Mis-Sold PPI - awarded refund & compensation

Discussion in 'Payment Protection Insurance claims' started by TheShark, Aug 20, 2013.

  1. TheShark

    TheShark Frequent Poster

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    Received my refund letter from my bank this morning.
    Was pleased to see that they agreed that PPI was mis-sold and awarded a Premium refund and compensation.
    However the letter goes on to state that this will be allocated to my Personal Loan account. My understanding was that PPI was sold separately to the Personal Loan , therefore would I have a case to request a refund cheque be sent direct to me ?
     
  2. Gerry Canning

    Gerry Canning Frequent Poster

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    From Ger Canning PPI: Congrats on getting your own money back.
    ............................................................................
    Can you answer these questions.
    I have been following Central Bank on their lack of urgency on PPI.
    Central Bank has with SOME banks inititated what they call an (independent) Review on policies sold ONLY since Aug 2007.What this means is anyone sold ppi before Aug 2007 is not reviewed, the review is paid for and overseen by people hired by the Bank, NOT INDEPENDENT.In short I do not trust Central Bank.
    1. Was your ppi sold since Aug 2007.
    2. Have you sighted how they have calculated your money.
    3. Did they explain how you were mis-sold.

    Either request the funds be sent direct or a letter permitting you to draw it from the loan. Please don,t take any messing from these people who stole from you.
     
  3. wbbs

    wbbs Frequent Poster

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    Ìn a lot of cases the premium for the PPI was added on to the loan amount requested and the loan was then issued for the full amount including PPI premium which was then paid to insurance company. So if that was what happened in your case it would kind of make sense to refund the money to the loan account.
     
  4. Gerry Canning

    Gerry Canning Frequent Poster

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    From Ger Canning PPI;
    wbbs; It only makes sense if it wasn,t mis-sold in the first place !Also that means he was charged full interest on the ppi premium !
    It WAS NEVER part of the actual loan. In simple terms it was funds added on and stolen. The ONLY reason he is getting money back is because thieves have been found out .
     
  5. TheShark

    TheShark Frequent Poster

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    Thanks for the replies.

    The details were as follows:

    Policy Start Date -25/10/2007
    Premium Refund - €1770.72
    Compensatory Payment - €223.32
    Total Refund - €1994.04

    They don't say how the figure was calculated just that "in reviewing your policy we are not satisfied that the sale of my PPI met all of the relevant requirements. As such we have calculated a refund amount "

    They go on to say that the compensatory payment is taxable and should be taken into account when preparing tax returns.
     
  6. Time

    Time Frequent Poster

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    Compensation should be tax free.
     
  7. wbbs

    wbbs Frequent Poster

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    Would it not make sense to lodge back the amount of the loan that was drawn down originally to reduce the balance to what it should be had he never had PPI and have it backdated to recalculate the interest? This would be the refund of the premium I presume, any other compensation should be paid directly to the customer if they so wished.
     
  8. Gerry Canning

    Gerry Canning Frequent Poster

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    If you were charged ppi with loan and the ppi was 1770 then your money should be more than they have offered. They HAVE CHARGED you interest on 1770 for 6 years eg @ 10% a year is @ least 177 by 6 years = circa another 1062.

    From what I see you are still being conned? Am I missing something?
    If you want mail me gerrycanning@hotmail.com copy of your loan doc and I will advise, or phone me on 0872437139.
     
  9. Adrienne41

    Adrienne41 Frequent Poster

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    I got a letter from UB offering a refund on mis sold PPI on my mortgage, it's less than 1,000 euro, does this seem right on a Mortgage of circa 220,000? Seems small compared to above example of a personal loan unless it was a large loan.
     
  10. sahd

    sahd Frequent Poster

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    How many years did the PPI policy run for?
     
  11. Adrienne41

    Adrienne41 Frequent Poster

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    Guessing since we took out mortgage 2001
     
  12. wbbs

    wbbs Frequent Poster

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    What was the monthly repayment amount insured for? Not always the same as the actual repayment, sometimes customers take a lesser amount for various reasons. What monthly premium were you paying for the PPI?
     
  13. Gerry Canning

    Gerry Canning Frequent Poster

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    .................................................................................
    What the Mortgage Companies may have (cutely) done is put ppi to pay out as a fixed repayment per month ie not covering the full mortgage eg mortgage was 1,000 per month , ppi covered 400 of it.

    suggest write and ask for FULL particulars on ppi payment.
     
  14. wbbs

    wbbs Frequent Poster

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    Why would that be 'cute' of the mortgage company? That would give them lower commission, if they were being cute they would go for the highest possible monthly payout thus giving them the maximum commission on the monthly premium.

    Often there were good reasons why the borrowers chose to take insurance on an amount lower than the full mortgage repayment.
     
  15. Gerry Canning

    Gerry Canning Frequent Poster

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    wbbs; When the commission was 80% of the premium you paid , even a policy that purports to cover part of mortgage is good commission.
    From the Banks view Half a loaf is better than none .
    Plus the premia on full mortgage could make consumer question etc.

    Ask the question? Why have Uk Banks refunded 20Billion thus far?
    Ask the question ? Is 80% Commission fair?
    Ask the question? Did customers know what they could actually claim for?
     
  16. wbbs

    wbbs Frequent Poster

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    No idea as to answer to first question, can't answer for UK banks.

    Perhaps the sellers were misled too so, as I always understood the commission to the bank was 40%, never heard a figure of 80% mentioned.

    Yes, if my customers were listening then they would know what they could claim for, few listened or read what they were asked to sign in any part of a mortgage application, they wanted a house and the mortgage was just a nasty side effect.
     
  17. Gerry Canning

    Gerry Canning Frequent Poster

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    The Commission on the usual HP or Loans was 80% of every premium.
    It may be on Mortgage Type ones it was 40% .
    In any event 40 or 80 comes into unfair territory.
    You are right , a lot of the sellers were misled in both the benefits and exclusions . They were also pushed into selling products they knew little about .What consumers could actually get a valid claim for was limited and again the claims statistics bear this out. Sellers were not trained that it was THEIR responsibility to ensure they acted in the Consumers interest as per Consumer Codes.
    In short a mess !!!
     
  18. cartoonist

    cartoonist New Member

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    hello for the last few months i have been getting letters and updates from MBNA re this. today i got a letter from AVANT CARD saying i was indeed owed money and that as i have a balance on my credit card they will be paying it to that card account (which is suspended anyway). this seems weird? i obviously was missold the insurance, paid the premiums but now they want to use the "refund" to pay down my credit card? surely i'm being double charged here in some way? any advice? have to write back to them in 10 days. the phone numbers quoted on both the MBNA and the Avant Letter are not in service!
     
  19. Gerry Canning

    Gerry Canning Frequent Poster

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    .............
    Probably the (updates) are Mbna/Avant checking whether you were eligible for ppi from the start.
    Write (keep copy) and request full documentation , either written or verbal on your agreement to accept PPI.
    You Need to know how much they have charged you on PPI before accepting any refund.
    In relation to refund being (applied) to card.
    1. If you did not have proper contract for PPI , any funds redue are yours.
    2. They may have in small print that they get the funds , that is contestable .

    In short,
    1. Write for ALL the info on the PPI,you are then in charge.And can then in your time decide what to do.
     
  20. Gerry Canning

    Gerry Canning Frequent Poster

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