Picture Loans & PPI

[ajblade]

Hi All

I took out a picture loan in july 2007 and took out the PPI.

I was aware that the granting of the loan wasnt dependent on the purchase of the PPI.

However, my state of mind was very confused at the time - I had run up many credit card debts and was trying to start up a gardening business while working 31 hours in a salaried position - mainly at weekends. My father was very ill aswell - culminating in his death in december of that year.

I wasnt aware that the policy was for only five years - it does clearly state this on the agreement - and as the loan is for 20 years I would certainly have questioned its validity.

The cash purchase of the insurance was £11,227.50 which equates to £187.13 per month for the duration of the policy. Again if I had been told it was only for 5 years I would not have taken this out.

I currently pay less than that per month for my car, business, £250k life, buildings and contents, and two lots of dental insurance.

If I start a claim for mis-selling of PPI I have a few questions.

What aspect of mis-selling would stand the greatest chance of being successful?

Could Picture call in the loan?

Could Picture force me to take on another loan?

I have just taken voluntary redundancy from my salaried job - due to a change in hours which did not fit with my business hours.

I cannot claim on the policy as I am now working more hours in my business.

Any suggestions would be welcomed.

Many thanks

AJ

[Curlyben]

Re: Picture Loans & PPI

Well this PPI is clearly unfit for purpose as it only covers 1/4 of the loan period.
Where you made aware of this fact BEFORE you signed the agreement ?

[Happyolddog]

Re: Picture Loans & PPI

Mis-selling checklist

If you can answer ‘no’ to one or more of these questions, then you may have been mis-sold PPI.

• If the insurance was optional, was that made clear to you?
• Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won't be covered for any pre-existing medical condition?
• If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in one single payment?
• If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?
• Single premium PPI insurance normally only lasts for 5 years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium, even after the insurance expired.

So if any of the above applies to you and your PPI then it can be deemed as missold.

[ajblade]

Re: Picture Loans & PPI

CB/Happyolddog

it does state on the loan agreement and/or the brochure sent out to me all of your questions, but the adviser, in my recollection, never highlighted any of them other than it was optional.

AJ

[pinknico]

Re: Picture Loans & PPI

I am assuming that you have the PPI with Picture Financial Services who have now been declared in Default and all claims are going through the FSCS. I suggest contacting them to ask for the forms to fill in :
http://www.fscs.org.uk/contacts/

Picture cannot force you to do any of the above things you said.

The FSCS criteria for mis selling is unknown at the moment so I would just fill out the forms, in my experience with PPI wins it does not always follow that because you knew something about the policy and signed for it does not mean it cant be mis sold.
The main things are the 5 year bit and the fact its a single premium policy and front loaded adding thousands in interest.
Goodluck.

[ajblade]

Re: Picture Loans & PPI

Pinknico

many thanks for that.

it has given me some ray of hope.

I just cant believe I signed up - I feel so stupid.

with interest we are looking at £22k.

AJ

[Ashmam]

Re: Picture Loans & PPI

I am in the same boat
Wot is the stance on the loan being unenforceable if the ppi is missold??
Ashmam

[natweststaffmember]

Re: Picture Loans & PPI

I am in the same boat
Wot is the stance on the loan being unenforceable if the ppi is missold??
Ashmam

That is a tough one because either the loan is unenforceable or you took the loan and was missold the PPI. It is either one or the other, does that make sense?