Hi Jackl,

Thanks very much, noted.

Regards

Andy

jackl:

1. It would be best to start with what you remember of the conversation yourself. You can then put that to them and see how they react. Advise them to retain any recordings. You will not get these without court action.

3. Most banks got wise to using these after 2005 but I am not sure about this credit company. If they haven't gone through one of these with you your task is easier.

4. No, there should be no penalties attached to it. It is likely to reflect sums taken already at the point at which you cancel. They can be quite arbitrary in their calculations so the best thing is to ask how they get to that figure.

It would be useful to get a copy of your agreement to see how the interest has been charged and any penalty for early redemption. I am assuming yours is a CCA 1974 section 16 (6C) agreement if it is secured on property and it is therefore regulated by the FSA so the Unfair Relationship provisions in CCA 2006 (incorporated into section 140 (A) CCA 1974) won't apply. There are, however, various banking and other codes which may apply. You may also have an argument on Unfair Terms but the starting point is how you got into this in the first place. All PPI cases are at bottom evidential. Mis-sold PPI can taint a related agreement.

Have you thought abouut consulting a solicitor? If your PPI is over £5k (and I suspect it will be on a loan that size as it is usually 20% upwards) your claim could be cost-bearing. The Internet contains details of solicitors who do PPI and CCA claims and most will advise initially free of charge just to see if there is a case. Where there is a home at stake there is often more of a case than in other situations.

1) Wrong. REcording are available under a SAR request, £10. court action means nothing with a SAR.

4) your right, there are no penalties. but there will be early settlement charges which will always apply in some form, whether its a non reg deal, or regulated. Nemo has no control over this as CCA ALLOWS companies to charge this, so they do.

jackl:

You should be able to cancel your PPI any time without any penalty at all but before you do so ensure that you don't need it as the loan has a long term to run. Whether you can recover sums paid or not will depend on how it was sold to you. If it was mandatory (i.e you were given the impression that you had to take it to obtain the loan) then you may well be able to recover any payments made plus 8% interest. This assumes you have not made a claim on it. Check wither you signed a "Demands and Needs" statement, another raft of defence the credit companies use for PPI. They are not written in tablets of stone. The simple truth is that a large proportion of PPI has been mis-sold so that banks coudl offer lower interest rates to attract borrowers. The sting was in the PPI. It sounds as if you have had the worst of both worlds.

Your loan sounds as if it has some redemption penalties attached to it and it might be worth looking first of all at how long these last - it is not unusual for there to be penalties in the first 3 years. Again, without more information about what was said to you when you took out the loan it is difficult to be more precise.

Challenge both and see what response you get. They can't do anything to you whilst you continue to pay. They won't be able to deny your right to cancel the PPI.

early settlement charges last for the first 9 years of an agreement if its a non regulated deal. the first 3 years will always be 6 months of interest plus £175 security release fee. after the first 3 years, the interest charges decrease by 1 month every year, until there is no interest to pay. the release fee will always apply.

PPP can be cancelled at any time. the rebate is non-proportional and will be debited from the balance of your loan. think your rebate works out at approx 7% of the original PPP policy. You would've been supplied with a green a3 sized Nemo PPP policy booklet at the start of the loan. if you havent got that still, give them a call and ask for one to be sent to you. page 14 details the approx rebate percentages if you were to cancel the PPP.

Also, ask the person you speak to about the demands and needs statement. if you were sold the loan through a broker, they wont have a copy of this, but if it was direct through Nemo, they will and will gladly send you a cop of this free of charge.

Thanks Jackl,

Very helpful indeed, I'll look into the aspects you've raised and doublecheck evrything as far as I can before pursuing.

I think PPI is just over £7K on this(!!).

Thanks again.

Andy.

1. It would be best to start with what you remember of the conversation yourself. You can then put that to them and see how they react. Advise them to retain any recordings. You will not get these without court action.

3. Most banks got wise to using these after 2005 but I am not sure about this credit company. If they haven't gone through one of these with you your task is easier.

4. No, there should be no penalties attached to it. It is likely to reflect sums taken already at the point at which you cancel. They can be quite arbitrary in their calculations so the best thing is to ask how they get to that figure.

It would be useful to get a copy of your agreement to see how the interest has been charged and any penalty for early redemption. I am assuming yours is a CCA 1974 section 16 (6C) agreement if it is secured on property and it is therefore regulated by the FSA so the Unfair Relationship provisions in CCA 2006 (incorporated into section 140 (A) CCA 1974) won't apply. There are, however, various banking and other codes which may apply. You may also have an argument on Unfair Terms but the starting point is how you got into this in the first place. All PPI cases are at bottom evidential. Mis-sold PPI can taint a related agreement.

Have you thought abouut consulting a solicitor? If your PPI is over £5k (and I suspect it will be on a loan that size as it is usually 20% upwards) your claim could be cost-bearing. The Internet contains details of solicitors who do PPI and CCA claims and most will advise initially free of charge just to see if there is a case. Where there is a home at stake there is often more of a case than in other situations.

Thanks for the reply.

1. Should I ask for transcripts of telephone conversations, etc?

2. I am awaiting their settlement figure (including charges) in writing at the moment.

3. Can't remember anything about a 'Demands and Needs' statement.

4. Is the disproportionate rebate of £500 on the PPI due to penalties then?

I'm definitely going to dispute both the PPI and the redemption figures. If it wasn't for the fact the settlement figure they quoted hasn't reduced since last Oct, I might have not pursued but as their figure makes selling my property almost impossible now, I'm definitely angry enough to go for it.

Thanks again for your help.

Andy.

You should be able to cancel your PPI any time without any penalty at all but before you do so ensure that you don't need it as the loan has a long term to run. Whether you can recover sums paid or not will depend on how it was sold to you. If it was mandatory (i.e you were given the impression that you had to take it to obtain the loan) then you may well be able to recover any payments made plus 8% interest. This assumes you have not made a claim on it. Check wither you signed a "Demands and Needs" statement, another raft of defence the credit companies use for PPI. They are not written in tablets of stone. The simple truth is that a large proportion of PPI has been mis-sold so that banks coudl offer lower interest rates to attract borrowers. The sting was in the PPI. It sounds as if you have had the worst of both worlds.

Your loan sounds as if it has some redemption penalties attached to it and it might be worth looking first of all at how long these last - it is not unusual for there to be penalties in the first 3 years. Again, without more information about what was said to you when you took out the loan it is difficult to be more precise.

Challenge both and see what response you get. They can't do anything to you whilst you continue to pay. They won't be able to deny your right to cancel the PPI.

Hi,

I have a secured loan with Nemo Personal Finance for £35K over 10yrs.

The loan is 23mths old and I had asked for a settlement figure in Oct 2008 which they said was £42K(!).

I asked for another settlement figure today as I am looking to sell my home and I need to know if I will have enough equity to pay my existing mortgage and the Nemo 2nd charge.

I was told the figure is still £42K!! Does this sound right?

Also, I ask for a revised figure if I were to remove the PPI. This apparently would only reduce the figure by £500.

The PPI is part of the loan and will cost me around £6K over the term according to them.

Anyone have any thoughts on this? Can I dispute the PPI part of the loan?

Thanks in advance.

Andy.