Nemo loan but PPI sold through broker Bright Finance

[pudsey7]

Hi,

 

I am looking for some advise now that the banks seem to be refunding PPI.

 

I took out a secured loan in 2005 with Nemo Personal Finance.

 

It was done through a broker Bright Finance who no longer exist.

 

I tried to reclaim the PPI on the loan as I believed that it was mis sold.

 

Nemo said that they couldn't do anything as they never sold the PPI.

 

I eventually went through the FCFS and got refunded what had been paid so far.

 

However the PPI was not taken off my loan and I am still repaying the PPI.

 

Is there anything that can be done to get this removed or because the broker no longer exists and I accepted the payment through FCFS is there nothing I can do?

 

Any advice greatly appreciated.

 

Thanks

[ims21]

Hi

 

Have you got all the figures from the loan agreement and the figures of what was paid when they settled the claim?

 

ims

[pudsey7]

The original PPI was £3712.50 payable at £33.66 a month. I have phoned Nemo in the past to cancel it but they advised that my payments would not come down as they did not know how much of my monthly payments were loan and what was PPI.

 

By the time the loan is paid off the amount of PPI payable will be £10,098.00.

 

The amount given in compensation was £5,290.91.

 

All I am looking for is for the interest on the PPI part of the loan to stop but not sure that there is anything I can do?

 

Thanks

[ims21]

Normal practice would be to refund the premiums, interest plus 8% statutory interest for the amounts actually paid.

 

As the policy was mis-sold it should be automatically cancelled and the "future" loan adjusted to remove the remaining ppi part of the loan.

 

I take it this was a single premium ppi added to the loan at the outset?

 

ims

[pudsey7]

Yeah it was a single premium but as it was through a broker Nemo refused to adjust the loan to take the PPI off.

 

Do you think it is worth writing to them to say that I request the adjust to be made as I believe it was mis sold?

 

Thanks

[dx100uk]

pers id just put in a claim to the oc.

 

dx

[pudsey7]

OC?

[dx100uk]

original creditor

 

whom you paid your PCM too

 

 

dx

[pudsey7]

Any advice on how I should word it as I have already contacted them in the past before got compensation from FSCS and they said they wouldn't look at my complaint?

[pudsey7]

I have now been in touch with Nemo on this who said they don't have to adjust the loan so the PPI interest is not being paid anymore and that I need to go back to FSCS. when I phoned the FSCS they said I had to go through Nemo.

 

Any suggestions on what I should do next?

 

Thanks

[dx100uk]

me thinks you need to direct them to the FOS website

 

where it is CLEARLY stated in several places they must recontruct the loan

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

 

dx

[jediuk]

Yeah it was a single premium but as it was through a broker Nemo refused to adjust the loan to take the PPI off.

 

Do you think it is worth writing to them to say that I request the adjust to be made as I believe it was mis sold?

 

Thanks

 

I am trying to get this straight in my head also. i have a claim going through with FSCS against nemo. if i am successfull i should get all my PPI premiums back plus interest.

 

What should happen to the nemo loan? should they readjust by writing off the PPI element and reassigning my payments to the loan only?

 

sorry for being a bit thick

[dx100uk]

yes

 

dx

[jediuk]

dx many thanks for the speedy response.

 

to be absolutley sure:-

 

if principal loan was £60k with £11,850 ppi on top taken out in 2006. Nemo currently reckon account is sitting at £75k.

 

if the fscs find in my favour they will refund me £11,850 plus interest paid plus 8%?

 

then nemo (roughly) will deduct the same amount from the £75k and then apply my payments made to the reduced figure?

 

in addition i havent paid nemo for 6 months and they havent chased - can i ask them to freeze interest during the period in which we were in dispute?

 

if i sell my house before this is resolved is there any way i can prevent nemo from taking the full £75k

 

thanks in advance

[dx100uk]

post 11 explains it

 

dx

[pudsey7]

Hi,

 

We took out a loan in 2005 with Nemo.

 

It was through the broker Bright finance.

 

We tried to reclaim our PPI through Nemo and they said it had nothing to do with them and we needed to go to the broker Bright Finance.

 

I took this to the FOS who advised that I needed to go to the FSCS.

 

They advised that we were eligible for compensation and we received the original premium plus what we had paid in interest to 24th August 2010.

 

I thought that Nemo would still have to rewrite the loan so that it was as though the PPI was never there.

 

They said that they did not have to do this and we have now still being paying interest on the PPI since 2010.

 

My question is should they have rewritten the loan and if so should they now have to also pay back the interest we have paid on the PPI since 2010?

 

Thanks

[dx100uk]

correct

 

its even in the FOS guidelines.

 

dx

[jui8883]

just reading your thread we have much the same nemo have recalculated and taken our over payments and interest owed to us but we now owe a lot more than when we started they want to increase our monthly payments by £250.00 each month what cowboys

[jediuk]

Update. The FSCS refunded my PPI payments to me. However Nemo (and the FOS upheld this!) state they do not have to restructure the loan as the money wasnt paid to them.

 

i dont think this is right. Any advise appreciated.

[Hortz]

Update. The FSCS refunded my PPI payments to me. However Nemo (and the FOS upheld this!) state they do not have to restructure the loan as the money wasnt paid to them.

 

i dont think this is right. Any advise appreciated.

 

It is right. They didn't sell the product and the complaint that was upheld was not against them. Therefore they cannot be forced to do anything.

 

You should cancel the cover (if you haven't done so already) which will generate a rebate, albeit a less than proportionate one. You should then go back to the FSCS and ask to be compensated for the PPI you will pay over the remaining term of the loan as a result of the less than proportionate rebate.

 

If you have already signed a full and final disclaimer then FSCS may not consider it any further but it is worth a shot.

[jediuk]

hmm disappointing. Is the fact that i was totally unaware i was dealing with anyone but Nemo pertinent?

[pudsey7]

Hi,

 

 

Looking for some advice we received a cheque for FSCS back in 2010 for mis sold PPI.

 

We took the loan out through broker Bright Finance.

 

The loan is with Nemo.

 

When we accepted the cheque we were of the understanding that the loan would be adjusted to stop any future PPI interest.

 

I have been round the houses several times and from another post on here see that Nemo do not have to rewrite the loan to exclude the PPI interest.

 

If I had known this at the time I would have questioned the amount with the FSCS.

 

There is still 10 years left on my loan

 

so my question is

 

will I be able to go back to the FSCS and request the subsequent payments that I have made and will make to be refunded?

 

 

Thanks

[dx100uk]

sri you've lost me

 

what do you mean, the ppi was not cancelled?

 

dx

[pudsey7]

As I went through Bright Finance to get the loan (they are the ones who sold the PPI)

then the FSCS refunded me the payments I had made and the original PPI Premium.

 

However, it is Nemo that the loan is with and therefore it is them that we pay the repayments of the loan to and the PPI amounts.

 

When the PPI was found to be mis sold and the refund given from the FSCS

 

Nemo never adjusted the loan and therefore we are still paying the interest of the PPI over the term of the loan.

[dx100uk]

I expect they did

 

how do you know you are paying it still?