Loans Q&A

Q. My PPI policy was partly mis-sold

Answer.

My bank sold me Payment Protection Insurance (PPI) when I took out a mortgage 10 years ago. I have always been self-employed and stated this when I took out the policy. I tried to make a claim a few months ago and I am now being told I am not eligible because I was self-employed, although nobody mentioned this when I took the insurance. I have now claimed for mis-sold PPI and the bank have said they will only pay half of it, as they paid me out for a sickness claim 12 months ago. What can I do?

Our banking expert says:  The Financial Ombudsman Service does not accept that a policy can be half mis-sold. This makes sense, as the bank or building society could not possibly have known if the consumer would have bought the PPI if they had known they would only get half the protection they expected. Your case is not typical, and you should let the Ombudsman settle your claim if your own efforts are not successful.

Q. Can I reclaim mis-sold payment protection insurance?

Answer.

I have been mis-sold payment protection insurance (PPI) for an Egg credit card. Will the Financial Services Association (FSA) help me to reclaim the amount I have paid out?
Philip Marsh, Godalming

Our finance expert says: Egg has already been fined for mis-selling PPI over a period of two years.  According to reports, 40% of sales calls to customers pressured them to sign up for PPI which was not suitable for them. Egg was instructed by the FSA to write to customers, and give them a phone number to call if they were mis-sold PPI. Contact Egg directly if you have a complaint and if they are not helpful, contact the FSA o the Consumer Credit Association.

Q. I can´t pay my car finance repayments

Answer.

I bought a car 18 months ago and have been making repayments each month since then. I have recently lost my job and can no longer pay for the car. Can I take it back?

Jack Preston, Shrewsbury

Our money expert explains: Car finance loans can differ significantly, so it depends really on the terms and conditions of the loan as to whether taking the car back is a viable option. If you have a hire purchase (HP) agreement in place, you can return the car after 50% of the loan has been paid. This is referred to as a voluntary termination and allows you to cancel the loan if repayments can no longer be made. If you have a personal contract purchase (PCP), you may have an option to buy the vehicle at the end of the payment period – which is known as a balloon payment. With this arrangement you can either buy the car or hand it back to the dealer. Contact the finance company directly to find the best solution for you.

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Answer.

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