PPI - do i have right for reclaim????

[kat78]

In late 2003 we took out a secured loan, via third party LoanLine. This was a Paragon loan, which had PPI on it.

We settled the loan in Aug 2006, paying off the FULL PPI> It was at this stage we realised we were completely mis sold it in the first place.

Loanline are now liquidated and Paragon took nothing to do with us.

SO, we have been onto the FOS who say we cant claim as it was over 6yrs ago.

Q - is the 6yrs from date of loan commencement or from when you became aware of it being the Mis Sold?

Your advise would be greatly appreciated, as we have been HEAVILY robbed!

KAthleen x

[Bill-K]

Re: PPI - do i have right for reclaim????

Hi Kat - and welcome to you.

Why was it that you felt you'd been robbed when you settled the loan ? Not that I doubt you, of course - it's just worth knowing.

It's also strange that the FOS have said this is time-barred, as they have generally proclaimed that they don't consider the Limitations Act as applying to PPI claims. Can you be more specific as to why they said this ?

[di30]

Re: PPI - do i have right for reclaim????

Hi there and welcome

Wonder if they mean the are unable to deal with them because the business were not regulated at the time you taken out the policy?
Not covered by FSA or prior to these GISC.

The FOS do otherwise suggest the underwriter/insurer of the business as another avenue, who may have been regulated.

[Bill-K]

Re: PPI - do i have right for reclaim????

Agreed. That sounds very likely, here, Di, doesn't it ?

[kat78]

Re: PPI - do i have right for reclaim????

Thanks for your posts guys.

• the PPI was only protecting us for 5years - we were lead to believe this was for the full duration fo the loan (180mnths). The salesman at the time, did not explain any of this.
• We were not advised that upon early settlement of the loan, we were still obliged to pay of the FUll amount of the ppi (THIS BEING APPROX £12000)
• We paid the PPI for 3 years, however when we settled the loan early, we still had to pay the full amount of PPI.

Upon spealing to the FSCS, it transpires that LoanLine were not regulated to trade in 2003 - therefore this seems our only avenue to pursue them.

Any more advice is appreciated guys.

[Bill-K]

Re: PPI - do i have right for reclaim????

Those seem like good grounds for a mis-selling claim. I'm not too familiar with the FSCS procedures and guidelines, but they use the same FSA Redress Handbook as the FOS, so I would hope that they also don't consider the Limitations Act any more than the FOS do with PPI claims. It surprises me that the FOS appear to have told you that this claim is actually time-barred.

The FSCS generally will pay a reduced amount in compensation, which appears to be a maximum of 90% of the loss in this case.

If you have records of the PPI payments, we should be able to calculate a reclaim amount which includes the portion of account interest charged on the PPI, and possibly a further amount of compensatory interest at 8%.

[di30]

Re: PPI - do i have right for reclaim????

Yes that is right Bilk.

Anyway, I have made a reclaim through the FSCS as well over a year or so ago, and was successful, more on link below, but depending again if the business were regulated by the FSA.
As the FSCS are only able to deal with cases if they were governed by the above at the time the policy was taken out.

More below on the FSCS, no harm in contacting them, just to see what they have to say.
If your eligible to make a reclaim through the FSCS, they will arrange to send you out a claim form.

http://www.fscs.org.uk/contact-us/

http://www.fscs.org.uk/what-we-cover...s-and-answers/

Failing that, if they're unable to deal with the case, it maybe worth finding out who underwrote/insurer of the policy, and re-contact the FOS.

Good luck.

[Paul210]

Re: PPI - do i have right for reclaim????

Having read the thread, its entirely possible that loanline would not have been FSA auth in 2003, this diesnt mean they couldnt sell insurance as compulsory FSA auth for insurance didnt come into effect until after that. If the loan was sold pre FSA auth then FOS wouldnt consider it (hence they say its too old), lilewise it probably wouldnt be covered under the FSCS for the same reason.

The only recourse for recovering anything would be to try and get listed as a creditor in the liquidation of loan line, although to be honest, unsecured creditors are last in the queue and in 95% of cases end up with nothing anyway. Sorry not better news.

[kat78]

Re: PPI - do i have right for reclaim????

Guys thank you for your posts.

I think we might be fighting a losing battle.

The Paragon contract ( which does not mention loanline on it at all) shows:

Loan £40,000
PPI £11,600

180 payments of £526.68.


FSCS have stated that Loanline were not regulated in 2003, and therefore should not have set up this type of insurance

FOS simply will not help us due to timeframes.

The agreement states it is set out between paragon and Us.
------------------------------- merged -------------------------------
Guys, just noticed our agreement states at the top "UNREGULATED CREDIT AGREEMENT"

What is this?

[Bill-K]

Re: PPI - do i have right for reclaim????

Guys, just noticed our agreement states at the top "UNREGULATED CREDIT AGREEMENT"

What is this?

Have to admit, Kat, it's not looking too hopeful.
Subject to confirmation from others, I think that - because it was a secured loan - it was not subject to the Consumer Credit Act 1974 (et al). It was therefore NOT regulated by the CCA - and that is the declaration.

[Paul210]

Re: PPI - do i have right for reclaim????

Have to admit, Kat, it's not looking too hopeful.
Subject to confirmation from others, I think that - because it was a secured loan - it was not subject to the Consumer Credit Act 1974 (et al). It was therefore NOT regulated by the CCA - and that is the declaration.

Spot on Bill, not becasuse a secured loan per se but because secured above 25K, these are not regulated by the CCA74, this is standard on all secured loans above this level.