Egg Mis-sold me a Top-Up Loan

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

hey big fella, how ya doing?
cheers for the advice.
I know I should file under "I" when DCAs write just now but I just can't resist responding to them. When Brian Carter eventually writes a letter before action (I am advised they are the 'solicitors' for Freddos), I will use your wording.
DS
ps no response yet from Egg regarding the PPI claim.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Egg have offered me the following PPI compensation:

Top-Up Loan (loan 2) £0.00
Original loan (loan 1) £469.32
Credit Card £665.86

The concern is that their offer might be an attempt to prevent my claim for the carry forward of the mis-sold PPI element to loan 2. Bill has worked this out to be £819.47. So that part of my claim has been ignored by Egg. Well the FOS may well have to adjudicate on this but I want to give Egg one last chance to rectify matters.

Here is my proposed letter to the OC, who, incidentally, are continuing debt recovery activities via Fredericksons whilst all this is being negotiated. Any thoughts on the content / accuracy of the letter would be welcome.

Dear Mr Palpatine,

Having now taken the opportunity to review matters, I seek to clarify my claim for compensation regarding the PPI element contained in loan 2. This will assist matters concerning the re-scheduling of the account and in agreeing the future monthly repayments. In any event, this letter will form the basis of my position for adjudication by the Financial Ombudsman if you remain unwilling to correspond.

Credit Card Account - Settlement

Firstly, with regard to my claim for PPI compensation on the cc account, since the closing balance did not contain any PPI because the PPI was charged monthly and paid monthly (and was not charged to the account as an initial fixed amount), I am prepared to accept the compensatory offer of £665.86 for the cc account on a full and final basis. This sum can be credited to my account with immediate effect and this letter can be regarded as authority for you on the basis of my acceptance.

Loan 1 - Clarification

Secondly, I am only prepared to accept the offer of £469.32 as the compensatory offer of PPI on the loan 1 account provided that this offer does not include any element of the PPI transferred as part of the principle to the loan 1 account . To be clear, the offer of £469.32 must not negate my claim for compensation of the 'carry-forward' element of PPI to the loan 2 account.

That is why I need to be sure that I know exactly what your offer includes. To this end can you please confirm in writing what the offer includes and also provide me with a breakdown of your calculations for the refund figure of £469.32 on account .

Loan 2 – Claim and Re-scheduling

The PPI mis-sold with loan 1 was a single premium (fixed amount) of £1085.70. Each month, I paid a portion of this off, along with a portion of account interest which was applied to it. Because £1085.70 is 17.84% of the total loan advance of £6085.70, then 17.84% of every payment made toward the account balance is PPI. The final settlement payment of £4593.42 is simply treated as another payment - albeit the final one - and thus contains 17.84% of PPI as well, which comes to £819.47. Now, the monthly repayments were made by me so I am entitled to a refund of the PPI element of those repayments.

The final payment of £4593.42 was made by consolidating it into account 23636531. Therefore, of the opening balance of loan 2 account £4593.42 is DIRECTLY ATTRIBUTED to the settlement of the loan 1 account ./ However, had the PPI not been sold, then this amount would have been 17.85% LOWER than this (ie., £819.47 LESS).

Therefore, of the opening balance of the loan 2 account I treat the PPI element of £819.47 CONTAINED WITHIN IT as if it were a single premium PPI. As each repayment was made, this was being slowly paid off in exactly the same way as the loan 1 account PPI. I hereby reclaim it in the same way. The difference here is that the loan is still active and of course I have been paying reduced payments due to personal hardship.

I am happy for you to refund the £819.47 toward the arrears of the loan 2 account or in the alternbatve for the agreed monthly repayments to be reduced by 8.72%. This is because £819.47 is 8.72% of the total loan advance of £6085.70, so 8.72% of every payment on the loan is PPI.

To expand and clarify point numbered 2 in my letter to you of 2010, I hereby make the following proposal for the remedy of this dispute insofar as rescheduling the loan 2 account is concerned:

· Reduce the principle sum by the PPI “element” of £819.47

Resolution Proposals in Summary

I repeat that the purpose of this letter is to set out my position in the light of your offers to settle my claims for mis-sold PPI. You are aware of the impact of the PPI on the balance for loan 2.

1. The refund for both amounts of mis-sold PPI totalling £1,135.18 to be credited to loan 2
2. The refund of £819.47 balance PPI element also to be credited to loan 2.
3. The Default dated to be removed from my credit files as this was for in accurate sum and is in breach of the Data Protection Act.
4. Cease all debt collection activities.

