FOS adjudiction PPI case - nov 2008

[Amethyst]

http://www.financial-ombudsman.org.u...decision-B.pdf

summary of complaint
This final decision is issued by me, Tony Boorman, an ombudsman with the Financial Ombudsman Service. It sets out my conclusions on the dispute between Mr and Mrs B and the firm. Under the rules of the Financial Ombudsman Service, I am required to ask Mr and Mrs B either to accept or to reject my conclusions in writing.

The dispute is about the sale of a single-premium payment protection insurance (PPI) policy, recommended by the firm in connection with a secured personal loan. The recommendation was made in February 2006 (after the introduction of regulation of such sales by the Financial Services Authority) during a phone conversation.

I have considered all the available evidence and arguments from the outset, in order to decide what is fair and reasonable in the circumstances of this complaint. For the reasons I set out below, I have determined the complaint in favour of Mr and Mrs B and have made an award against the firm.

[Amethyst]

Re: FOS adjudiction PPI case - nov 2008

the re-configuration of the loan, the firm should:
A.
re-arrange the loan to Mr and Mrs B by writing off all amounts that remain outstanding in relation to the borrowing for the PPI premium, including any interest and charges, so that in future the number and level of outstanding repayments against the loan (and any charges and fees) are the same as would now have applied – had Mr and Mrs B taken the original loan sum (£95,000) without the PPI cover (with the firm waiving, for this purpose, any charges or fees that would normally apply to a change in the loan);
B.
calculate the amount Mr and Mrs B have paid to the firm from time to time, up to the time of settlement in relation to the additional borrowing for the PPI premium (including interest charged), less any premium refund actually paid to Mr and Mrs B on cancellation of the policy;
C.
to the sums calculated at (B) the firm should add interest from the points Mr and Mrs B made the payments to the firm to the point the firm settles this award in full, that interest should be calculated at a rate of 8% simple per annum

[Amethyst]

Re: FOS adjudiction PPI case - nov 2008

Worth reading the PDF for PPI claims, especially self employed ones. Nice adjudication IMO.

[natweststaffmember]

Re: FOS adjudiction PPI case - nov 2008

There is some good historical information on that PDF. Well worth a read of.