Alliance & Leicester PPI reclaim

BUMBA_2 · 18 February 2009 at 1:26PM

Please help, I successfully reclaimed my PPI from Alliance & Leicefster - they offered me 2427.21 full refund of the PPI. I fully expected that amount to be deducted from my outstanding loan account which at the 30th January 2009 stood at £4589.11 which would mean I have £2161.90 left to pay. To my surprise i received a new fixed-sum loan agreement for total amount payable of £4,205.65 when i phoned on friday to challenge this basically i was informed that a new loan agreement had to be arranged and all the interest is loaded at the begining of the loan. I basically said that they had given me back on one hand they took back with the other. The lady on the end of the phone then "threatened me" if i didnt sign and return the agreement ........... I am quite a strong person and challenged her that she had just threatened me and again reiterated they had given in one hand and taken in the other. That i didnt want a new loan but the PPI taken of the original. We argued for a little while and when i wouldnt back down she said she would get a manager to call me today. Can you advise me of my rights please Martin

maxdp · 18 February 2009 at 1:58PM

BUMBA wrote: »

Please help, I successfully reclaimed my PPI from Alliance & Leicefster - they offered me 2427.21 full refund of the PPI. I fully expected that amount to be deducted from my outstanding loan account which at the 30th January 2009 stood at £4589.11 which would mean I have £2161.90 left to pay. To my surprise i received a new fixed-sum loan agreement for total amount payable of £4,205.65 when i phoned on friday to challenge this basically i was informed that a new loan agreement had to be arranged and all the interest is loaded at the begining of the loan. I basically said that they had given me back on one hand they took back with the other. The lady on the end of the phone then "threatened me" if i didnt sign and return the agreement ........... I am quite a strong person and challenged her that she had just threatened me and again reiterated they had given in one hand and taken in the other. That i didnt want a new loan but the PPI taken of the original. We argued for a little while and when i wouldnt back down she said she would get a manager to call me today. Can you advise me of my rights please Martin

Hi There

Firstly congratulations on your offer from A and L.

It is quite normal for them to use the refund to reduce the amount you owe them. They should refinance the loan at a similar rate or less than the original. I wonder if you could ask them to give you all the figurework on how they worked out the refund and how they are restructuring your loan.

If you could do that and post it on here I am sure that Turboman will have a look at the figures for you . He is very clever with them.:D

mikegilbert · 18 February 2009 at 2:01PM

This makes your blood boil when it happens. First they load up the interest at the start of the original loan which you pay, then when you think that the refunded PPI could be used to pay off part of the outstanding loan, they insist you take another fresh loan and whack you for another load of front end interest. I would suggest you tell them to stuff it, keep the PPI money owed and treat yourself. If you did want to reduce the outstanding loan they would probably argue that it has to be paid off in its entirity ( crafty of them, thus denying you the chance to pay off part of it with PPI refund). What would be the settlement figure for the outsanding balance, it may be lower than you think, especially if you calculated it yourself on your monthly payments x payments remaining. Of course, you could write complaining about the service as a whole and suggest that they are denying you the opportunnity to reduce your outstanding loan and as they missold you the PPI the FOS says that you should not be in a worse financial situation than when you started it. You will need to look up FOS findings. Try also that they take this lump sum without penalty and reduce your loan as a goodwill gesture on their part.

BUMBA_2 · 18 February 2009 at 2:31PM

thank you for your responses maxdp & mike. I am finally trying to take control of my finances and think im going great guns then this happens! The ironic thing was when i was having the "argument" with the woman on the end of the phone at the end of the conversation she agreed with me. To note they should have rang me at 10.30 today havent heard from them yet !

mikegilbert · 18 February 2009 at 4:58PM

you may have ammo if she agreed with you.She was the company's front line representative after all. If she agrees rightly or wrongly, personally or not she represents that Co. you could reqest a transcript of the conversation from them if you feel that strongly

oscar52 · 19 February 2009 at 9:37PM

I have reclaimed my PPI from A&L on my loan - they new agreement is nothing to worry about.

In order for them to remove the PPI, they have to set up a new loan (which is at the same interest rate as your previous one) The amount of the loan will be for a similar balance to that your have now. However, you will also recieve a cheque to the value you have been told - this is your refund. Your new loan is alos £389 lower than your current outstanding balance.

Apparently, they cant just place the refund against the loan - they have to issue a cheque.

BUMBA_2 · 20 February 2009 at 4:11PM

Thanks Oscar52 - signing form as i type!

penny_ogrady · 22 March 2010 at 11:24PM

:eek:Has anyone got a phone number for a&l complaints dept? I wrote to them early november - still havent had a reply about my ppi info, but my chqs been cashed late nov...

di3004 · 22 March 2010 at 11:35PM

penny_ogrady wrote: »

:eek:Has anyone got a phone number for a&l complaints dept? I wrote to them early november - still havent had a reply about my ppi info, but my chqs been cashed late nov...

Hi there

They have 8 weeks to respond in full, if you hear nothing you can move on to the Financial ombudsman service (FOS) if you want to as they have ignored you.

However, did you post by recorded delivery and checked they did receive the letter?

I would maybe then check first and contact this number here,
Phone 0844 561 9790†. We are available Monday to Saturday between 7am and 11pm and Sunday between 8am and 10pm.
Write to us at Let’s Work it Out, Alliance & Leicester plc, Carlton Park, Narborough, Leicestershire, LE19 0AL

Found these details here:
http://www.alliance-leicester.co.uk/customer-service/complaints.aspx

Good luck, please keep us posted.;)

Alliance & Leicester PPI reclaim

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