Yours sincerely,

The Debt Star

[Turboman]

Re: Egg Mis-sold me a Top-Up Loan

Sorry Debt Star

I promised you & Bill in Simiantics I would to read over yours again

Been so hectic since I got back on here--as usual I've fallen behind schedule--as I have with Nelliepops new strategy

Will try harder this weekend

Turbo

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

No probs, Turbo - we're working separately to some extent at present, but helping each other with specifics when needed. Seems the best way at present, as there are several multi-account PPI claims on the go ATM.

Well done with that, DS. You seem to have a good grasp of the mechanics of this, now. The letter looks good to me - just a few comments I've added in red.

Dear Mr Palpatine,

Having now taken the opportunity to review matters, I seek to clarify my claim for compensation regarding the PPI element contained in loan 2. This will assist matters concerning the re-scheduling of the account and in agreeing the future monthly repayments. In any event, this letter will form the basis of my position for adjudication by the Financial Ombudsman if you remain unwilling to correspond.

Credit Card Account - Settlement

Firstly, with regard to my claim for PPI compensation on the cc account, since the closing balance did not contain any PPI because the PPI was charged monthly and paid monthly (and was not charged to the account as an initial fixed amount), I am prepared to accept the compensatory offer of £665.86 for the cc account on a full and final basis. This sum can be credited to my account with immediate effect and this letter can be regarded as authority for you on the basis of my acceptance.

Loan 1 - Clarification

Secondly, I am only prepared to accept the offer of £469.32 as the compensatory offer of PPI on the loan 1 account provided that this offer does not include any element of the PPI transferred as part of the principle to the loan 1 account . [Loan 2 account.]To be clear, the offer of £469.32 must not negate my claim for compensation of the 'carry-forward' element of PPI to the loan 2 account.
[principAL]
That is why I need to be sure that I know exactly what your offer includes. To this end can you please confirm in writing what the offer includes and also provide me with a breakdown of your calculations for the refund figure of £469.32 on account .

Loan 2 – Claim and Re-scheduling

The PPI mis-sold with loan 1 was a single premium (fixed amount) of £1085.70. Each month, I paid a portion of this off, along with a portion of account interest which was applied to it. Because £1085.70 is 17.84% of the total loan advance of £6085.70, then 17.84% of every payment made toward the account balance is PPI. The final settlement payment of £4593.42 is simply treated as another payment - albeit the final one - and thus contains 17.84% of PPI as well, which comes to £819.47. Now, the monthly repayments were made by me so I am entitled to a refund of the PPI element of those repayments.

The final payment of £4593.42 was made by consolidating it into account 23636531. Therefore, of the opening balance of loan 2 account £4593.42 is DIRECTLY ATTRIBUTED to the settlement of the loan 1 account ./ However, had the PPI not been sold, then this amount would have been 17.85% LOWER than this (ie., £819.47 LESS).

Therefore, of the opening balance of the loan 2 account I treat the PPI element of £819.47 CONTAINED WITHIN IT as if it were a single premium PPI. As each repayment was made, this was being slowly paid off in exactly the same way as the loan 1 account PPI. I hereby reclaim it in the same way. The difference here is that the loan is still active and of course I have been paying reduced payments due to personal hardship.

I am happy for you to refund the £819.47 toward the arrears of the loan 2 account or in the alternbatve for the agreed monthly repayments to be reduced by 8.72%. This is because £819.47 is 8.72% of the total loan advance of £6085.70, so 8.72% of every payment on the loan is PPI.
I wouldn't suggest this myself, DS., as you are not claiming any 8% interest by doing this. I would suggest "I therefore request a refund of 8.72% of the repayments made to loan 2 so far, plus 8% interest on each of those apportioned payments. Additionally, I request that the remaining loan balance is similarly reduced by 8.72%, and thus the agreed repayments are reduced by 8.72%. This is because £819.47 is 8.72% of the total loan advance of £6085.70, so 8.72% of every payment on the loan is PPI.
To expand and clarify point numbered 2 in my letter to you of 2010, I hereby make the following proposal for the remedy of this dispute insofar as rescheduling the loan 2 account is concerned:

· Reduce the principle sum by the PPI “element” of £819.47
No !!! This negates the above reclaim of 8.72% of the total loan advance.
Resolution Proposals in Summary

I repeat that the purpose of this letter is to set out my position in the light of your offers to settle my claims for mis-sold PPI. You are aware of the impact of the PPI on the balance for loan 2.

