PPI advice, could be my lucky day

Old_iron_balls

Hi all

Strange one this, id appreciate your thought and advice.

Popped into my bank today who I have two loans with.
My intention was to ask for the interest rate to be lowered.

The chap serving me was looking into my account while I was telling him how im in debt and trying to sort myself out.
I mentioned that I recently wrote in to cancel PPI on both my loans.
The reply confused me – ‘but you have only got PPI on one of your loans, the other one you have never had PPI on it’

I told him ive been paying for it on both loans. He said according to the system Im only paying it on one of the loans.
The loan in question was took out in August 2002 for £3100. My repayments have been £95 per month. £76.41 + £19.01 PPI
I have the documents infront of me now in black and white !

He said his system said No PPI and payments of £76.41.
I told him to look at my bank statements. Indeed I have been paying £95.42 for 38 months !
He said he couldnt understand it.

I asked him for more details on the loan. He said the balance was £499
I nearly had a heart attack, last night I looked on internet banking and it was showing £1799
Overnight £1300 has been deducted from my loan balance ! ! ! !
Check it when i get home i thought !

The only thing I can think of is that they have received my letter asking to cancel PPI on the loan, realised the !!!! up and refunded me.
I dont know for sure as ive not had anything in writing yet ?
Its strange as ive received a letter regarding the other loan saying they cant cancel the PPI as its over 30 days since I took at the loan ( its been over two years ! )

Anyway, the chap at TSB gave me a settlement figure in writing of £515 and told me to pay it off over the counter (which im doing on payday in five days time)
He said it will be valid no matter whats gone on, system fault etc

Ive just checked my account online and the balance on my loan is as he said £499.21 so Yes overnight its gone down £1300 

Now question is, do I just get it paid off on payday and ask no questions or do I complain etc and see if im entitled to any sort of further refund or compensation ????

Im just glad I plucked up the courage to go into the bank today !
Although It seems to good to be true so im not holding my breath !

Thanks in advance for your comments and advice 

Rafter

Well - £499 sounds more reasonable. That would be an APR of about 7.5%

£1800 outstanding would be an APR of nearly 23% which seems like quite a rip off!

If they have been deducting PPI in error then you should also get all that premium refunded if it is true. 38 months x £17 is almost £650 in premiums paid.

Glad you had a nice surprise today.

R.

Old_iron_balls

The APR is 16.2
Im going to pay the loan off when I get paid in a weeks time using the settlement figure he gave me.
Then I think im going to write in and try and get a refund for the premiums ive been paying.
Fingers crossed !

jobbingmusician

Maybe try for a payment from them for distress, as well? After all, you have been VERY stressed by your debt situation, and even last night you thought you owed £1300 more than it seems you do today! (Depends how big your overall debt is, though, and what percentage of it £1300 is...)

homersimpson_3

similiar story- my friend took out mortgage in joint names with boyfriend and they split up. she lived in town x and worked in town y. she went into branch of building society in town y querying transfer of house into her name and counter clerk asked why she was paying 2 lots of insurance on property- my friend said one for contents and one for building insurance and the mortgage adviser had told her this when she took up mortgage. the clerk called the manager who told my friend the one figure included buildings and contents and so for years she had been paying 2 lots of insurance. the building society refunded all the payments. the point of the story for you is yes if you have been overpaying they must refund the payments.

Old_iron_balls

Well, i received a letter off TSB today in response to my request of canceling the PPI. (note, on two occasions over the phone I have been refused)

It reads...

"I am pleased to confirm that the cancellation has been processed and your loan has been credited with £771.42, which represents the full loan protection premium. Any interest already charged on the insurance has been waived"

My loan was actually credited with £1300 so I dont know where the extra £528.58 came from. Interest ? I dont know.
Just goes to show the pen is mightier than the sword !

Initially I sent two letters requesting to cancel the PPI, one for each loan.

One came back saying that it could'nt be cancelled as its more than 30 days since the loan began.
The other one has been cancelled as stated above.

Funny that as Ive looked at both loans and the terms and conditions are exactly the same !

Im going to send anpther letter regarding the loan with PPI they have said they cant cancel including a copy of my refund letter for the other loan.
Surely they cant refuse one but grant the other if the terms and conditions are identical !

Whats more the amount i paid for PPI on the loan im yet to get a refund on is £1,437 so im not going to rest until they have refunded me !

If all goes according to plan ill of wiped around £2737 of my pile of debt !

here goes nothing !

tattooed_lady

That's an excellent result, let us know what happens next!

Old_iron_balls

Well, get paid tomorrow so I can pay off the £499 left on the loan !
Ive just posted a letter in response to the one they sent me saying they couldnt cancel the PPI on my other loan !

Im a man on a mission ! :cool: