PPI Preliminary Letter

[Paule]

PLEASE ENSURE YOU HAVE READ THE NOTES BEFORE YOU PROCEED

Ok This is the Preliminary Base letter, which is followed by a post containing the main mis-selling points.

This is to encourage people to write a full letter, rather than list points, which will make the letter more personal

There is an example letter as well, to illustrate this.

So heres the base letter

My Name
My Street
My Town
My Post Code

Company Name
Company Street
Company Town
Company Post Code

Today’s Date

Dear Sir/Madam

Re: Account / Policy number: 123456789

I have been looking at my agreement with you, reference above and have noted that I purchased Payment Protection Insurance from you.
I am now of the belief that I was mis-sold this policy due to.............

Continue writing with details of which issues apply to you, rather than just listing the issue. Expand on details where applicable.

The main issues are

• Employment Issues
• Medical Issues
• General Health Issues
• Lender Issues
• Single Premium Issues
• Policy Cancellation Issues
• General Issues

A brief outline of the issues is in next post, use which you feel are appropriate to your case

What I expect from you is justification that the policy was suitable for me based on my circumstances and an explanation as to how your suitability criteria works. If you cannot justify this to my satisfaction I request a full refund of all premiums paid to date as well as interest on these payments.
As I believe I have been deprived of this money I also expect an interest element to be added to each sum, at a suitable rate and using a suitable calculation method, as a compensatory gesture.

In respect of cancellation of a policy may I draw your attention to the following reports from the FSA, namely, 'The sale of payment protection insurance - results of thematic work, November 2005' & 'The Sale of Payment Protection Insurance - results of follow-up thematic work, October 2006'' that state "When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan.". This means that any new loan is on the same or better terms and does not detriment me in any way and that this is to be done without making a new search on my credit file

I expect a swift response to this letter within 14 days, containing either your full justification or notice that you will be refunding these payments.

If I do not receive a satisfactory response I will issue another letter notifying you of my intention to take further action if the matter is not resolved within a further 14 days. After this limit has passed I will be either contacting the Financial Ombudsman to investigate my complaint or issuing court proceedings.

Yours faithfully,

Signature

Name

[Paule]

PPI Preliminary Letter - Main Issues

The Main Issues

I was mis-sold this policy due to.............

Employment Issues

being self employed when I took out the policy and this was made aware to your member of staff when the policy was sold.

being self employed when I took out the policy and your member of staff did not ask me about my employment status when the policy was sold.

knowing I [was / knew I was soon to be] unemployed when I took out the policy and this was made aware to your member of staff when the policy was sold.

knowing I [was / knew I was soon to be] unemployed when I took out the policy and your member of staff did not ask me about my employment status when the policy was sold.

knowing I [was / knew I was soon to be] [retired / over the age limit] when I took out the policy and this was made aware to your member of staff my age when the policy was sold.

Medical Issues

the fact that your member of staff did not ask me about any previous medical conditions when the policy was sold.

the fact that I made your member of staff aware that I had previous medical conditions and they did not inform me of any effects this could have on the policy.

General Health Issues

having now read the terms of the policy I have noticed that the medical condition of insert your condition is not covered under the terms and conditions and I informed your member of staff that I had this condition but they did not inform me of any effects this could have on the policy.

having now read the terms of the policy I have noticed that the medical condition of insert your condition is not covered and your member of staff was made aware of this and did not advise me of potential exclusions when the policy was sold.

Lender Issues

becoming aware that you have been fined by the FSA for failing to treat your customers fairly when selling Payment Protection Insurance and therefore do not believe that my policy was sold in my best interests.

Single Premium Issues

paying a single premium for my policy but did not see it through to the end of it’s initial term after paying back my loan earlier than planned and I informed you of this at the time.

paying a single premium for my policy but did not see it through to the end of it’s initial term after cancelling the insurance before the end of my loan agreement on the and I informed you of this at the time.

paying a single premium for my policy but did not see it through to the end of it’s initial term after a change in my circumstances meant I was no longer eligible for the insurance and I informed you of this at the time.

Policy Cancellation Issues

the fact that I contacted you on insert date and you informed me that I could not cancel the policy. As the FSA has now stated ‘no refund’ terms are considered unfair I would like my original cancellation request to be honored and any fees or charges to be refunded.

the fact that I contacted you on insert date and you informed me that I could only cancel the policy if I took out a new credit agreement. As the FSA has now stated ‘no refund’ terms are considered unfair I would like my original cancellation request to be honored and any fees incurred as a result of taking out a new agreement to be refunded.

General Issues

not being given the correct information when the policy was sold to me, as (examples below)

• it was stated / implied that taking out the policy would assist in my application for credit.
• your agent was so pushy in selling me the policy so that I felt I had to accept.
• your agent did not advise me that the policy was only optional and I have since realised that I have alternative insurance cover.
• your agent stated / implied that I would not get the credit associated with it unless I accepted the policy.
• your agent did not provide me with the full information as to what the policy would and would not cover.
• I am concerned that your agent who sold me the policy has no financial background and therefore they were not in a position to sell the policy in my best interests.
• having recently looked at the paperwork for our joint loan / credit card / store card I have noticed that only name of person covered is fully covered by the policy and name of person not covered is either not entitled to claim for all sections of the policy or is not covered at all, when I was informed / led to believe that all parties were equally entitled to the insurance cover.
• having recently looked at the paperwork for my loan / credit card / store card I now realise that I have been paying for insurance that I did not know I had taken out so could not have been explained to me.

[Paule]

PPI Preliminary Letter - Example Letter

Example Letter with 4 reasons highlighted

PKea
Local Street
Manchester
M11 3FF

Bodgit & Scarper
High Street
Big City
W2 1AQ

26th August 2008

Dear Sir/Madam

Re: Account / Policy number: 123456789

I have been looking at my agreement with you, reference above and have noted that I purchased Payment Protection Insurance from you.
I am now of the belief that I was mis-sold this policy due to being self employed when I took out the policy and this was made aware to your member of staff when the policy was sold. I have now read your terms and conditions and they state that I would not be able to claim due to my circumstances. I was also not given the correct information when this policy was sold to me because your agent stated that I would not get the credit associated with it unless I accepted the policy. This leads me to believe that your agent who sold me the policy has no financial background and therefore they were not in a position to sell the policy in my best interests.

What I expect from you is justification that the policy was suitable for me based on my circumstances and an explanation as to how your suitability criteria works. If you cannot justify this to my satisfaction I request a full refund of all premiums paid to date as well as interest on these payments.
As I believe I have been deprived of this money I also expect an interest element to be added to each sum, at a suitable rate and using a suitable calculation method, as a compensatory gesture.

In respect of cancellation of a policy may I draw your attention to the following reports from the FSA, namely, 'The sale of payment protection insurance - results of thematic work, November 2005' & 'The Sale of Payment Protection Insurance - results of follow-up thematic work, October 2006'' that state "When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan.". This means that any new loan is on the same or better terms and does not detriment me in any way and that this is to be done without making a new search on my credit file

I expect a swift response to this letter within 14 days, containing either your full justification or notice that you will be refunding these payments.

If I do not receive a satisfactory response I will issue another letter notifying you of my intention to take further action if the matter is not resolved within a further 14 days. After this limit has passed I will be either contacting the Financial Ombudsman to investigate my complaint or issuing court proceedings.

Yours faithfully,

PKea

PKea

[Paule]

Re: PPI Preliminary Letter

This letter to be followed up with the Letter Before Action