PPI Reclaiming discussion Part III

di3004

starshaped wrote: »

Hi guys

Hoping this thread is the right place to post this query - if not, sorry!

I'm wondering if I am eligible to reclaim PPI. It's a bit of a complicated story. I took out a personal loan with HSBC in 2004, and took their PPI with it, which was paid as a lump sum at the beginning of the loan (as I've gathered is one of the criteria for reclaiming). In February 2005 my circumstances changed, and I went to HSBC to ask for an extension on the loan. What actually happened was that they gave me a new loan, and paid off the old one with it, so the PPI subsequently was also cancelled and paid off.

I also took out PPI with the new loan, which is due to be repaid in November 2009. However, here's the crunch - I fell ill in November 2005, had a long period off work after which I eventually had to resign altogether. I am still ill now, and the PPI payments are still covering my loan, and are likely to do so for the duration of the loan given that my prognosis is long-term.

I know I cannot claim a refund on the PPI I am currently claiming on. But I'm wondering if I will still be allowed to claim on the previous policy? If I write to them to request a refund, will they look at my account, see I'm now claiming on another policy and immediately reject me? As far as I am aware, the policy was cancelled when I took out my new loan, and paid off in full.

I am not sure where I stand and was wondering if anyone had any advice for me? Thanks so much in advance

Hi there
Please bear with me, having a few computer probs at the moment one of us will get back to you on this shortly to help out where we can.
Thanks for posting and please refresh and a check out now and again for any response on this.;)
Cheers.

di3004

starshaped wrote: »

Hi guys

Hoping this thread is the right place to post this query - if not, sorry!

I'm wondering if I am eligible to reclaim PPI. It's a bit of a complicated story. I took out a personal loan with HSBC in 2004, and took their PPI with it, which was paid as a lump sum at the beginning of the loan (as I've gathered is one of the criteria for reclaiming). In February 2005 my circumstances changed, and I went to HSBC to ask for an extension on the loan. What actually happened was that they gave me a new loan, and paid off the old one with it, so the PPI subsequently was also cancelled and paid off.

I also took out PPI with the new loan, which is due to be repaid in November 2009. However, here's the crunch - I fell ill in November 2005, had a long period off work after which I eventually had to resign altogether. I am still ill now, and the PPI payments are still covering my loan, and are likely to do so for the duration of the loan given that my prognosis is long-term.

I know I cannot claim a refund on the PPI I am currently claiming on. But I'm wondering if I will still be allowed to claim on the previous policy? If I write to them to request a refund, will they look at my account, see I'm now claiming on another policy and immediately reject me? As far as I am aware, the policy was cancelled when I took out my new loan, and paid off in full.

I am not sure where I stand and was wondering if anyone had any advice for me? Thanks so much in advance

Hi its me again lol.:D

First of all let me say how sorry I am to hear of your illness, and hope your health improves.;)

When you had the ppi from the start, did you want this? or did they say you had to have this to be accepted for a loan?

You are currently claiming on the present ppi.

May I ask who sold you the loan (the broker from the start of the first loan)?

When you have another loan from the same lender, even though its a new loan, the old loan and ppi is calculated into the new loan sort of thing when settling.

If you feel you were mis sold on the first loan, I think you could try to reclaim on this and your right, not on the present one as you are claiming from this.;)

I am hoping that someone else will come along and confirm this.

But check out the above red box reclaim £1,000's, click on that and some information is on there about ppi mis selling and a reclaim template letter, use your own words and add your own mis selling reasons, they have 8 weeks to respond - as usual post by recorded post.

Let us know how you go and we will take you to the next step if not successful first time round.

Good luck hun, hope everything gets better for you.

Di.
x

emlee-123

hi,

i'm new to this and not sure if I've replied to a message or posted my own question but here goes and hopefully someone will answer.

I took a loan out in 2006 - £4000 over 4 years. At the time I was asked to fill a questionnaire in and was told the answers pointed out that It would be strongly recommended to take out PPI especially as I was told ' I was a single parent and should put looking after my son as a top priority'.
My contract states the loan and then the ppi which equals the sum of money it pay per month. ppi is just above 20.00 per month.

After a year (and watching the watchdog programme on this) I decided I shouldn't have allowed myself to feel bullied into taking ppi out and wanted to cancel it. I made an appointment with the bank but was shocked to be told that if I cancelled my ppi then the loan would need to be recalculated and as interest rates have rose then I would be paying more for the recalculted loan without ppi as oppose to the current 'great deal ' that i recieved the previous year.
Although I feel i was pressurred through emotional reasons into the loan by being made to feel a bad mother - I was told about it, the amount it would be and It was never said I had to have it.

