Nutter192 v London Mortgages Company PPI

[nutter192]

Hi, I am looking to claim back the payment protection insurance on a loan I took out in November 2004 with London Mortgages Company.

 

I did not realise at the time that they had added a PPI plan to the total amount of the loan, the PPI cost £2400.

 

I have obtained the original copy of the agreement and as well as the mis-selling the PPI, the agreement is also unenforceable under section 18 multiple agreements of the Credit Consumer Act.

 

I have written to London Mortgages company stating that I believed that they had mis-sold the PPI and therefore requested that they deal with it. However, they said that I had to write to the broker who organised the loan and PPI in the first place. I have written to the broker Berkley Credit to which I have recieved no response. I have also sent a SAR request to London Mortgages who have cashed cheque and achknowledged it.

 

My question is, which company do I pursue for the PPI? the broker, Berkley Credit or London Mortgages Company?

 

I sense that there is going to be a lot of finger pointing from both companies. Shall I write back to London Mortgages Company insisting that they deal with the complaint becuase they are the company listed on the CCA Agreement or shall I wait for the SAR?

 

Any help greatly appreciated.

[alanalana]

I would pursue whoever the Consumer Credit Agreement is signed by so if your CCA is with LMC then those are the people to pursue for your mis-sold PPI IMO . A lot of companies are passing the buck to brokers but it's the name on the Consumer Credit Agreement that counts IMO.

 

Your monthly repayments will no doubt show LMC receiving the money:eek:

[nutter192]

Hi, I have got the contents of the DPA request and LMC have said that they are not obliged to provide a copy of the commission agreement between them and the broker.

 

Would this be significant if I chose to continue with my ppi complaint with just the basis that i believe it was mis-sold. any help appreciated.

[nutter192]

ahh another quickie question. the original agreement states that the amount of the PPI is 2400.00 to be added to the total sum of the loan. Cancelled the PPI after 36 payments, but no refund for the balance of this was credited to the loan. Is this right?

 

Also, how do i go about working out contractual interest on it as well?

[alanalana]

Hi, I have got the contents of the DPA request and LMC have said that they are not obliged to provide a copy of the commission agreement between them and the broker.

 

Would this be significant if I chose to continue with my ppi complaint with just the basis that i believe it was mis-sold. any help appreciated.

 

They will say this because the agreement would no doubt show the commission to undoubtedly be a lot less that the single premium they charged you.

 

I do not think it would be significant, the aim for you is to get back the PPI payments you made plus the contractual interest and the 8% statutory interest. IMO keep at LMC and if no success fire off a complaint to the FOS.

[alanalana]

ahh another quickie question. the original agreement states that the amount of the PPI is 2400.00 to be added to the total sum of the loan. Cancelled the PPI after 36 payments, but no refund for the balance of this was credited to the loan. Is this right?

 

Also, how do i go about working out contractual interest on it as well?

 

No this is not right when you cancelled you should have received a pro rata rebate on the outstanding PPI.

 

You should check to see what monthly payments you were making for the PPI and claim contractual interest from the date of the payment until the date you cancelled and do this for each of the 36 months.

 

So first payment date to cancellation then second payment date to cancellation and so on.

 

This compound calculator should help you out..

 

Compound interest calculator

 

Then work out the 8% statutory (simple) interest for the 36 months.

 

This time it is first payment date up until such time as a settlement is accepted, then second payment date up until settlement etc etc

 

This simple interest calculator should help..

 

Blake Lapthorn - simple interest calculator

 

If they fail to comply go straight to the FOS.

[Sunshine54]

hi alanalana

 

could you just tell me please in the compound interest calculator - how many rests?

many thanks in advance

[alanalana]

Not totally certain but 12 compounded monthly seems right Pompeyfaith may have other information on this subject as he is heavily involved in the interest issues.

[nutter192]

can someone just have a look at the letter below let me know what they think. want to hit them hard, so need to get it right. thanks.

Further to your letter of 18 August 2009, I have taken advice on the above matter and have been advised that the company named on the Consumer Credit Agreement is responsible for Payment Protection Insurance.

 

When I took the loan with your company, I was not given offered a full and detailed explanation of payment protection insurance and was lead to believe by your company/representative that it was part of the conditions of the loan. I have thought that for the last five years and more. It has only become apparent to me after the recent coverage by the media, and following the recent OFT and FSA investigations regarding the mis-selling of PPI by finance companies.. This is when I requested the Subject Access Request. Regarding the loan with the PPI applied, I believe I that I have been gravely mis-led and have been mis-sold this expensive insurance that I did not need or want.

 

No attempt was made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed it at all. No enquiry was made as whether I had pre-existing insurance for accident, illness or unemployment. I was not given a copy of the insurance policy nor were any rights to cancel explained. I believe you manifestly failed in your duty of care.

 

Secondly, I understand under the Consumer Credit Acts and following a House of Lords judgment that you are not allowed to make a loan conditional on taking PPI unless you include the costs of PPI as part of the charge for credit and not the credit itself.

 

You did not do this. You added it to the total for credit and then charged me further interest on the premium on top of the interest for the loan. This is unacceptable.

 

Finally I believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth.” Inter alia, I believe that you should have disclosed to me that the type of policy you sold me, a single payment premium, did not give a pro-rata refund in event of early settlement. I believe you should have made it clear to me that the policy generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

 

Your concealment of the act of mis-selling has prevented me from asserting my right until now. I believe that there are strong grounds for action against you under common law, statute and consumer regulations.

 

The original premium was £2400.00 added to the loan amount on the 30 November 2004 with each monthly payment being £27.00. I presume that interest at 13.8% was added to this amount (unless you can inform me otherwise) therefore making interest payable on each payment due, I have calculated this interest as totaling 596.03. The Statutory 8% interest (S69 of the County Court Act) allowed by the Courts will amount to £296.98 making the total amount payable at the Court Stage as £2405.01.

 

I am writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive this payment.

 

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

 

Yours faithfully,

[cogsy1976]

Hi Nutter

 

Any further info on thsi one? I have a very similar claim about to go through just wanted to know how you got on etc?