Can you reclaim PPI on car finance???

bmwphillie

In December 2007 I took out car finance with Welcome Financial Services and at the time was told that the PPI was compulsory which added about £3k onto the loan value. As I was stuck for transport I had to take it. Unfortunately I have just been made redundant and have got to hand the car back to the finance company and although I only owe £ 26.00 on the car itself they are trying to get me to still pay £ 1600.00 in insurances!! is this right and can anyone help? Thanks

marshallka

Yes you can and as this was sold to you in 2007 then you should be able to use the Ombudsman Service if they do not play ball. You have to make the complaint against the person that actually sold the insurance according to what we are told.

Why are you not making a claim on the insurance if it covered redundancy though???? Surely that is what most of these insurances cover. I am confused here. If you can claim then perhaps its best to do this.



Just take a look at the link here and see what you can add and delete from the template letter. Its always best to do your own from this. There are lots of reason on there for the misselling so pick out the ones that are applicable to yours.

You then write to the firm that actually made the sale of the PPI to you if this is different from the lender and don't forget to send this recorded delivery so you always a proof and dates etc.

After that you have to give them 8 weeks for a full and final response. In this time it is usual to get a response of "sorry we sold this to you fairly" but you then respond to this and reiterate your complaint again. The next time they write they either give you a final response which you would need in order to take this complaint to the FOS or offer to settle.

http://www.moneysavingexpert.com/rec...urance#reclaim


Good luck

bmwphillie

Thanks for the info. I am not claiming on the PPi as the car we got was seriously overpriced in the first place. I could hand the car back after 2 years and I saw the opportunity to save myself the money in the long run. As an Idea we have been able to buy 2 older cars for the same as 3 monthly payments!! Now if I am able to claim back the PPI it will benefit me even further.
Thanks
Phill

marshallka

bmwphillie wrote: »

Thanks for the info. I am not claiming on the PPi as the car we got was seriously overpriced in the first place. I could hand the car back after 2 years and I saw the opportunity to save myself the money in the long run. As an Idea we have been able to buy 2 older cars for the same as 3 monthly payments!! Now if I am able to claim back the PPI it will benefit me even further.
Thanks
Phill

Hi Phil, so you are saying that you were told it was compulsory to the loan and you did not want it anyway. Is that your reason for the reclaim?

Good luck

bmwphillie

Yeah, the salesman didn't even offer it as an option. He basically advised that it would be required for me to get the loan.

di3004

bmwphillie wrote: »

Yeah, the salesman didn't even offer it as an option. He basically advised that it would be required for me to get the loan.

Good luck with this then, you have a case here.;)

LeicesterLass

This is a rather late follow-on from bmwphillie below but I have exactly the same problem except my car was bought from Arriva Vauxhall, Leicester in 2000. I wasn't given the option of payment protection, it was just added on to the price. I then wanted to pay off the loan after a few months but got a big shock when the final figure was thousands more than the loan amount outstanding. I have been trying for about three years now to get the money back but because it was such an old policy it seems I don't have a leg to stand on. I have been to the Ombudsman but with no luck.

dunstonh

This is a rather late follow-on from bmwphillie below but I have exactly the same problem except my car was bought from Arriva Vauxhall, Leicester in 2000.

So, it was five years prior to regulation (Jan 2005).

I then wanted to pay off the loan after a few months but got a big shock when the final figure was thousands more than the loan amount outstanding.

So, you would have got most of the PPI premium back in the settlement figure.

I have been trying for about three years now to get the money back but because it was such an old policy it seems I don't have a leg to stand on. I have been to the Ombudsman but with no luck.

It is pre-regulation. The dealer was not required to be regulated in 2000. So, they broke no regulations.