Cancelling PPI CAN BE DONE!!!!!

maforduk · 29 March 2006 at 1:33PM

Good luck with the Credit Card change, I don't think that they will give you the lower rate though as their for New Customer's!

If they do though, please let me know as I have a Credit Card with Halifax too and would love to get a lower rate.

Reformed_Money_Waster · 29 March 2006 at 4:20PM

I've had a great result regarding my Lloyds TSB loan. As stated earlier in this thread I was paying a massive £91 per month PPi on a £25,000 loan. I sent a letter off asking for it to be cancelled about three weeks back, and promptly received the 'we are looking into it' letter, along with a code of practise.

A few days later I received the same letter again, and last week I *again* received another variation of it, but from the Lloyds TSB insurance this time rather than customer complaints. I also received a phone call from them to confirm the details I put in my letter, and was assured that the investigation into the matter would be settled within a few days.

This morning I received a long letter saying that they had been in touch with my branch, and had found that I had not been mis-sold the PPI, stating that all the information had been offered to me, and that I signed paperwork at the time to acknowlegde that. It also added "The seller who interviewed you is an experienced account manager and is fully conversant with the Financial Services Authority selling guildlines which regulates the sale of this product."

So, just as I was feeling quite disappointed I reached the part of the letter saying "As you are a valued customer of Lloyds TSB however, I am prepared on this occasion to agree to refund your insurance premium, plus interest to date, from the date that you raised your complaint, 6th March 2006, as a gesture of goodwill. This refund will be made on the condition that the policy will then be cancelled and further cover will be provided. You will be unable to make any claims under the policy irrespective of the nature of that claim. If you accept this refund, the amount £4,347.13 plus interest to date will be credited to your loan account within 21 days of your acceptance." :T

All that is left for me to say is thanks to the people here who helped me with this matter, and to wish equal success to all the others that are also trying to get their PPI cancelled.

lombardox · 29 March 2006 at 4:44PM

Hello all,

Not sure this is the right forum for this. Feel free to redirect me if it isn't as I'm a newbie here.

I have been inspired by your tales of success in clawing back PPI cash from unscrupculous lenders and was hoping you might be able to give some advice.

The sorry story starts last year when my girlfriend who had a lot of debts (mostly from renovating her flat) scattered around various credit cards, took out a secured loan for 40k. It was supposed to be relatively short term thing until this summer when her current mortgage deal runs out. The plan was to remortgage and include the debt from the secured loan in the new mortgage. As I sure many of you moneysavers will point out this may not have been the smartest move. To make matters worse she opted for Payment Protection Insurance. You've guessed it, this PPI is of the Single Premium variety so they whacked another 7k onto the loan which she has been paying interest on.

Recently when she went to enquire about the costs of paying off the loan early she was told that she would be charged 6 months interest on the amount outstanding (in fairness the salesperson she spoke to when taking out the loan made this clear). However the real killer is the PPI premium which they are saying will only partially be refunded. When I say partially I mean 1k out of the 7k that it originally cost. The upshot of this is that with charges etc if she pays off the loan now she will be charged 48k - 8k more than the original!!!!

So it seems from this thread that people have had success in getting PPI refunded from unsecured loans, but does anyone know if the same tactics would work in this case?

I'm thinking the best approach might be to claim that the policy was mis-sold. She says that she specifically asked about early repayment and they made it clear that there were penalties, but made no mention of the PPI issues. She was genuinely horrified and upset when she found out recently. Also it's debatable whether she ever needed the insurance in the first place as she's part of a final salary pension scheme at work which has generous life assurance as part of the deal. Her work has a pretty solid record of sick pay as well. I can't confirm if the finance co knew about the pension but I imagine they did.

Any ideas on how to approach this problem other than sheer panic???

Old_iron_balls · 29 March 2006 at 10:21PM

Reformed_Money_Waster wrote:

If you accept this refund, the amount £4,347.13 plus interest to date will be credited to your loan account within 21 days of your acceptance." :T

absolute RESULT ! fantastic :T :T

Old_iron_balls · 29 March 2006 at 10:25PM

lombardox wrote:

So it seems from this thread that people have had success in getting PPI refunded from unsecured loans, but does anyone know if the same tactics would work in this case?

welcome aboard

This is a little complex for me, but im sure someone more knowledgeable will be along to help shortly.
Hang in there

maforduk · 30 March 2006 at 11:08AM

This is the letter that I recieved off of them:

Our reference: XXXXXXXX
24 March 2006

Dear Mr Ford

I refer to your recent letter. You applied for a loan online and after being accepted you noticed that it is a protected loan, which you have mentioned that you did not want and did not choose to have. You have been advised that you can cancel the PPI contract at any time and recieve a partial refund of the premiums paid. However, you feel that you were mis-sold the insurance and have asked for a full refund of the whole premium.