1. The refund for both amounts of mis-sold PPI totalling £1,135.18 to be credited to loan 2
Not quite. "The refund of the PPI contained in all loan repayments made so far to both accounts, (plus 8% interest upon them), which may be used toward reducing loan 2 balance." Don't be too specific with the total amount.
2. The refund of £819.47 balance PPI element also to be credited to loan 2.
No - as stated above. "The remaining balance of Loan 2 to be reduced by 8.72%, effectively removing the PPI element from it. Any amounts being used toward reducing this balance are to be applied AFTER the 8.72% reduction."
3. The Default dated to be removed from my credit files as this was for in accurate sum and is in breach of the Data Protection Act.
4. Cease all debt collection activities.

Yours sincerely,

The Debt Star

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Hi Bill. Thanks for your post. When you say

I would suggest "I therefore request a refund of 8.72% of the repayments made to loan 2 so far, plus 8% interest on each of those apportioned payments. Additionally, I request that the remaining loan balance is similarly reduced by 8.72%, and thus the agreed repayments are reduced by 8.72%. This is because £819.47 is 8.72% of the total loan advance of £6085.70, so 8.72% of every payment on the loan is PPI.

do you know what the figure is? or are we asking Egg to work that out?

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

ok, here is the re-worded version of my letter taking Bill's suggested wording into account. The only rhing missing is a calculation of what the 8.72% plus 8% interest claim is, but presumably we ask Egg to work that out??

Here it is...

Dear Darth Sidious,

Having now taken the opportunity to review matters, I seek to clarify my claim for compensation regarding the PPI element contained in loan 2. This will assist matters concerning the re-scheduling of the account and in agreeing the future monthly repayments. In any event, this letter will form the basis of my position for adjudication by the Financial Ombudsman if you remain unwilling to correspond.

Can you also please ensure that you also disinstruct your debt collectors, Fredericksons International, while this dispute is being adjudicated.

CC - Settlement

Firstly, with regard to my claim for PPI compensation on the cc, since the closing balance did not contain any PPI because the PPI was charged monthly and paid monthly (and was not charged to the account as an initial fixed amount), I am prepared to accept the compensatory offer of £665.86 for the cc on a full and final basis. This sum can be credited to loan 2 with immediate effect and this letter can be regarded as authority for you on the basis of my acceptance.

loan 1 - Clarification

Secondly, I am only prepared to accept the offer of £469.32 as the compensatory offer of PPI on loan 1 provided that this offer does not include any element of the PPI transferred as part of the principle to loan 2. To be clear, the offer of £469.32 must not negate my claim for compensation of the 'carry-forward' element of PPI to loan 2.

That is why I need to be sure that I know exactly what your offer includes. To this end can you please confirm in writing what the offer includes and also provide me with a breakdown of your calculations for the refund figure of £469.32 on loan 1.

loan 2 – Claim and Re-scheduling

The PPI mis-sold with loan 2 was a single premium (fixed amount) of £1085.70. Each month, I paid a portion of this off, along with a portion of account interest which was applied to it. Because £1085.70 is 17.84% of the total loan advance of £6085.70, then 17.84% of every payment made toward the account balance is PPI. The final settlement payment of £4593.42 is simply treated as another payment - albeit the final one - and thus contains 17.84% of PPI as well, which comes to £819.47. Now, the monthly repayments were made by me so I am entitled to a refund of the PPI element of those repayments.

The final payment of £4593.42 was made by consolidating it into account 23636531. Therefore, of the opening balance of loan 2, £4593.42 is DIRECTLY ATTRIBUTED to the settlement of loan 1. However, had the PPI not been sold, then this amount would have been 17.85% LOWER than this (ie., £819.47 LESS).

Therefore, of the opening balance of loan 2 I treat the PPI element of £819.47 CONTAINED WITHIN IT as if it were a single premium PPI. As each repayment was made, this was being slowly paid off in exactly the same way as loan 1 PPI. I thus reclaim it in the same way. The difference here is that the loan is still active and of course I have been paying reduced payments due to personal hardship.

I therefore request a refund of 8.72% of the repayments made to loan 2 so far, plus 8% interest on each of those apportioned payments. Additionally, I request that the remaining loan balance is similarly reduced by 8.72%, and thus the agreed repayments are reduced by 8.72%. This is because £819.47 is 8.72% of the total loan advance of £6085.70, so 8.72% of every payment on the loan is PPI.


