PPI Reclaiming Discussion part 4

Cymro1

Hi all,

I took a loan out with northern Rock in Jan 2007 for £25,000. PPI on that was £11,941 (didn't realize it was so much). Anyway I was paying £99 a month for the PPI. So recently I was looking through my finances and I thought I really have no use for the PPI on the loan. I get sick pay in work and my mortgage is covered so there is no need for it. I phoned Northern Rock to cancel my PPI as I could do with the extra £99 a month, after speaking to the guy on the phone he said that I would only be saving about £30 a month. When I asked him why that was he replied to say that the PPI is 'front loaded'.I couldn't believe it , I looked back through the paperwork and there is no mention whatsoever of front loading. I am at a loss how they can do this. I have asked for a breakdown of payments and I have paid around £4000 of PPI without the interest from Jan 07 to Oct 09 when i cancelled. So I have paid all that money for nothing at all.
Is this front loading issue common? and is this a case of miselling do you think?
thanks in advance for any replies

di3004

Cymro1 wrote: »

Hi all,

I took a loan out with northern Rock in Jan 2007 for £25,000. PPI on that was £11,941 (didn't realize it was so much). Anyway I was paying £99 a month for the PPI. So recently I was looking through my finances and I thought I really have no use for the PPI on the loan. I get sick pay in work and my mortgage is covered so there is no need for it. I phoned Northern Rock to cancel my PPI as I could do with the extra £99 a month, after speaking to the guy on the phone he said that I would only be saving about £30 a month. When I asked him why that was he replied to say that the PPI is 'front loaded'.I couldn't believe it , I looked back through the paperwork and there is no mention whatsoever of front loading. I am at a loss how they can do this. I have asked for a breakdown of payments and I have paid around £4000 of PPI without the interest from Jan 07 to Oct 09 when i cancelled. So I have paid all that money for nothing at all.
Is this front loading issue common? and is this a case of miselling do you think?
thanks in advance for any replies

Hi and welcome.;)

These types of policies are a right rip off and costly compared to stand alone protection.

With these actual policies they add the PPI within the loan, say for instance your loan was for over 20 or 25 years, well these policies only last out for 5 of those years and you will be paying for the PPI for the life of the loan.

These policies are also frowned upon.
However, I would read more on the link below, which includes useful info of these policies, and a checklist of mis selling reasons, and template letters, if you think you have a case (in my opinion being sold one of these policies then you fo have a case - but also check for other reasons as well which may apply to you).
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

If you go for this then you write to the ones who sold you the loans and they have 8 weeks in full to respond.

Ask for help anytime and please keep us posted, good luck.;)

Di

twinkledust

I'll take a look at the above link aswell Di as I've had my mortgage with Northern Rock for nearly 9 years now and I have a loan thats run beside my mortgage that was originally for £7000 as it was my first mortgage and I had nothing to start me off. They also took a deposit from that money for my home and it had to run with my mortgage over the 25 years and comes off as my mortage in one payment for both, if you follow what I mean. I'm going to have to look into it more at the moment but I'm having difficulty finding my mortgage papers so I'm in a panic right now! :eek:

However on the bright side today I sent away 5 letters!

di3004

twinkledust wrote: »

I'll take a look at the above link aswell Di as I've had my mortgage with Northern Rock for nearly 9 years now and I have a loan thats run beside my mortgage that was originally for £7000 as it was my first mortgage and I had nothing to start me off. They also took a deposit from that money for my home and it had to run with my mortgage over the 25 years and comes off as my mortage in one payment for both, if you follow what I mean. I'm going to have to look into it more at the moment but I'm having difficulty finding my mortgage papers so I'm in a panic right now! :eek:

However on the bright side today I sent away 5 letters!

You will get through this and well done on the 5 letters you have already sent :T and the best of luck.;)

Dunstonh who posts on here can also help and advice on mortgage insurance matters if you require this.;)

Nathan97_2

Hi all. Received a letter today from the FOS stating that they have told LTSB to stump up the PPI they mis sold me having upheld my case, and that this letter completes the FOS formal involvement with this case. I have sent the signed agreement to the FOS which says that I agree to the method that LTSB has to calculate the amount thay owe me which is set out by the FOS. The FOS say that the bank has to pay all the PPI on the 3 loans that I had with the bank plus the difference that would have been if the loan did not have PPI, plus 8% for every year that the loans were running.(Good times). Does anybody know the amount of time that the bank will take to deal with this matter, and what will the next step be. Will they send me a cheque for the amount that they think is correct plus the calculations, or will they just send me an offer of what they think the correct amount is for me to agree or disagree with.

