First Plus PPI - Round 2 (Norton or First Plus?)

[Bog]

I recently complained to First Plus regarding the mis-selling of two PPI policies on two loans, and subsequently received a refund for the 2nd policy (see here: http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/137511-bog-first-plus-ppi.html ), but the 1st was refered to the Broker (Norton Finance).

 

I now need some advice on how to progress this, as they are blaming each other for the mis-selling at the moment!

 

So here's the story so far…..

 

1. Applied for 1st loan with Norton in October 2004.

 

2. Call from First Plus to set up loan from Norton referral - 5 year cash back discussed, no other discussion re PPI.

 

3. May 2008 Complained to First Plus re two PPI policy's

 

4. First Plus referred complaint re 1st loan to Norton, as they sold and set up the policy.

 

5. First Plus agreed 2nd loan PPI mis-sold and refunded.

 

6. Norton responded by saying they do not believe they mis-sold the 1st policy, as they set it up on an information only basis in accordance with FSA guidelines - They say the policy was explained to me at the time and documents would have been sent out to me. I never got them!

 

7. Wrote again to Norton with S.A.R - (Subject Access Request) request, specifically asking for the recording / transcript of the original call.

 

8. Norton responded by sending my £10 back saying the enclosed info is all they have on file. They enclosed a copy of my loan agreement and a First Plus branded PPI Policy document (both faxed from FP). The policy document I had never seen before! The also included a call log (Date, time & brief details of the call), but stated they have no transcripts or recordings on any of my calls!

 

9. I called Norton today questioning who underwrites the policy and they called me saying they do not set up policies, they only refer clients to loan companies via a referral form - they put a tick in the box if clients want PPI. The loan company then set up the loan and the PPI. Norton then receives a commission for the Loan and PPI.

 

I know I never had any conversations with Norton re PPI and by there own admission they only put a cross in the PPI box on there referral form. When First Plus first called me after receiving the referral from FP, they advisor briefly talks about the PPI in terms of the 5 year cash back, but does not go into any more detail! (I have the recording from my FP SAR)

Neither First Plus or Norton fully explained the PPI and the costs involved or exclusions that may apply.

 

So who is to blame here? Who should I go after?

 

In my opinion, First Plus are to blame as they provide the PPI policy and did not check it was fit for purpose. They have also taken the premium and all subsequent payments!

 

Any advice on how to pursue this would be welcome.

 

 

[reidnet]

You will have to go after the broker, they set up the loan and the PPI, Firstplus acted on the information received from Norton.

 

I had a similar case which involved a loan From Firstplus but was set up by Purpleloans - (now GE Money) .. I had to take GE Money to court over the matter.

 

Ian

[Bog]

Thanks for the response Reinet.

 

How did you get on? Did you win?

 

Norton say they were not regulated at the time and that they supplied the PPI on an 'Information only' basis (They say in accordance with FSA guidlines???), so what would my angle of attack be?

 

Would it be that they are in breach of CCA 1974, where a company must be fit to be involved in the activities the licence covers? and/or a breach of Unfair Terms in Consumer Contract Regulations 1999?

[adamski]

This is what I would do, I would write to Norton and ask for the premium back plus associated interest and also request they send you a credit agreement with proof that you signed for PPi and that it was optional you may need to send a £1 for this but just ask and see what happens most supply it as proof that you agreed to PPI so they happily send it for free hoping you will go away.

 

Do you have a pre exsiting medical condition or were you self employed at the time of the loan etc?

Edited July 29, 2008 by adamski

[Bog]

I have just found out that Norton did not follow any of the codes of practice laid down by the Association of British Insurers (ABI), the General Insurance Standards Council (GISC) or the Finance and Leasing Association (FLA).

 

They claim that prior to 2005, they were only following FISA guidelines. FISA has only one reference to insurance.....

 

 

Extract from FISA Codes of Practice

 

19. Members and their Intermediaries will not use sales techniques relating to optional insurance products such as payment protection policies which might encourage consumers to take out such cover in inappropriate circumstances. In complying with this requirement Members and their

Intermediaries shall have regard to the consumer's circumstances and have particular regard to restrictions or exclusions contained within the relevant insurance policy.

 

 

Does this help my claim for mis-selling as they did not follow any insurance industry codes of practice? And that they did not even follow the FISA guidelines, by not checking for any restrictions or exclusions?

 

.

[Bog]

Not much happing other than I have a court date and Norton want this struck out on two grounds:

 

1. Statute Limited.

2. Claim not against legal entity.

 

Not to worried about the first as I believe the limitation if from when I first became aware of the mis-selling, which was in 2008 (when I first wrote to Norton) for a 2004 loan.

 

The second issue of legal entity worries me a bit... All my correspondace from them (and mine to them) referes to them as Norton Finance, they trade as Norton Finance and they have not stated who the legal enttiy is?

 

Where do I stand on this, surely the Judge will see that this is them just trying to worm out of this and that if they call themselves Norton Finance, thats who they are and thats who my claim is against?

 

Anyone have any thoughts or advice, or point me towards threads with a similar issue?

 

Thanks

[Fami1yGuy]

Whens the court date