Halifax PPI Claim

[Bigsis]

Hi

After successfully fighting off bailiffs & parking charges, with all your kind help and advise, I now need to get my head around reclaiming PPI. I've been reading the advise and info on the forum and have downloaded the Consumer Questionnaire.

This was a Halifax Joint Personal Loan taken out 2/8/03 for £8000 and final payment was made on 13/11/10. I contacted customer services by phone to arrange this loan and during the process I was advised to take out PPI for 'peace of mind in case of illness, redundancy etc'.

In 2007 following the publicity of mis-sold PPI, I contacted Halifax customer services to cancel the PPI, so that I could take out a cheaper stand alone PPI. I was told I would have to cancel the entire loan & PPI and refinance at a new interest rate (ex of PPI) which meant I would be paying a much higher repayment. I was given no option but to continue with the policy.

I have since realised that the PPI is only in my husbands name. Would the fact I was working part time (25hrs a week) mean I was not entitled to this cover, although that was not mentioned at the onset, I assumed we were both covered.

Question B5 - I'm not sure if this PPI is a (a)one-off single premium paid up front or (b)a premium paid each month. I assumed it was (b) but after reading other threads I'm not sure.

£8000.00 cash loan
£3163.60 total charge for credit
£11,163.60 amount paid for cash loan

£2158.48 Insurance loan
£806.72 total charge for credit
£2965.20 amount paid for insurance loan

84 monthly payments of £168.20 - Annual % rate 9.9% - Monthly interest rate 0.798% - Total loan £10,158.48 - Total charge for credit for total loan - £3,970.32 = £14,128.80

Your advise would be appreciated

[Bill-K]

Re: Halifax PPI Claim

Hi Bigsis,

This looks like a good case of mis-selling, but with an interesting 'slant' to it, in that the 'mis-selling' seems to have been compounded when you realised you didn't need this, and they then went ahead and - apparently - tried to 'mis-sell' you another loan at a higher rate !!!

...I'll be back....

[Turboman]

Re: Halifax PPI Claim

So will I later today

[Turboman]

Re: Halifax PPI Claim

Yep--this is a Loan where the PPI is paid each month

I anticipate Bill is latching on to the statement where they say that you would have to take a higher interest loan to cancel-comparing with the guidelines in the FSA Handbook

I will also PM our PPI Colleague Di30 to look too

So -lets say you are successful in claiming back--heres the figures

In your case the Total Premium of £168.20pm was £132.90 for the Loan Advance & £35.30 for the PPI premium

Total PPI Paymemts made due back = £2,965.20 (as in your post 1-which in fact is 84 x £35.30 as you have no missed payments)
8% compensatory interest on those PPI payments (which include the 9.9% annual interest btw) from the date each was paid to the current date (assumed 30/9/2012) = £1,207.95

SO ...Total Redress Expected as at 30/6/2012 = £4,173.15

The following spreadsheet illustrates above-for your last payment to be 13/11/10 and 84 payments-I have assumed first payment was on 13/12/2003

Bigis.xls

We don't actually submit the figures when we make a claim btw---we just wait for the offer & then check it against what I've posted above

[di30]

Re: Halifax PPI Claim

Thanks for the PM Turbo.

That is correct BigSis, it's useful to know roughly what to expect, and keep a record of your own figures as well, so if anything is amiss, you could question this matter with them once it's solved.

However, when your ready to make a reclaim with your mis selling reasons, below are some useful details/links of PPI and how to make a reclaim.
Always keep copies of what you send, this is in case you need to refer back to the case, or even complain to the Financial ombudsman service (FOS), this will save time later on.

http://www.legalbeagles.info/forums/...I-Calculations


The above is posted by our Turbo, although I note Turbo have already gone through some figures for now.

To make a reclaim, the banks expect reclaim questionnaires to be completed now, these were issued by the FOS, you complete and send to the responsible business that arranged your loan, complaints/head office, always send by signed for/recorded delivery, to ensure proof of posting, via Royal Mail - Track and Trace.
Keep a copy as already stated above.
They should send you a written confirmation letter within a week, maybe 2, they will also confirm a timescale which is generally up to 8 weeks they have to deal with your complaint, from the date of when they received your actual complaint.
Although they may still resolve sooner.

http://www.financial-ombudsman.org.u...stionnaire.doc

Hope this info helps. I shall be back and forth anyway, but we will help all we can.

