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Hi,
I am 65 and have a bank loan which I took out in 2004. About this time last year my husband had a nervous collapse and couldn't run our business, and although I'd been helping him for five years, I couldn't physically run it as I have developed arthritis.

I claimed on the payment protection policy and they paid my loan for me, but in September, when I was 65, they stopped, as they don't pay from that age, even though the interest and insurance was loaded on at the beginning, (the loan carries on until I am 72.

Now, they are claiming the monthly loan amount and won't agree to reducing it, and even bounce cheques that go from my account, so that they can claim the payment each month. My solicitor is fighting the PPI and the possible mis-selling of the loan, as all this was not made clear to me at the beginning, and our joint income is not enough to pay it now........Can anyone help, please.

Hi Kath- and welcome.... can I ask who the Lender is and the purpose of the loan? Was it secured on your home or the business assets, and did you take out any personal guarantees?

Kind regards

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

Hi
Well from the info supplied it is clear that you were mis-sold the insurance.
Do you have any other unsecured debts ?
Regards


Andy Davie
IVA.co.uk Spokesperson

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Andy

I agree that mis-selling is an option and I also question how the lender argued the "loan into retirement" question from an underwriting perspective BUT it is possible that the PPI was a 3 year term policy perhaps?

Kind regards

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

Another mis-sold PPI policy! It look as if your solicitor is doing whatever is necessary with regard to this loan, so there is not much else to do until the outcome of this is known.

Is this your only debt?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Mis-selling of MPPI is a very hot topic in the mortgage industry and the FSA take a very firm stance on this, a colleague pointed out to me that 3 more brokers were fined this week, you only need to google "fsa fines" and you will see for yourselves the stance the FSA take on this. MPPI is a good product if sold and advised correctly, I looked at the awards for best insurance broker in the recent publication of broker and packager awards for 2007 and was pleased to see a company actually being awarded for providing this product, having said that John Tegg(coveritall) has an excellent knowledge in this field.Tony

F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Principal : All Mortgage Products

www.debtadvisorybureau.co.uk
www.allmortgageproducts.co.uk

Directly Authorised with FSA :304244

When you took out the PPI it should have been clearly explained to you at point of sale that all cover and benefits would stop at age 65.

It should also have been included in a statement headed 'Significant exclusions' in your insurance Keyfacts documentation.

If it was not, then you have a clear case for mis selling and should make a complaint in the first instance to the loan provider.

Benefits stopping at age 65 is a fairly standard exclusion in PPI.

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Hi kath2,

I wish you the best of luck in resolving this situation as it seems you have had a raw deal.

As Tony Parsons says the FSA are rightfully taking a strong stance on this. I had a look at the Google search as Tony suggested and the case with the the Regency Mortgage Corporation is instructional. They were the first agency fined for mis-selling MPPI to a vulnerable financial group (right-to-buy council tenants) and the FSA went in hard.

The message is out there that such sales have to be handled in the right and proper fashion.

I'm sure Mike and Tony will agree with me in saying that all readers should exercise similar caution in buying insurance products as they do in choosing someone to help with debts or mortgages.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

Regency Mortgage Corporation were fined for reselling MPPI to customers that were already covered or to customers who could not possibly make a claim. I was a manager at Regency for many years prior to regulation and helped them prepare for regulation.

I was absolutely gobsmacked when they were fined, their main problem was due to lack of record keeping rather than money grabbing.

Yes I do agree with you Andrew, but would just add that the onus for caution & care especialy with clear explanations and warnings with PPI or MPPI is on the advisor rather than the customer.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Whole of Market Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Directly Authorised Firm FSA No:313790

CeMAP 1,2 & 3 qualified
F.P.C 1,2 & 3 qualified
Financial Planning Certificate
Certificate in Regulated Customer Care
Certificate in Regulated General Insurance
Associate of the Charted Insurance Institute

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

Absolutely Mike. It's a complicated subject and advisers have a huge responsibility and obligation to their clients.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

Morning.... I had lunch with the editors of two mortgage industry mag on Friday.... and there may be more news to come out of Regency!

Kind regards

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

hmmm, Then let me get in first - they have just laid off the majority of their staff... And have serious financial problems.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Whole of Market Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Directly Authorised Firm FSA No:313790

CeMAP 1,2 & 3 qualified
F.P.C 1,2 & 3 qualified
Financial Planning Certificate
Certificate in Regulated Customer Care
Certificate in Regulated General Insurance
Associate of the Charted Insurance Institute

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf