help is this correct??

newmum1

hi all i have just called halifax with regards to cancelling the ppi on my loan, the loan was taken out in sept 2004 for £2.500. I was just told that no i cant cancel and that i would have to take out a new loan that would be the only way to do it, i explained that i was told that i was told by the man who sold me the loan that i would most likely be refused if i did not take it out. she then asked for the initials and name of the person which i gave her. I was then transferred to my local branch who informed me the the person who sold me the loan had since been dismissed and they have arranged for me to come in and see them this thurs, and that they will have to restucture the loan but is this correct as i am not sure wht to expect???? can anyone advise me ?

inmypocketnottheirs

I would strongly advise that you approach this from the angle that you have been missold the PPI. It is not permitted to make PPI a condition of getting a loan, and if that is what you were advised I would think the Halifax would rather come to an amicable agreement rather than have you take the story to the press. Don't feel intimidated, they obviously realise something is awry, particularly as the individual responsible has been dismissed.

Good luck, and let us know how you get on.

Avogirly

Definately. Banks really try to push the PPI thing. If they do want to restructure the loan make sure that you have all the facts and figures in front of you, so you know if you are getting a better deal or not.
Do advisors work on commission? Perhaps the individual was dismissed for that, because I read somewhere that banks make loads of money from PPI, expecially if you have a low rate.
Stick to your guns and don't let them get away with anything!

GOOD LUCK!!!!!

asandwhen

This happened to me when I was 18 getting my first loan for a car - I borrowed the same ammount £2500 and barclays said to me that I could not take the loan without protection - I remember at the time saying to them that I was covered with my job but they still said I needed there protection - wish I still had the paperwork to make a complaint (this was 10 yrs ago)

matthew6476

As ex bank worker who sold loans and (eek) PPI:

They make tons of money off PPI, and in most cases the advisors are targetted on how much of it they sell. If the person who sold the loan has been sacked for running a dodgy loan book, they you can expect the bank to look at all of his loans, and if needed, to reshedule them. This will mean that they will look to keep the business, and should fully explain all about PPI, which they have to do now, since the FSA took over loan insurance regulation in January 2005.

You are under no obligation to take it, and any loan is not dependant on PPI being taken. If it was missold, then they should cancel it retrospectively, and either refund the premiums paid so far, or knock this off the debt still outstanding, although this is if they are being very nice to you!

Hope you get what you need!!

Matthew

newmum1

Hi all here is an update went to the bank this morning and what a cheek!! They told me that they would refer my complaint to head office for review. But in the mean time I should take out another loan without protection now does this make any sense, my original loan was for 2.500 @106.68 per month @16.9%
the loan they wanted me to take today was 113.32 per month @16.8% obviously including 2 months penalty for paying off early, i refused this and said that i want to await the outcome of whether they believe that i was missold the ppi. Have i done the right thing?????

matthew6476

Yes certainley.

Wait and see what head office say. They have a real cheek asking you to pay early settlement fees on a loan that they messed up in the fist place (or so it would seem), as it is not your fault you are clearing your loan early. If PPI was misold, then they should be able to re work the loan without PPI from the very start.

The new loan you were quoted is your original debt, PLUS the interest accrued to date on it. This is an example of a method banks have called "making money hand over fist"

Await head office's reply, and if youre not happy, refer it to the Financial Ombudsman, and ask him to look at it

Matthew

newmum1

hi all have received a letter form head office today telling me that they will not be refunding my ppi as "there is no evidence that the advisor acted inappropriately, therefore we are unable to uphold your concerns that the policy was missold" it goes on to say that I can contact the ombudsman which i have just phoned and they are sending me out a form, but what exactly do they do, and what will happen from here???

YorkshireBoy

newmum1 wrote:

...I can contact the ombudsman which i have just phoned and they are sending me out a form, but what exactly do they do, and what will happen from here???

Website: http://www.financial-ombudsman.org.uk/

FAQ: http://www.financial-ombudsman.org.uk/faq/index.htm