The Barclayloan you refer to was opened in November 2003 and was taken out for a period of 5 years. Once the forms of agreement have been returnd to us, the funds from the loan are released into the customers account and you have entered a legally binding contract.

A further letter is issued enclosing a "Rights to Cancel" following the opening of the Barclayloan, giving you a 5 days return should you not wish to proceed with the Barclayloan or if you do not agree to any of the original terms.

Once the insurance protection request has been sent to Barclays Insurance and accepted by them, a policy document is sent to you giving you 30 days to canel at no cost to the customer.

If no response is recieved following these letters then we assume that you are happy with the terms of the loan.

I am sorry, but I do not feel that the loan has been mis-sold and I cannot agree with your request for a full refund of the insurance premium.

You can reschedule your borrowing by applying for a new Barclayloan without insurance and with the proceeds repay your existing loan. A refund of the remaining insurance premium would then be available.

You can apply for a new Barclayloan by visiting a branch or by telephoning Barclayloan Direct on 0500 200 250.

I hope I have answered all your concerns. If you would like to talk about this further please call me on 0800 282 390. I will keep your complaint file open for 8 weeks so you have time to consider my response. If I have not heard from you by then, I will regard your complaint as closed.

Our aim is to resolve all complaints internally, although we recognise this may not always be possible. If we are unable to agree a way forward you may be able to ask the Financial Ombudsman Service to review your complaint. We will help you if you would like to do this; however, I hope we can resolve matters for you before you take this step.

You can find more information about how to deal with complaints and the Financial Ombudsman Service in the leaflet enclosed with our letter dated today.

Please accept my apologies for any inconvenience caused.

Yours sincerely

Paul Crump
Customer Relations Manager

================================================== ========

Anyone have any advise on this please?

EthelBloggs · 31 March 2006 at 11:39AM

Just thought this might be of interest to some of you

I called LloydsTsb this morning about cancelling my PPI, was categorically told NO by the snotty staff member I spoke to and when I asked for an address to write to as I would like to have this in writing she said there was no point and refused to give it, lol.

Anyway, I thought I'd call back and try with someone else and was put directly through to the PPI department. Got a lovely chap who when I explained the circs, advised me to go down the mis-sold route and that I'd more than likely get a favourable response. He gave me all the info I needed and even wished me luck, hehehee

So.. I've just printed off my letter and am gonna post it this afternoon, we shall see what happens - hopefully it will get rid of my loan altogether as it only has 5 months left on it.

I've also done the same with Studio Cards, who I foolishly bought a washing machine, dishwasher and fridge freezer from in November ( they all packed up at the same time and I was skint soo......... ) and the original £900 has gone up to over £1200 despite me making more than the minimum payments each month grrrrr!!!!

mich_city · 31 March 2006 at 7:44PM

Hi everyone..

Been following this thread with interest..

Used the template letter of complaint to cancel the PPI on 2 loans.. I've had replies from the companies concerned regarding these..

One just stating they have cancelled the PPI (nothing else)

The other gives me the official line - re: the terms and conditions of signing the PPI form etc.. They do however offer that I contact them to extend/rearrange the loan!

My next step is to write another letter telling them I'm not happy with their response.. My trouble is I'm not very good at official letters of complaint.. I'd be very grateful if anyone can point me in the direction of, or pm a copy of any template letters that may be of use for this..

Thanks so much..

maforduk · 3 April 2006 at 10:57AM

mich_city wrote:

Hi everyone..

Been following this thread with interest..

Used the template letter of complaint to cancel the PPI on 2 loans.. I've had replies from the companies concerned regarding these..

One just stating they have cancelled the PPI (nothing else)

The other gives me the official line - re: the terms and conditions of signing the PPI form etc.. They do however offer that I contact them to extend/rearrange the loan!

My next step is to write another letter telling them I'm not happy with their response.. My trouble is I'm not very good at official letters of complaint.. I'd be very grateful if anyone can point me in the direction of, or pm a copy of any template letters that may be of use for this..

Thanks so much..

https://www.consumeractiongroup.co.uk

KEZZAE_2 · 3 April 2006 at 9:02PM

Hello All,

I'm really peed off with Alliance & Leicester. I sent them a letter last week requesting that they cancel my PPI insurance on my loan. They wrote back to me today saying that am I sure I want to do this, and if so they will have to cancel the loan account and set up a new account. Payment at the moment is 245 per month, of this 46 is PPI, new payment will be 216 per month without PPI. I can't help but feel I have been "done"..... Anyway, I've read the terms and conditions and it says you can cancel the PPI and may be entitled to a part refund. I started paying in July last year so have paid 9 payments so far.
What do you think I ought to do....?? I'm absolutely determined that they're not going to get the better of me, so am prepared to write back querying what they have told me
Thanks so much
Kezza

Cancelling PPI CAN BE DONE!!!!!

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free