My question is more through cancelling the ppi can the banks charge you a higher interest rate and make you pay more? or was a stupidly fobbed off again?

di3004

emlee-123 wrote: »

hi,

i'm new to this and not sure if I've replied to a message or posted my own question but here goes and hopefully someone will answer.

I took a loan out in 2006 - £4000 over 4 years. At the time I was asked to fill a questionnaire in and was told the answers pointed out that It would be strongly recommended to take out PPI especially as I was told ' I was a single parent and should put looking after my son as a top priority'.
My contract states the loan and then the ppi which equals the sum of money it pay per month. ppi is just above 20.00 per month.

After a year (and watching the watchdog programme on this) I decided I shouldn't have allowed myself to feel bullied into taking ppi out and wanted to cancel it. I made an appointment with the bank but was shocked to be told that if I cancelled my ppi then the loan would need to be recalculated and as interest rates have rose then I would be paying more for the recalculted loan without ppi as oppose to the current 'great deal ' that i recieved the previous year.
Although I feel i was pressurred through emotional reasons into the loan by being made to feel a bad mother - I was told about it, the amount it would be and It was never said I had to have it.

My question is more through cancelling the ppi can the banks charge you a higher interest rate and make you pay more? or was a stupidly fobbed off again?

Hi there and welcome
Oh dear they have not done the right thing.......:rolleyes: , who did you take out this loan with?

How long was the term over?

Unfortunately they do add interest on the whole loan/ppi when settling, and yes it seems so wrong.

I would definately get a letter in to complain and reclaim on this.

Check this out here hun
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

On that above link you will see some useful info about the ppi mis selling, and a reclaim template letter to help you, use your own words if you can and add as much as possible about how you were mis sold etc.

They have 8 weeks, post by recorded delivery.
let us know the outcome hun and we will guide you in the next direction from there, with a bit of luck you will be successful first time round.;)

You certainly have a good case here.

Good luck!
Di

emlee-123

hi thanks for getting back so quickly. I did read the stuff on the link before but there is nothing about whether they can legally recalculate my loan on higher interest rates as oppose to just deducting the £20.00 per month.
I don't want to make a claim only to end up worse off by having to pay more per month than what I am paying. My current payment including PPI is £120.00. A year ago they said if I cancelled my PPI then my payments would go up to £145.00 just for the loan, and interest rates have gone up since then. term of the loan is 4 years.

di3004

emlee-123 wrote: »

hi thanks for getting back so quickly. I did read the stuff on the link before but there is nothing about whether they can legally recalculate my loan on higher interest rates as oppose to just deducting the £20.00 per month.
I don't want to make a claim only to end up worse off by having to pay more per month than what I am paying. My current payment including PPI is £120.00. A year ago they said if I cancelled my PPI then my payments would go up to £145.00 just for the loan, and interest rates have gone up since then. term of the loan is 4 years.

Yes I know what you mean.;)
Marshallka will be able to tell you more on the interest issue when she is back here if not later then tomorrow, and its shocking isn't it ?;)

Di.
x

emlee-123

I know. Its the only debt I've ever had and wished I'd just saved for the car but at the time everyone said it was good to get some credit history built up, especially as I would be wanting to apply for a mortgage a year down the line and they sting you just as bad when you don't have a credit rating and at the so either way you can't win. Wish we could just have our wages paid in cash and then I wouldn't have to ever use a bank. thank you for your help.

di3004

emlee-123 wrote: »

I know. Its the only debt I've ever had and wished I'd just saved for the car but at the time everyone said it was good to get some credit history built up, especially as I would be wanting to apply for a mortgage a year down the line and they sting you just as bad when you don't have a credit rating and at the so either way you can't win. Wish we could just have our wages paid in cash and then I wouldn't have to ever use a bank. thank you for your help.

Oh yes these finance companies sting us alright and its so easy for it to happen, but at least your dealing with it - good on you.:beer:

I wish you all the best hun, hope this is resolved very soon.
Fingers crossed.;)

di3004

Marshallka, still reading on the info you posted bit by bit.

What do you think of it then?

owlet

Hi all,

Just a quick update on progress, I sent a template letter to NR (as you said Di) claiming due to being told that I could not have the loan unless I took out the PPI and not being told of options.

I have received back a standard "sorry you are unhappy" letter along with a copy of their complaints policy and a questionaire to complete and send back to their complaints dept. Can I ask a couple of quick questions?

Should I send a copy of my original letter again with this?
Should I send SAR even though I have the original paperwork?
Am I right in understanding that as they added the full premium of the PPI to the loan, with interest, that I can also claim on these grounds?

Thanks everso much in advance! Keep slogging away everyone, we will win in the end!