is clear just like the bank charges, should they pay contractual interest or shouldn't they, my belief is yes they have had my money up front for 4 years if I'd put it into an savings account I would have earnt money on it it only seems fair but banks don't do fair...

 

I should think it will take a while now to get it resolved as the main part has been paid thankfully....

 

Will keep you up dated....