any comments greatfully received

Nathan97

di3004

Nathan97 wrote: »

Hi all. Received a letter today from the FOS stating that they have told LTSB to stump up the PPI they mis sold me having upheld my case, and that this letter completes the FOS formal involvement with this case. I have sent the signed agreement to the FOS which says that I agree to the method that LTSB has to calculate the amount thay owe me which is set out by the FOS. The FOS say that the bank has to pay all the PPI on the 3 loans that I had with the bank plus the difference that would have been if the loan did not have PPI, plus 8% for every year that the loans were running.(Good times). Does anybody know the amount of time that the bank will take to deal with this matter, and what will the next step be. Will they send me a cheque for the amount that they think is correct plus the calculations, or will they just send me an offer of what they think the correct amount is for me to agree or disagree with.

any comments greatfully received

Nathan97

Hi Nathan
That is fab news, Congratulations.

It looks like the FOS want all this repaid directly to you by cheque payment, and this should include all the PPI you have paid, interest and 8% interest of what a court would award for being deprived of your money.

The next letter you should receive from the FOS now that you signed the acceptance form will be the one to say they have now closed the files (however they are prepared to chase them up for you if you do not receive your money within a reasonable time).

Lloyds TSB still not refunded my hubby's Credit Card PPI, but a letter dated from the FOS 4 DEC 2009 stated that if my hubby did not hear from Lloyds by 4 weeks of that actual dated letter is to contact Lloyds, we have done this several times, because hubby had not heard anything, he then contacted the ombudsman that was dealing with his case, who confirmed to my hubby that they been in touch with Lloyds are it was confirmed by Lloyds they are onto dealing with the matter now, so it should be anytime now.

If my hubby do not hear anything by mid week next week he is to chase this up again.

Hope you won't have to wait too long, but the letter you will receive from the FOS next should give you some details of when to expect to hear from Lloyds, good luck and again well done.:beer:

disco_dave_2

Update: I have received an acknowledgement from MBNA thanking me for giving them an opportunity to investigate the matter. They say they will give a full response within 28 days.

I wrote to them asking for a refund of PPI because as a Director of a Limited Company, the conditions of claiming made in practically impossible.

Will keep you posted...

di3004

disco_dave wrote: »

Update: I have received an acknowledgement from MBNA thanking me for giving them an opportunity to investigate the matter. They say they will give a full response within 28 days.

I wrote to them asking for a refund of PPI because as a Director of a Limited Company, the conditions of claiming made in practically impossible.

Will keep you posted...

Good one Dave, and Fingers crossed.;)

hopefulshell07

Hi All sorry this is quite a lengthy post,

I have a couple of letters from LTSB about the various loans that I took out with them:

Feb 2002 Loan Amount £5000.00 PPI Amount £1174.84 refinanced in:
Oct 2003 Loan Amount £15000.00 'one off loan amount' not PPI apparently £3318.20 plus interest refinanced in:
Oct 2004 Loan Amount £16000.00 PPI Amount £4064.27 refinanced in:
Aug 2008 Loan Amount £19000.00 PPi Amount £5173.64 currently still running.

As I had settled early by refinancing I got a rebate so, for the 2002 & 2004 loans they are offering:
They will calculate the difference between the settlement balance on the loans(s) and what the settleement would have been without the PPI.
Then:
And calculate an 8% interest payment from this sum from the day the loan was settled to the day the calculation is made.
Then:
They will then calculate the amount I have paid up to the date of cancellation and refund this.
Then:
They will add on simple interest of 8% per annum to each monthly payment from the date I paid each payment to the dateI settled the loan.
Then:
A further 8% simple interest will be calculated on this whole sum from the date of settlement to to the present date.
Then:
As I received partial rebates when I settled the loans these amounts will be taken off of the total refund amount.
Whew thats for two of the loans!!

If this seems like a good idea I will accept this for these two loans but have to post about the other two yet
:eek:

hopefulshell07

For my loan taken out in Aug 2008 they have agreed the following:

That I was mis sold the PPI and they will refund all PPI payments I have paid up to date and add simple interest on of 8% and they will amend my current loan to reflect what the payments would have been had I not taken out the PPI.
This is the same remedy address that the FOS would make if I went to them according to the bank.

This is quite an easy one to work out but is the 8% correct seeing as my loans were at 14.9% twice and 11.9% and the latest one is 8.9% - does this make any difference?