Is there a statutory duty to produce proper accounts on a loan?

[PlanB]

Re: statutory duty to produce proper accounts

It was refunded by the FSCB as the original broker had gone out of business. There were a large number of reasons why it was mis-sold, I don't which one actually persuaded them. I think refunds for these type of 5 year front-loaded policies are more-or-less automatically refunded. You are right, SPPL never sold directly.

Was the PPI refund paid direct to you or back into the loan by the FSCB. If the PPI premium was added in full at the start of your loan are you still being charged interest on it if you didn't use the payout to reduce the loan. And did the FSCB payout include all/any interest charged on the PPI elemant of your loan from the beginning. This matters in deciding whether your lender is being "Unfair" or not.

I'm still baffled as to how you got a full refund for the PPI policy even though it paid out under your claim which suggests it wasn't missold

[PlanB]

Re: statutory duty to produce proper accounts

. . . . got into arrears . . . . missed four payments - paid off three payments with a lump sum, went into an agreement to pay off the rest with overpayments each month. . .

Was your agreement in writing and did it spell out what monies (exact amount or non-specific random overpayments as and when you could afford them?) would be allocated where and when each month?

[Sappho]

Re: statutory duty to produce proper accounts

Actually it not that unusual to get a PPI refund even if they have paid out because the front-loaded loans (which only pay out for one year) are generally held to be unfair because they are very expensive and you only get value for money if you actually die in the first five years. For the remaining term of the loan there is no cover yet you are still paying for the PPI. PPI cannot be cancelled so if your circumstances change (eg going self-employed) you have paid for something you cannot claim on. They are very different to the monthly premium PPI's where you would cancel them if your circumstances change. I know many people are deterred from claiming back their PPI if they think they are ineligible as they have successfully made a claim. The delays by the insurers meant that in fact we made a net loss as the amount we could claim were far outweighed by the charges. We did get back the interest as well less the amount the insurance paid us and eventually we got back the charges as well thanks to the FOS. We feel that we did well, though it has taken us a year of battling.

In answer to the other question, the agreement to pay an overpayment to reduce the arrears was in writing and it was for a fixed sum each month.

I think what you guys are saying is that the company is being unfair to us in not using the overpayments to reduce the arrears but because the amount is being put in the capital account they are not committing fraud or doing anything illegal. Which answers my question. Thank you!

[PlanB]

Re: statutory duty to produce proper accounts

In answer to the other question, the agreement to pay an overpayment to reduce the arrears was in writing and it was for a fixed sum each month.

I think what you guys are saying is that the company is being unfair to us in not using the overpayments to reduce the arrears but because the amount is being put in the capital account they are not committing fraud or doing anything illegal. Which answers my question. Thank you!

In which case you should progress your complaint to the FOS asap so the lender can't start any possession proceedings while it's being investigated as long as you keep up with those agreed payments

You want to get the money you pay each month credited to the right place, and any extra interest which has been added as a result of the lender allocating it to the wrong place should be refunded. You won't achieve any of that if you get them sent to prison for fraud

Good Luck and let us know how you get on