Good luck on your reclaiming.

[Bigsis]

Re: Halifax PPI Claim

Hi Turbo

Thank you for getting back to me and for going to so much trouble to work out all the figures and explaining it all so well, I could never have worked all that out! Just an up-date after checking my paperwork, the loan was taken out on 2/8/03 we had an initial '3 month repayment holiday' and the 1st payment was 2/11/03 and the final payment was 13/11/10, hope this hasn't messed up the calculations.

[Bigsis]

Re: Halifax PPI Claim

Hi Di

Thank you for your support and advice, I'll crack on and get the questionnaire completed, should I include a covering letter along the lines of the PPI Preliminary letter? Anyway will keep you updated.

[Bill-K]

Re: Halifax PPI Claim

Many thanks to my PPI 'compadres' Di and Turbo. Thanks for doing the figures Turbo. With regard to Bigsis's query on question B5 in post #1, this appears to be a fixed-amount loan with a 'front-loaded' PPI premium - as opposed to a 'revolving credit' account where the premium is charged monthly. So - assuming it is 'front-loaded,' then the answer to question B5 would be (a) - even though the loan to cover the single-payment premium is repaid monthly. I just wanted to get that clarified.

From what Bigsis has explained, there are already several reason why we can consider the PPI to have been mis-sold. But there could be more. In the attached list I have highlighted in bold text the reasons which I think already apply, but there may be more if Bigsis has a read through and thinks back to the original sale.

I notice that one of the reasons why Bigsis says she wanted to cancel the PPI was because she wanted the freedom to purchase PPI elsewhere. Unless this is the ONLY reason for wanting to cancel, I always suggest that we do NOT mention this as a reason. If you take a look at the final reason in the attached list, I have explained this. I would also suggest that we treat this as a claim for mis-selling at the ORIGINAL time of sale, and only use subsequent events to support that claim - or as a 'fall-back' position. I hope that helps - and makes sense !!!

[Bill-K]

Re: Halifax PPI Claim

Here's the "alternative Approach" stuff - for those who are interested:-

.A..l.t.e..r.n..a..t.i.v..e.. .a.p..p..r..o.a..c..h.. .t.o.. .r.e..d..r.e..s..s.:. .s..i.n..g..l.e. ..p.r..e..m..i.u..m... .p..o..l.i.c..i.e..s.............................. ......Where the only breach or failing was within ■ DISP App 3.6.2 E (9) and/or
■ DISP App 3.6.2 E (12), and in the absence of evidence to the contrary, the firm
App
3.7.7
may presume that instead of buying the single premium payment protection
contract he bought, the complainant would have bought a regular premium
payment protection contract.
If a firm chooses to make this presumption, then it should do so fairly and for
all relevant complainants in a relevant category of sale. It should not, for example,
App
3.7.8
only use the approach for those complainants it views as being a lower
underwriting risk or those complainants who have cancelled their policies.
Where the firm presumes that the complainant would have purchased a regular
premium payment protection contract, the firm should offer redress that puts
App
3.7.9
the complainant in the position he would have been if he had bought an
alternative regular premium payment protection contract.
The firm should pay to the complainant a sum equal to the amount in
■ DISP App 3.7.3 E less the amount the complainant would have paid for the
alternative regular premium payment protection contract.
App
3.7.10
PAGE
9
FSA Handbook ■ Release 118 ● October 2011 App 3.7.10
DISP Appendix 3 Handling Payment Protection Insurance complaints
3
The firm should consider whether it is appropriate to deduct the value of any
paid claims from the redress.
App
3.7.11
Additionally, where a single premium was added to a loan, ■ DISP App 3.7.4 E
applies except that in respect of ■ DISP App 3.7.4 E (1)(a) the cancellation value
should only be used if the complainant expressly wishes to cancel the policy.
App
3.7.12
The firm should, for the purposes of redressing the complaint, use the value of
£9 per £100 of benefits payable as the monthly price of the alternative regular
App
3.7.13
premium payment protection contract. For example, if the monthly repayment
amount in relation to the loan only is to be £200, the price of the alternative
regular premium payment protection contract will be £18.
Where the firm presumes that the complainant would have purchased a regular
premium payment protection contract and if the complainant expressly wishes
App
3.7.14
it, the existing cover should continue until the end of the existing policy term.
The complainant should pay the price of the alternative regular premium payment
protection contract (at ■ DISP App 3.7.13 E) and should be able to cancel at any
time. This pricing does not apply where ■ DISP App 3.7.4 E (1)(b) applies.
So that the complainant can make the decision on the continuation of cover
from an informed position, the firm should:
App
3.7.15
(1) offer to provide details of the existing payment protection contract;
(2) inform the complainant that he may be able to find similar cover more
cheaply from another provider in the event that he chooses to cancel the
policy and take an alternative but remind the complainant that if his
circumstances (for example, his health or employment prospects) have
changed since the original sale, he may not be eligible for cover under
any new policy he buys;
(3) make the complainant aware of the changes to the cancellation
arrangements if cover continues;
(4) explain how the future premium will be collected and the cost of the
future cover; and
(5) refer the complainant to www.moneyadviceservice.org.uk as a source
of information about a range of alternative payment protection contracts.

