Moto Finance GAP Insurance on loan agreement

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Just wondering why Motonovo was so so quick with sending me a offer of GAP after complaining only last week. There previous letter only last week said it could take up to 4 weeks to resolve this and may be up to 56 days, but got a offer letter within 6 days, maybe because I mentioned the PPI element of it, LOL.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Just read my offer letter again and it does say please accept the offer made by motonovo finance in the letter of 26th July 2013 which does include all the issues mentioned. So will not be signing this until I spoke to the Red sands insurance on Monday.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

Hello Bill-K, what do you mean by its strange that PPI is not mentioned in the loan agreement.

Well, Turboman and I have helped with quite a fair number of loan-related PPI claims over the past few years, and unless the PPI is taken out as a separate 'stand-alone' policy (in which case, the premiums are also paid separately from the loan repayments) - then the PPI has always been shown as a separate amount from the actual cash advance in the loan agreement. We always try and have sight of the agreement, because this is often the only way to find out what part of a loan was the PPI element.

So this is the first instance, in my experience, of an agreement such as you have described. Does it state that it is an agreement regulated by the Consumer Credit Act 1974 ? CCA-regulated agreements have to be set out clearly, and in a prescribed form - and I suspect that such items as PPI must be shown separately. Querying this agreement may be putting them on the spot, and may possibly mean that all of their agreements are unenforceable.

I would personally suggest that you keep everything strictly in writing from now on. Telephone calls are worth only the paper they are written on - ie., zilch. If you do accept the GAP offer, then make it clear that this acceptance does not preclude you from claims in connection with any other matter. Alternatively, say that you are taking advice, and will need more time to properly evaluate their offer, considering the limited information you have been given.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Bill-K, it does stated that consumer act 1974 on my credit agreement. What would that mean to me in regards to PPI, do you think it is hidden within my monthly car payment, this is why I need to speak to the Red Sands Insurance to clarify this.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

As I said, I think it means that the PPI should be shown separately in the credit agreement. It is normal practice for the PPI to be shown separately in the agreement - but it is normal practice for the monthly repayments on the loan to include the PPI element of the loan repayment, and not to show this separately.

So - it all seems normal to me - except for the apparent fact that PPI is not listed separately in the agreement - and that is why it would be helpful to have sight of this.

If you insist on telephoning Red Sands, then I cannot stop you. I would suggest that you record the call, and tell them clearly - and within the recording - that it is being recorded, along with the date and time, and the parties to the conversation. Also ask for confirmation of what was said in writing.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Hello Bill-K, I read to you what the PPI policy states; The total premium ( including insurance premium tax ) will be collected by Direct debit at the same time as your Finance agreement payments. They will not be shown on your bank account as a separate payment but added to the finance payments. This payment is not detailed in your finance agreement. It is a separate contract. The monthly premium will be payable until the end of the finance agreement, making a total of premium paid £2446.20 ( £40.77 per month ). Sorry for being a pain as not had time to scan my credit agreement etc to you at this moment. I will ring Red Sands Insurance but will get the name of the person I would speak to and the date and time for my records to hit htem with. If it is found I do not have PPI, fair enough, but if I do, it would mean they are breach of contract and who to say many customers could be deceived as well which would hit Motonovo hard.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Motonovo said I cancelled the PPI on the 29th September 2010 over the phone ( true as they rang me and I said I did not want it ) , but I have certificate of insurance of PPI clearly showing it was signed on the 29th September 2010 by two under writers. So my other question is was it signed before or after I said I did not want PPI. I am sure they phoned me before this date.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

The monthly premium will be payable until the end of the finance agreement, making a total of premium paid £2446.20 ( £40.77 per month ).
I'm 99% sure that this monthly premium IS the PPI, which is shown as £2446.20. Your monthly loan repayments will presumably have been more than the £40.77 per month mentioned above ? So - we need to know how many repayments were made, and when. This will give us some idea of what to expect in response to a claim. It would still help tremendously if you can post a copy of the agreement ASAP, though.
...it would mean they are breach of contract and who to say many customers could be deceived as well which would hit Motonovo hard.
...and THAT is why I suggest you get everything in writing from now on.

....

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Bill-K, I am off work until next Thursday so cannot send you a copy as I have nothing to scan or copy at home. The next best thing is to type down the figures from the credit agreement. I paid 35 payments so far out of the 61 month period , cash price for the car was £11.659.99 and still owe £6.125.33 to them. Total due to them including interest is £14.648.80 from day one.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

Motonovo said I cancelled the PPI on the 29th September 2010 over the phone ( true as they rang me and I said I did not want it ) , but I have certificate of insurance of PPI clearly showing it was signed on the 29th September 2010 by two under writers.
If the certificate of insurance was signed on 29/09/10, and you cancelled it the same day, then there was no PPI, it seems to me.
So my other question is was it signed before or after I said I did not want PPI. I am sure they phoned me before this date.
I don't see why this is relevant, SAVA. If you were charged PPI prior to cancellation, then you can reclaim it. If you were charged PPI after cancellation, then you can reclaim it. Motonovo have already acknowledged that you cancelled the PPI on 29/09/10, so they cannot deny it - unless all you have is your recollection of a phone call, and nothing in writing !!!

OK - if you can answer these 6 questions, we should be nearer to some clear figures:-
What was the date of the first payment ?
How much was it ?
What was the date of the most recent payment ?
How much was it ?
If the amounts above are different, when did they change ?
Were 61 payments actually stipulated in the agreement ? (This is an unusual number - are you sure it wasn't 60?)

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Afternoon Bill-K, Sorry for the delay I had to go shopping with the other half etc. The first date of my repayment was 26th November 2010 for £397.08 which included the admin fee ( £175 ) then the second payment was 22nd December 2010 for £222.08. The repayments were the same after that and the same date 26th of each month thereafter for £222.08 until this month in July 26th 2013 at £222.08. It is 61 months agreement duration according to my credit agreement. The credit agreement started ( executed ) on the 24th September 2010.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Sorry GAP INSURANCE was paid in full on the 26th October 2010

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

The last payment in 2015 will £371.08 which includes the option to purchase fee ( £149.00 )

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

Yeah, I'm OK with the GAP insurance - it's the PPI that is puzzling me. Looking at the figures in your post #26, the loan was for 61 months. I'm guessing from the dates that there was no payment expected for the first month, and although the loan period was for 61 months, only 60 repayments were scheduled. But my problem is this. 60 repayments of £222.08 comes to a Total Amount Payable of £13,324.80. But in post #24, you state that the total due to them including interest is £14,648.80 from day one. That's a difference of £1,324.00. Where did you get the figure of £14,648.80 from - is it in the agreement ?

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Cash price of car is £11.659.99, HP ADVANCE £10.659.99, £1000 Deposit paid , interest £2664.81 for the whole period, Admin fee £175, Optional to purchase fee £149.00. Total altogether is £14,648,80. The interest rate is 5.00% per annum.