Resolution Proposals in Summary

I repeat, the purpose of this letter is to set out my position in the light of your offers to settle my claims for mis-sold PPI. You are aware of the impact of the PPI on the balance for loan 2.
1. The refund of the PPI contained in all loan repayments made so far to both the loan 1 and loan 2 accounts (plus 8% interest upon them), which may be used toward reducing the loan 2 balance.
2. The remaining balance of Loan 2 to be reduced by 8.72%, effectively removing the PPI element from it. Any amounts being used toward reducing this balance are to be applied AFTER the 8.72% reduction.
3.The Default dated to be removed from my credit files as this was for inaccurate sum and is in breach of the Data Protection Act.
4.Confirmation of the re-scheduled loan upon which I will recommence payments.
Yours sincerely,
The Debt Star

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

That looks good to me, DS. We're pretty sure we know what these figures are, but we don't let Egg see our cards yet. If we do, then we limit our claim to the amount we have calculated. We could be wrong, and they may offer more. This DOES happen sometimes - but we have to LET it happen.

We have the figures in the spready, as detailed in my last 2 Simiantics emails.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

ok, sounds like a plan. You happy with the letter?

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

I say it's good to go, DS - but try and hang on, in case there are others who suggest amendments. You could print it out, ready to post - but check in here before you actually post it.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

I received a nice bright yellow card in the post this morning. It reads:

CONFIRMED RESIDENT

Mr Debt Star 9 October 2010
X Address

THIS ACCOUNT IS SERIOUSLY IN ARREARS AND YOU HAVE FAILED TO REPLY TO CORRESPONDENCE OR MAKE A PAYMENT ARRANGEMENT DESPITE TRACE ENQUIRIES SHOWING YOU ARE AS LIVING AT THIS ADDRESS.

CONTACT US NOW ON 0845 8396196 TO ARRANGE A PAYMENT OR YOUR ACCOUNT WILL BE PASSED TO SOLICITORS WITH AUTHORISATION TO PROCEED WITH IMEDIATE LITIGATION PROCEEDINGS AGAINST YOU AT THE ABOVE ADDRESS.

RE; EGG Banking plc
Our ref: XYZ Fredericksons International


Now, I wrote to these knob jockeys on 30 September and 9 October. Recorded post both times. I told them the account is in dispute. I sent them a copy of a letter to me from the FOS and a copy of a letter from their 'customer' Egg acknowledging the complaint. And yet Freddies still send me threat-o-grams. What to do?

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Bump. Should I respond again to Freddies or just file under "I"?

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

ok.....I can see you guys are as annoyed as me about Egg/Fredericksons harrassment. So here is the correspondence I have just sent Egg:

Dear Sirs

Egg Accounts: Loan 2 and Loan 1

My letters to you of X and X October 2010 respectively refer.

I have received the attached threatening notice from your agents, Frederickson International dated X October 2010 ("your Agents"). I have written to your Agents now on two prior occasions advising them that the above account numbered X is in dispute and that both you and the Financial Ombudsman are investigating the dispute and working towards a resolution.

I hereby remind you that you are in breach of the OFT Guidance in continuing enforcement activities while an account is in dispute and further, that your Agents in so acting are calling into question your own fitness behaviour.

Please can you contact your Agents and instruct them to desist from their activities. If they continue it will result in a complaint to the OFT and Trading Standards about both them and Egg.

In the meantime I await your response to my letter of X October and I confirm receipt of your acknowledgment dated X October.

Yours faithfully,

I also mailed the FOS. I expect next I will get a Brian Carter Solicitors letter. Is it a defence to Egg's action to say that the matter is with the FOS and being adjudicated? I really don't want to get a CCJ.............

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

Soz, DS. We often can't get back to you within the time you might hope we would. At least by responding, you have showed - for the record - that YOU are not the one behaving unreasonably. Keep on doing that.

I'm pretty sure that the bank's own complaints procedure will condemn them, in that the FOS is recognised as the next course of action BEFORE court action.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

the FOS is recognised as the next course of action BEFORE court action.

yo Bill. can you point me to the regs that confirm this?

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

The in dispute part of the debt shouldnt be taken to court as it is legitimately in dispute ref the PPI. However any remaining part of the debt could be. (and take note thats aside from any interest on the disputed amount you might be claiming, so its basically the amount of ppi premiums you are disputing shouldnt have been paid and should be returned).

If Freds do take it to court then it'd be a defence on the ppi issue (in dispute / missold / with FOS) and an admission/offer on the rest (if any) so really with Freds Id work on the same basis to avoid any court action till the dispute is sorted (ie. make a repayment offer on the non disputed amount of the debt).

(and as far as I know theres no law against either party taking court action whilst any dispute is with the FOS although you'd hope a court would look on it as a bit vexatious - also remember FOS decision is legally binding on the lender and not on the debtor so if FOS go against you you can still sue them, but if FOS goes against them they have to pay up and cant sue you)