London Mortgage Company

[cogsy1976]

Hi All

My first post on here for years after I sucessfully managed to reclaim over £5k of bank charges in the good old days!

 

Am now moving onto the PPI!

 

Back in Nov 2002 I took out a oan with LMC (through Ocean Finance I think) they sold me PPI that I didnt want! and I repaid the loan after 3 months!! and remortgaged to Abbey (as my credit rating was better!) basically the robbing b**tards never told Sterling Insurance that I repaid the loan and therefore along with the huge ERC on the loan (which was over 20 years) I paid £2100 for PPI

 

Now when it was repaid LMC never told Sterling that it was repaid so the policy continued for 5 years eventually ending 3 years ago in the I have spoken to Sterling and they said it wasnt LMC's responsibility to tell them and I just assumed that once the loan was repaid the PPI would lapse however this isnt the case and it seems that I have paid £2100 for PPI I didnt want or need.

 

Is this commonplace? Sterling told me that I didnt need to have the loan to continue the policy and thats why they can continue when the loan has been repaid! I want my money back as I feel like I have been well and truly ripped off and surely if my loan was over 20 yeasr and they have sold me a policy over 5 then that is mis-selling?

 

Any help/advice much appreciated!!

[landy_alert]

Hi Cogsy:)

 

Yes its definitely worth you putting in a claim - it sounds like a very similar situation to my own with Swift Advances/Norton Finance. Like yourself my loan/mortgage was repaid early (after 18 months) and at no time was I given any PPI rebate or the policy cancelled (mine was for 3 years against a 25 year mortgage). I believe the success rate for reclaiming single premium mortgage PPI is pretty high!

 

Anyway its the broker you need to go after as they sold the product to you. As you only had this for three months I presume you have date the loan was taken out and when the premiums were paid? You need to put in a request for a refund of the PPI plus interest to Ocean - are they still trading? Sorry, I've not had any dealings with them although I know many other Caggers have. There should be a suitable letter you can adapt to your own use in the stickies at the top of this forum - you will need to give your own reasons for mis-selling (of which I'm sure you'll find plenty) obviously!

 

The fact that the PPI only covered the first five years does seem like a pretty good reason, although I understand most mortgage PPIs only cover a short period - I was told this is because they expect you to re-mortgage to a better interest rate after the first 3 or 5 years.

 

If you don't have all the info you need once again there is a SAR for PPI in the stickies.

 

If Ocean (assuming they are trading) turn down your request and you eventually get issued with a Final Response letter (or they take more than the prescribed 8 weeks) you can take your complaint to the FOS (which is the stage I'm at now) or file a county court claim to get your money back. If your broker has ceased trading you can take your complaint to the FSCS (Financial Services Compensation Scheme) - some Caggers have achieved success this way I believe.

 

Hope this is of some help and good luck with your claim!

 

Landy x

[cogsy1976]

Thanks Landy

 

Think I will just proceed with a claim for mis-selling then and if I get nowhere with that then pursue for the refund in the premiums, I believe it was mis-sold as only covered 5 years when term was 20 so was not suitable for purpose. Im a mortgage advisor and if I sold a policy over 5 years to cover a loan of 20 would get into trouble as its not fit to cover the loan whether they remortgage or not.

 

Plus I am sure I never received any info on the PPI! I sent a SAR to Ocean Finance who gave no details whatsoever on the PPI so then sent SAR to London Mortgage Company who again supplied no details on the PPI so called Sterling who the PPI is with and they are going to send me the info I did ask whose responsibility it was to have sent me the PPI and she said LMC! plus I have an existing medical condition which I wouldnt have been covered for so I will have them on that!

 

Anyway Sterling have escalated a complaint on my behalf so I dont know whether it is now worth writing as wel or leaving it upto Sterling as Im pretty sure they wont get my points across!

 

Thanks

[landy_alert]

Hi Cogsy:)

 

Well with a pre-existing medical condition it sounds like you have good grounds for a mis-sell. I would definitely put something in writing as well so that you have a paper trail, both for your own benefit and for later on if you have to take this to the FOS/court. Don't forget to add 8% simple interest to your claim!

 

Let us know how you get on.

 

Landy x