Cancelling PPI CAN BE DONE!!!!!

scotsgirl_3

dixie06 wrote: »

Thanks Scotsgirl, will give it a whirl although it was interest free credit so shouldn't be any interest. Can u believe they want to charge £150 for 18 months worth of interest free credit......scandalous!!

ah, the old " interest free" chestnut!!!

As you've discovered, it's not actually interest free, but what is called an " interest rebate" period , most likely. Normally DFS set them up this way: basically the interest is added on from the word go. If, as you do, you have an 18 month "interest free" period then if you pay the agreement off before the 18 months is up, then you don't pay the interest, just the orginal amount - effectively its "rebated" from the account...

if you don't pay within the 18 month, then it stays put! I know DFS are really vague about this, I've had so many customers who've been caught out ( I work for the darkside, sorry, blackhorse lol) but because it is on the actual agreement.....
:rolleyes:

chris2004

Hi
Can anybody explain to me why when i cancelled my ppi with Black Horse TSB and my loan protection was 40.00 a month on top of my loan. I received a letter saying that i will only be 25.00 better off and not the 40.00 that i thought.
Chris

cardhupenguin

I took a loan of £10,000 over 10 years with the Bank of Scotland before they merged with Halifax and was "kindly" advised to take out PPI. What wasn't explained to me was that the PPI costs were lumped into my loan with interest also charged on that over 10 years. As a result i am going to end up paying back nearly £30,000 in total. Now that the banks have merged, not one of the staff seem able to help me and letters remain unanswered.
I may as well have taken the loan out with a loan shark and still have paid less!

scotsgirl_3

chris2004 wrote: »

Hi
Can anybody explain to me why when i cancelled my ppi with Black Horse TSB and my loan protection was 40.00 a month on top of my loan. I received a letter saying that i will only be 25.00 better off and not the 40.00 that i thought.
Chris

when you say it was £40 a month on top, was this an amount that showed monthly on your statement, or did you just divide the total costy the number of months?

if it's the latter, then i suspect the reason for this is that as far as I'm aware the PPi is not rebated evenly over the length of the loan. Basically because earlier on, the risk is higher as the balance is more - so whilst you don't see the calculations it is mmost likely that when the prices are worked out the PPI may actually cost, say £80 for month 1 and by the end of the agreement may actually only be costing around £10 per month

hope this makes some sense! I suppose its kind of like interest in the way a rebate is worked out - so if you, say, took out a loan over 48 months but paid back in full after 24, you would get a rebate, but it wouldn't be as much as half of the interest.

Scrimmo

Hi, In response to Wicked Witch and craigmc.

I am in the process of trying to claim back PPI from GE Money.
I have written to them twice and been given the standard replies.
They have offered a refund of 20% of the premium as a gesture of goodwill.
However, when interest is added, the full refund should be £3311 so their offer is nowhere near enough. I haven't even taken into account the interest which would have been added to the loan as part of the PPI.
I last wrote to them giving them 14 days to respond, they have not done so and I have now issued a claim through MCOL.
Just have to wait and see what happens.

Good luck to all of you in this battle.

Cheers

Scrimmo

carlk_2

Hi

My girlfriend after two years has shown me the contract she signed for her loan. Again like various other people have mentioned she signed the loan under the impression that if she did not take out PPI then she would not beable to get the loan. The loan is for a 7 year period. When we phoned up to cancel the PPI we were told we would be eligable for a refund of less than 25% of the origonal charge on top of this they have charged her 25% interest on a payment protection loan. Surely this is not right for anyone?

The company (Halifax) also said that by cancelling PPI that she would have to take out a new loan and that the interest rate would increase from 6.5% to 13.9%, why should this happen?

She has no CCJ's or ever missed payments on anything.

She is trying to get out of debt by having consolidated other debts in one big loan yet they are just getting her further in. Can anyone help us sort this out.

These people pray on people that are not sure what they are signing and they make everything look good, when really it's not. They should not get away with this.

Scrimmo

carlk wrote: »

Hi

My girlfriend after two years has shown me the contract she signed for her loan. Again like various other people have mentioned she signed the loan under the impression that if she did not take out PPI then she would not beable to get the loan. The loan is for a 7 year period. When we phoned up to cancel the PPI we were told we would be eligable for a refund of less than 25% of the origonal charge on top of this they have charged her 25% interest on a payment protection loan. Surely this is not right for anyone?

The company (Halifax) also said that by cancelling PPI that she would have to take out a new loan and that the interest rate would increase from 6.5% to 13.9%, why should this happen?

She has no CCJ's or ever missed payments on anything.

She is trying to get out of debt by having consolidated other debts in one big loan yet they are just getting her further in. Can anyone help us sort this out.

These people pray on people that are not sure what they are signing and they make everything look good, when really it's not. They should not get away with this.

Hi Carlk

Have a look at other parts of MSE site for reclaiming PPI. It sounds like you may have a chance of arguing that you were mis sold the PPI on the grounds of believing you would not get the loan without it. You may be able to get the full premium refunded as I am trying to do.
Take a look at the letter at the start of this thread and adapt it to suit your needs. Check out other sites such as CAG for additional advice.

Good luck

Scrimmo

pete1982_2

hi members of MSE, iv a quick question for you all i followed the templates on here and i seem to have come to some success (big thankyou) although there is part of my final letter which i am unsure of just wondering if anyone can shed some light on it :-

"As part of the early loan settlement, an up to date rebate of the interest and insurance premium will be calculated in the final repayment figure. I have also arranged for a further refund of insurance and interest already paid, as part of the settlement figure"

Does this mean that i like other fortunate members will be getting a cheque for the insurance/interest on insurance back? Or not cant work it out

thanks for your help MSE

CAFCGirl

GRRRRRRRRRRR!

I've just been totally fobbed off by Abbey.

I've phoned up to cancel my PPI, not a problem she says.
But I have to take out a new loan, which will be for £2550 (my outstanding balance is £2502.02) as it has to be the nearest £50. Did tell her I would send in the £2.02 but she didnt bite!

And that it would also be over 24 months, which is one month later than my current loan expires, and my payments would decrease from £134.18 to £127.67.
And thats on a typical APR is 19.9, even though my original loan was 22.9%, she highlighted that I would probably end up with the higher rate.

So basically it's going to end up costing me more money to cancel the bl&&dy thing!
Surely this can't be right?

Absoluutbeginner

pete1982 wrote: »

Does this mean that i like other fortunate members will be getting a cheque for the insurance/interest on insurance back? Or not cant work it out :)QUOTE]

Hi, the way I read it, they are simply deducting all the money owed to you, from the final settlement figure. Therefore you will be paying off your loan earlier than originally agreed. :think:

Will be interesting to see what transpires. Good luck!!! I'm still trying.