Alliance & Leicester - cancelling PPI

mrssarahh

I wrote to A&L last week to get the PPi cancelled on hubby's loan.

They have written back saying they will cancel the PPI but need to re-issue the loan and the repayments will be higher!

It hardly makes it worth cancelling the PPI.

This can't be fair/ legal can it?

The thing is - what should we do next? Should I write back to them to complain - quoting FSA and threaten Financial Ombudsmen, or would a phone call help?

I am so angry about it, cos its just NOT RIGHT!

The loan/PPI terms say NOTHING about re-issuing the loan and the way it is set out on the agreement is loan repayments and PPI repayments seperately, so I just want to take off the PPI bit and pay the loan bit!!

My mum says she read something on here about A&L doing this but I can't find it - can anyone help me out please?

di3004

mrssarahh wrote: »

I wrote to A&L last week to get the PPi cancelled on hubby's loan.

They have written back saying they will cancel the PPI but need to re-issue the loan and the repayments will be higher!

It hardly makes it worth cancelling the PPI.

This can't be fair/ legal can it?

The thing is - what should we do next? Should I write back to them to complain - quoting FSA and threaten Financial Ombudsmen, or would a phone call help?

I am so angry about it, cos its just NOT RIGHT!

The loan/PPI terms say NOTHING about re-issuing the loan and the way it is set out on the agreement is loan repayments and PPI repayments seperately, so I just want to take off the PPI bit and pay the loan bit!!

My mum says she read something on here about A&L doing this but I can't find it - can anyone help me out please?

Hi there.

Well I would be most annoyed too.....:mad:

I was thinking how long was it when this loan was taken out ?

If you think this ppi as mis sold then you should also try getting a complaint reclaim letter in to them where they would have to pay back every penny of this plus interest.

Did they add the ppi on the loan without your knowledge ?
And was this sold in the branch or over the phone ?

You do know this company were fined for mis selling ppi don't you ?
I know this is mainly to do with loan phone selling, but you can still try to pursue them on this.

Request a written breakdown of everything as it is now hun, this could back you up if you have a complaint to go to the FOS, they must provide this to you.

If the loan has recently been taken out, for instance the last few weeks then they would not have to reschedule the loan, it sounds to me if you cancel the ppi you have to sort of settle this for a new loan where they add the remainder of the existing ppi to pay that one cancelled off.......:rolleyes: .

However I do know loan companies do this but I did not think they repayments would be higher.

If you require further info hun, please could you copy and paste this and take it to the reclaiming ppi discussion thread where you will receive some guidance from myself and others over the following days.;)

Just click on loan, then above that page you will see both success and reclaiming threads, post on the reclaiming one.

Hope to see you there in order to get some help with this, good luck.

Di.
x

AdrianHi

Problem here is paying for the PPI makes the loan lower risk so they can offer a lower interest rate.
No PPI, higher risk loan so higher interest rate.

At the other end of the product, where investors have to decide if they want to invest money in providing you with a loan, they have a decision to make, say a good AA credit rating and lowish return (your loan with PPI) or high risk say B credit rating but a higher return (your loan without PPI).

I don't think anything naughty is beign done here, it's just a fact of how these things work.

marshallka

AdrianHi wrote: »

Problem here is paying for the PPI makes the loan lower risk so they can offer a lower interest rate.
No PPI, higher risk loan so higher interest rate.

At the other end of the product, where investors have to decide if they want to invest money in providing you with a loan, they have a decision to make, say a good AA credit rating and lowish return (your loan with PPI) or high risk say B credit rating but a higher return (your loan without PPI).

I don't think anything naughty is beign done here, it's just a fact of how these things work.

You cannot look at it like that as the PPI is actually another loan with more interest so more debt and costs far more than a stand alone policy so people do have greater trouble making the repayments (more risk there!!). It should not make a difference as to APR and PPI. The APR should come from your credit score... In fact if you cancel the PPI you should not have to have a higher APR cause of this..they are NOT allowed to do this...

I will find the FSA rules on this and post

This is from the link from the FSA


When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan.

http://www.fsa.gov.uk/pages/Doing/Regulated/consumer/tackle/ppi.shtml

http://www.which.co.uk/advice/cancelling-your-ppi-policy/index.jsp

Treating Customers Fairly