PPI Reclaiming discussion Part III

doingmybest_3

Anne42 wrote: »

Hello everyone

I am new to this Forum and if there are already the answer to my questions on here in one form or another I do apologize, but I hope someone can help me.

In June 2007 I took out a loan with Lloyds TSB and the PPI offered. This loan paid off what was owed on an existing one and a little more for an up coming wedding. I borrowed 5602.41 over 60 month at a rate of 13.3%. this totals 7579.20. The PPI (also charged at 13.3% interest) brings the total amount owed to 9645.60.

The person I dealt with did not say that I have to take out the PPI in order to get the loan. She did say that it is better and safer. In case of illness or death I do not have to worry about how the loan is paid off.

I have got very generous sickness and death benefits with my employer so in case of my demise my now husband ( at the point I took out the loan we were only engaged) would not have to worry about finding the extra money to pay my loan of anyway. So I really don't think I need this PPI. When I realized this I have tried to cancel the policy but I was informed I cannot do this. I would have to take out a new loan.

I was very shocked to learn that I have the option of seeking out a different PPI provider. At no point did she point out that cover is available elsewhere. The way it was sold it was just their PPI or no PPI. Obviously not in those clear words. It was simply never hinted at or mentioned. Interest included brings the total coat of the PPI over 60 month to 2066.40. Quite steep on an original borrowing of 5602.41.

My questions/ worries are:

1) Do I have a case of mis-sold PPI or is it simply my fault for not asking the right questions at the meeting and then not reading through the agreement thoroughly and cancelling the PPI within the 30 days?

and the most important one

2) If I go ahead with my claim and it gets refused, can the bank inisist on me settling the outstanding balance in full, because with my complaint I said that I do not require the PPI. Can they insist I take out a new loan to pay off the old one and then I end up paying even more because of a higher interest rate. Or even worse insist I pay all now and refuse a new agreement?

Please help!
Many thanks in advance from a very nervous new Forum user.

Hi Anne
I'm not an expert by any means but as far as I understand it from my dealings with FOS, the bank have to make sure that you are fully aware of the restrictive cancellation conditions of the policy and the policy has to be adequately explained to you at the point of sale. I only know this from what the FOS told me after listening to the call tapes. I think that you do have a case of mis-selling as the onus appears to be on them to ensure that they adequately explain the policy and that you are sufficiently aware of the costs and implications of the policy to make an informed choice when taking out the policy. Also because of your work benefits you would never have to use the policy so it's a waste of your hard earned cash. Hope this helps for now, there are loads of knowledgeable people on here who will help you further and in more detail.

dreamer33

Incipience wrote: »

Have you considered, those who have been rejected by the FOS for the same lender, taken legal action or even a class action against them.

Hello there incipience.

How are you today.

Calculator

dreamer33 wrote: »

Yes they will, you will be put back in a position as if you never had the ppi, your payments made will be taken into account.

AND additionally, the portion of the PPI Loan still outstanding (which would have increased as it is constantly attracting interest) must also be "written off" resulting in only the original Advances Loan (original basic loan) being in place. This would also result in a reduced monthly premium-and of course a better settlement figure.

Incipience

Hey dreamer.. just peachy thanks.. hope you are all well

sharibe

Hello everyone,

I still haven't heard a dicky bird back from Lloyds on my claim. I sent a second letter to them the week before xmas. Is this normal for them to take so long to reply? Or is no news, good news??? Also, should I ring up and ask about my claim, or is that not really the thing to do? Should I just be more patient?

Any help,as always, most gratefully received:-))

Love
Sharibe
xx

marshallka

dreamer33 wrote: »

Well done pleased for you, justice again:T

What payments do you mean off the loan? If you mean the refund off the loan then you should be given a choice as to cheque in your hand or refund off your loan.

Only for the payments actually made though according to what I posted earlier. Any refund of payments and interest that is due to be paid is and can be taken off the balance of the loan;)

marshallka

alfieg40 wrote: »

Yes, i have received the copy today. I have just read over it fully and low and behold the very last paragraph states

'we will pay the premium for your Loan Payment Protection cover specified in the agreement to the insurer on your behalf. The terms and conditions governing this insurance are explained in the agreement and the Egg Personal Loan Payment Protection Policy document supplied to you. By signing this agreement you confirm that you have understood the terms and conditions of the Egg Personal Loan Payment Protection Policy document'

So by signing i have confirm that i understand the T's & C's, but that does not mean that i wanted it, right?

Mine says that on the back of the FIrstplus agreement I have but on the actual application form there are boxes to tick for asking for the PPI and agreeing to it etc. These are left blank and not ticked or crossed. Just cause it says it there is nothing. They could have added this still without your consent or wanting it.

marshallka

doingmybest wrote: »

Thank you. What I meant was will they take into account what I've already paid so it makes a dent in the revised settlement figure.

What you have already paid to them is repaid to you and statutory interest if you have requested this.

As regards the settlement and loan redone this is done taking into account what you still owe against the PPI and interest but have not yet paid over and then taken from the balance and the loan redone over the same terms and APR.

marshallka

pinknico wrote: »

Single premium policy

If you have a single premium policy, such as those often attached to personal loans or finance agreements, then the compensation you receive will depend on whether your loan is still in force or not.
If your loan is still in force - your lender should calculate what your loan repayments would have been had PPI not been added to the loan, and how much should have been repaid so far. Any overpayments you have made will therefore be applied to your outstanding loan – reducing the amount of capital you owe.
If your loan or finance agreement is no longer in force - you should still get back any PPI payments you made, plus the difference between the redemption figure you paid and what it would have been had you never taken out the PPI policy.
Statutory compensation for mis-sold PPI

This is Marshallkas post( or part of it) I mean Credit Crunch

Taken from which statement though, not mine made up

marshallka

maxdp wrote: »

Hi

I know they look and have warned about this too. When I posted figures up here plus some comments about certain things e.g. FOS etc I have been completely ignored and they have sided with the lender. Will not discuss at all with me now Anyway have had enough so am going to take them down the other route. They had their chance but think they are clever. Well we will see.

And good luck with this one Maxdp..;)