rebate on PPI??

LolStevo

Hiya, im sort of asking the same question as last week as i didnt get any replies so please someone help me!!

My mother in law has cancelled her ppi over the phone on a loan with Lloyds TSB, she then received a new loan agreement which she didnt understand!

I got her to call TSB on loudspeaker so i could hear them as her payments only went down by 8.56 per month, (she has had the loan nearly 4 years with 1 year left). she was paying £36 per month for PPI,

So when she asked why it had only gone down by this much the lady in TSB said

"Because u have cancelled it out of the 30 days ur only entitled to a rebate which amounts to £58," she couldnt really explain how the rebate was worked out!

Is this right and why?!?! haha

Hope someone can help me!!!

Thanks guys! xx:money:

RAS

That may well be true, but your mother in law can almost reclaim the PPI from them. Read the link on the front page of MSe about reclaiming missold PPI.

LolStevo

ok thanks RAS but she cannot remember if she actually agreed to the ppi as it was 4 years ago and she doesnt really read things, would this fall into the "didnt no had it/missold" category??

RAS

Does she have a copy of the PPI paperwork? Would it pay out if she stopped work (or whatever it covers?)

Was she specifically told that she could buy the PPI from another provider (who would almost certainly be cheaper). If the PPI is massively more expensive than she could buy the same amount of cover elsewhere, then it was alomost certainly missold.

Was the premium front loaded? These were the subject of a roasting by the OFT recently.

LolStevo

what does front loaded mean? iv got the original loan agreement here and im positive she wasnt told she could get it cheaper elsewhere

RAS

Sometime you take out a loan for say £10000 over 5 years and the PPI is going to costs £17 per month.

Sometimes however, the creditor adds the £1000 PPI cost to the loan as a single premium so the debt is £11,000 and the cost of the PPI is £17 plus interest per month. The creditor gets the PPI payments upfront and gets more income from the interest paid.

if you default on the first debt you owe £10000 minus your payments and the PPI is cancelled.

If you default on the second loan you owe £11000 minus your payments and the cost of the unused PPI is part of your debt.

LolStevo

ook i understand.

So am lookin at the loan agreement now and there are two small boxes at the bottom which are pre ticked:

optional loan protection
and
premium advanced as part of the loan


Are they anything to do with it?

Also does it count that they have took out a completely new loan so the ppi could be cancelled? xx

RAS

As per other message. You need to talk to NDl but I would not allow them to introduce a new loan so that she can cancel the PPI. The rules about debts taken out after April 2007 are different and she could be disadvantaged.

I would be very tempted to do a CCA request on the old debt to see if it is even enforceable.

Paul_Herring

LolStevo wrote: »

ook i understand.

So am lookin at the loan agreement now and there are two small boxes at the bottom which are pre ticked:

PRE-ticked??!? :eek:

optional loan protection

That sounds like your PPI

and
premium advanced as part of the loan

And that sounds like it was rolled up for the term of the loan and added to the loan. (The £10,000 + £1000 mentioned above.)

LolStevo

Yeah thats what i thought so i need to send a new letter but dont know which parts to take out!!! x