AA financial Services Loan

Emma_Baxter

Hi Everyone!
About 3 years ago I took out an unsecured loan with AA financial services for £5000, with monthly payments of £100. I also took out PPI which took my monthly payments up to £150

At the time of the application (over the phone) I had said that I didn't want PPI, I distinctly remember the agent telling me that along the lines of "are you sure as it may affect your application for the loan" As I was in need of the money I thought oh well I may as well take it.

I've been happily making each payment ever since until I received an unrelated phone call from AA a few months ago and out of curiosity I asked them how much more money did I have left to pay back and they told me along the lines of around £4000, I was shocked as I thought the amount should be MUCH less so I asked them if there was a mistake. They told me that I originally took out a loan of (roughly) £8000 hence why I had about half of that left to pay back. The extra 3 grand or so was the PPI which I am now really upset about because it was never made clear that I would be taking out a loan AND paying interest on the PPI amount.

Am I just stupid or is something not quite right here?

Also I know I can cancel the PPI at any time but if I do will I be entitled to any money back from the PPI that I've paid already?

Thank you all in advance….

standupguy

From what you say Emma you have been misold the PPI in that you you were told that basically if you did not take PPI you may not get the loan.

So you were coerced in effect.

Assuming you have not claimed on the PPI you have two options.

Firstly you can make a complaint that you were mis-sold the ppi and get a full refund of the the PPI element including interest.

Alternatively you can just cancel the PPI and that will reduce the money you owe from now.

Have a read of the PPI mis-selling and re-claiming threads