Welcome finance PPI FSCS

[Geirn1]

Hi, not sure if anyone could offer some advice here... I've been through the process of reclaiming PPI against a secured loan from WFS. I received a letter yesterday to say the claim was successful to the tune of £1800. I understood before claimg that the comp would be offset against the loan, however WFS. Have decided that it will be offset against a HP agreement we have in place where the interest had been frozen and an agreed payment made each month. Their argument is that they 'have' to do this as this loan has the highest interest... Well this in my opinion is in direct contravention of their statement on the letter they have sent ' the compensation is aimed to put you in the financial position you would have been on had you not taken out PPI' this clearly isn't the case as I have £1800 more secured against my home than I should have! Any help would be greatly appreciated....

[di30]

Re: Welcome finance PPI FSCS

Hi there & Welcome to Legal Beagles.

First of all, well done on your success.

Have you tried contacting them to ask why they changed their mind on how they refunding this?
You could try saying that if they are allowed to do this then why did they not mention this first of all.

Maybe someone else on here will have some advice on where to take this, good luck.

[Bill-K]

Re: Welcome finance PPI FSCS

Hi Geirn1 and welcome to you. Well done on your PPI success.

It may possibly help if you tell them that this actually against the FSA guidelines for PPI redress, as published last year in the FSA Policy Statement PS 10/12. Within this are the DISP APP 3 guidelines, and if you quote DISP APP 3.7.2 & 3.9.4, they might at least know they can't pull the wool over your eyes.

The FSA Handbook on PPI Redress contained within PS 10/12 states:

DISP APP 3.7.2 Where the firm concludes that the complainant would not have bought the payment protection contract he bought, and the firm is not using the alternative approach to redress (set out in DISP App 3.7.7 E to 3.7.15 E) or other appropriate redress (see DISP App 3.8), the firm should, as far as practicable, put the complainant in the position he would have been if he had not bought any payment protection contract.

DISP APP 3.9.4 The firm should make any offer of redress to the complainant in a fair and balanced way. In particular, the firm should explain clearly to the complainant the basis for the redress offered including how any compensation is calculated and, where relevant, the rescheduling of the loan, and the consequences of accepting the offer of redress.

[Geirn1]

Re: Welcome finance PPI FSCS

di30 & Bill-K - Thanks for the advice, think I may go direct to the FSA based on the policy statement - Welcome seem to be a law unto themselves!

[Bill-K]

Re: Welcome finance PPI FSCS

Although it's the FSA guidelines, I think it will be the FOS that you should take this to. Welscum have already admitted the PPI was mis-sold, so you don't have that to worry about. It's really just a matter of ensuring a fair settlement, now - but I don't know how long it would take the FOS to adjudicate on this. It could be quite some time.

I would give it one last shot with Welscum, first - and give them a deadline, perhaps summat like:

In the absence of any coherent response WITHIN 14 DAYS of the date of this letter, it will be deemed by default that you have given your final response in the matter. I will then consider that I have no choice other than to refer this to the FOS.