MY PPI (£2000) REFUNDED PLUS 4 years INTEREST!

ali1978

GOOD NEWS!!! JUST ONE PHONE CALL HAS SAVED ME THOUSANDS OF POUNDS!!! I just complained to Lloyds about my £2000 worth of PPI after 4 years of having my loan on the basis that they mis-sold it to me. I had not in fact realised I had this insurance at all until last week!! Lloyds have agreed to refund it in full plus the interest I have paid as a "gesture of goodwill". The crux was that I made a compalaint on the basis that the £2000 insurance policy (on an £8000 loan), had been mis-sold to me ie: They were in the wrong selling it to me at all. This is because I had not understood the terms. Which is technically their fault as the FSA states that they are responsible for explaining the terms and the cover properly including any circumstances that migh exclude you from being able to claim. It has taken me 4 years to be sussed enough to actually read the statement properly. (Embarassingly!) I realise that this was remiss of me but most people probably don't look at loan statement very often. THAT IS HOW WE GET TAKEN FOR A RIDE BY BANKS! When I took the loan out as a graduate I was naive and had no financial knowledge. It was implied by Lloyds that I was making the £2000 payment as a necessary admin charge. The impression was given that I could not take the loan out otherwise. It was never properly explained to me what it was! I was self employed at the time. Since that time I have been unemployed once but I would not have been covered anyway. Lloyds should not have sold me an unsuitable product. I felt that I was mislead and complained (admittedly very late in the day) but the result has been perfect. My advice: If you have PPI with Lloyds and you don't/ never wanted it COMPLAIN!!! Insist that it was mis sold to you. It probably was!
Good luck

CheeseOnToast

Fantastic!

Well done!
I paid around 1500 PPI on my loan, I tried arguing it was mis-sold the other day but they weren't having any of it.

Me being me as well didn't have the documentation in front of me, I'm digging it out tomorrow to make sure I was covered etc in all ways to give it another go.

Another thing, I wasn't offered the loan terms without the PPI - they told me the terms and monthly cost etc - does this quantify as forcing it upon me? In my mind it does as I wasn't offered an alternative?

I am with HSBC by the way.

If I can get my PPI refunded I could reduce my loan term outstanding from 17 months to around 8! If not less!!

ali1978

Just keep hammering away at them! Ask to speak to someone in complaints.
Here are some facts I have found:
No one is legally obliged to add payment protection insurance. And if you want it, it can be much cheaper to shop around on the internet or go to a local insurance broker - perhaps a third or half of the price of buying from a bank. However, banks claim their own cover is more extensive.
The UK PPI Market is worth over £5 billion a year in income from premiums.
There are currently around 20 million 'live' policies.
Between 6.5 and 7.5 million new policies are taken out annually.
Each year over 450,000 consumers make claims on PPI policies – according to Citizens Advice Bureau research, 85% of claims are unsuccessful, in stark contrast to industry claims that the figure is only 15%.
In the case of loans and hire purchase agreements, PPI premiums can add 20% or more to the amount of credit.
I think you should put your complaint in writing as a second stage of the process, after you have made another phone call.
Just a quick googl e search of PPI + mis-sold will give you an idea of what awful press it has had recenly. Look up the FSA as well. You will find tons of PPI stuff. I was lucky that LLoyds have been especially dragged over the coals because they are really bad. Have a look on the BBC and Guardian websites and search PPI +mis-sold. You will find lots of grim tales. You are with a different bank but maybe they need reminding that they don't want this kind of press too? They are now really trying to make up for it. If the complaint doesn't work through the bank after all this write a letter to the Financial Ombudsman. Send an identical copy of your letter to the complaints department at your bank and see how they react.
Good LUCK!!!!!

Old_iron_balls

CONGRATS !
Great feeling isnt it when things go your way.
Just shows you what a little perseverance can achieve.

CheeseOnToast

Thanks ali, I will really get my teeth into it now as I have just started my 20 day break for xmas, my only big break of the year!!

The amount of debt I'm in (!) at my age (22) I could do with reducing as much as I can!!!!!

Well done again on your fantastic result!

ConsumersRSheep

Hi Guys,
I cancelled PPI on an unsecured 12k Egg Loan last year (about 18 months into the loan at the time). I did not, however, realise that refunds with interest were achievable. Any advice on how to go about getting this back?

Cheers.

CheeseOnToast

By the way, I just found this quote

"Though the report found no evidence to suggest companies were selling PPI as a compulsory insurance, in many cases it was automatically included in the loan quote without customers being told cover was optional."

Also "Also, providers often failed to make it clear when insurance was added to the loan in a lump sum, rather than being paid for monthly."

The source of this quote was http://www.thisismoney.co.uk/insurance/article.html?in_article_id=405016&in_page_id=4

It's a recent article as well from November.

These two points are extremely valid to me, I am writing my letter in the morning and posting it immediately. Fingers crossed!

Old_iron_balls

CheeseOnToast wrote:

These two points are extremely valid to me, I am writing my letter in the morning and posting it immediately. Fingers crossed!

good luck, dont forget - recorded delivery