[di30]

Re: Halifax PPI Claim

Hi,

Good points raised Bill.

Bigsis, do not worry about a cover letter, by all means if you need to add further info where you need to continue on another sheet that is fine.

Good luck.

[Bigsis]

Re: Halifax PPI Claim

Hi Bill K

Thank you for your input and explaining question B5! I've read the PPI mis-selling reasons and the ones you've highlighted are certainly the correct ones for my case. I understand your reason that 'cancelling to purchase cheaper PPI' could be used against me. So I'll stick with all of the other reasons along with 'I was pressurised to purchase by the generally insistent advisor', all of which are true. Do I take it I should not include the last reason 'I tried to cancel but was told I needed to refinance' at this stage. Hope I've understood things correctly, perhaps you could just confirm.

Many thanks

[Bill-K]

Re: Halifax PPI Claim

Yep - add any other reasons that you honestly think applied to the original sale.

The "I tried to cancel, but..." is OK to include, as it compounds the earlier reasons. But - your reasons for wanting to cancel weren't because you realised you could have bought the PPI more cheaply elsewhere, were they ?

...Capisce ? ...

[Bigsis]

Re: Halifax PPI Claim

Cheers Bill K........capisce!

[Turboman]

Re: Halifax PPI Claim

Hi Turbo

Thank you for getting back to me and for going to so much trouble to work out all the figures and explaining it all so well, I could never have worked all that out! Just an up-date after checking my paperwork, the loan was taken out on 2/8/03 we had an initial '3 month repayment holiday' and the 1st payment was 2/11/03 and the final payment was 13/11/10, hope this hasn't messed up the calculations.

Just alter cell E17 (Date of First Payment) to 2/11/2003---which then ups the total to £4,200-ish all but 2 p
btw you will see in cell L16 that the claim increases by £3.10 for each day - after 30/6/2012

With regard to Bigsis's query on question B5 in post #1, this appears to be a fixed-amount loan with a 'front-loaded' PPI premium - as opposed to a 'revolving credit' account where the premium is charged monthly. So - assuming it is 'front-loaded,' then the answer to question B5 would be (a) - even though the loan to cover the single-payment premium is repaid monthly. I just wanted to get that clarified.

Bill
re question B5--I'm filling one in as you know at moment ( lol) so I see that question B5 is worded thus:

"How did you pay for this insurance?"

a)-With a one-off single "premium" paid up-front
b)-With a "premium" paid each month
c)-Not sure

I think the emphasis here is on the word pay and hence I would suggest therefore the answer must be b)--yes???

[Bill-K]

Re: Halifax PPI Claim

re question B5--I'm filling one in as you know at moment ( lol) so I see that question B5 is worded thus:

"How did you pay for this insurance?"

a)-With a one-off single "premium" paid up-front
b)-With a "premium" paid each month
c)-Not sure

I think the emphasis here is on the word pay and hence I would suggest therefore the answer must be b)--yes???

(b) would be the answer for a credit card account, but for a front-loaded loan, it is paid "with a one-off single premium paid upfront." This payment is financed by the PPI loan. It is loan repayments that are made each month, not premium payments.

After 5 years, or whenever the PPI policy expires, and cover ceases - the loan repayments continue. This is because they are loan repayments and not premium payments. That's my take on it, anyway.