PPI cancelled - Loan amount increased

edited 30 November -1 at 1:00AM in Loans
4 replies 577 views
emsy0304emsy0304 Forumite
2 Posts
edited 30 November -1 at 1:00AM in Loans
Hi

Hope you can help. We have a loan with the Halifax (it is in my partners name but comes out of our joint account) we have managed, after plenty of stalling, to get them to agree to cancel our PPI which was missold - they are investigating.
However they have now sent a form where they have reissued the remaining amount of the loan and added yet more interest onto it, practically setting us back a year. As interest was already included in the outstanding loan amount do we have to accept this? We intend to argue against this but I feel they will say they have to do it this way - computer system etc. Does anyone have an answer we can give them against this?

Replies

  • di3004di3004 Forumite
    42.6K Posts
    emsy0304 wrote: »
    Hi

    Hope you can help. We have a loan with the Halifax (it is in my partners name but comes out of our joint account) we have managed, after plenty of stalling, to get them to agree to cancel our PPI which was missold - they are investigating.
    However they have now sent a form where they have reissued the remaining amount of the loan and added yet more interest onto it, practically setting us back a year. As interest was already included in the outstanding loan amount do we have to accept this? We intend to argue against this but I feel they will say they have to do it this way - computer system etc. Does anyone have an answer we can give them against this?


    Hiya hun
    Write to them to complain, tell them your not happy with this and ask them to look into resolving this with a written calculations on how the heck this came to this.
    Tell them if this is not resolved you will take your complaint to the financial ombudsman service in order for them to investigate.

    You could do this first:

    1 Write to them to explain the above, and give them 14 days to respond on this.

    2. Also request for a calculation breakdown (in the same letter).

    When your letter arrives and they still not resolved this then tell them your not happy and they have 8 weeks to resolve this, if they have not, you will then move on to the Financial Ombudsman Service (FOS) for them to investigate this.

    Post by recorded delivery for your proof.

    Have you already put in a letter to reclaim the PPI?

    This could be 2 separate complaints here hun.

    If you have not put a letter in yet to reclaim and require further help here let us know, cheers and please keep us posted.;)

    Good luck
    Di
    The one and only "Dizzy Di" :D
  • marshallkamarshallka Forumite
    14.6K Posts
    emsy0304 wrote: »
    Hi

    Hope you can help. We have a loan with the Halifax (it is in my partners name but comes out of our joint account) we have managed, after plenty of stalling, to get them to agree to cancel our PPI which was missold - they are investigating.
    However they have now sent a form where they have reissued the remaining amount of the loan and added yet more interest onto it, practically setting us back a year. As interest was already included in the outstanding loan amount do we have to accept this? We intend to argue against this but I feel they will say they have to do it this way - computer system etc. Does anyone have an answer we can give them against this?
    Have a read through this here

    http://www.competition-commission.org.uk/inquiries/ref2007/ppi/pdf/prov_find_app_5_2.pdf
    We note that not all providers require customers to sign a new loan agreement, and when this is the case it is an administrative procedure that does not affect the existing APR on the loan.


    By cancelling the PPI it should not increase your APR and this is not treating you fairly. Perhaps you could do a letter incorprating bits from the above link.
  • This is always the problem with dealing with this stuff yourself I am afraid. The inability of the individual to have any teeth is the one thing that has alllowed the lenders to get away with murder for years.

    The only time they sit back and listen is if you have the ability to litigate regarding the matter in question. Then you have their undivided attention, especially if you are raising a contentious issue that the lenders do not want in the public domain.

    The trick is to find the means to do this cost effectively.
    I am a former Broker, former IFA and former compliance officer, for my sins.

    However, I have since seen the light.
  • Thanks guys,
    Had a feeling they were taking the mickey but not being completely savvy in the world of finance i'm never sure what they can or can't do. Am learning fast though.
    We're giving them a call today but suspect I will be drafting a letter this evening, the banks have had it their own way too long!
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