LV - refunded insurance but deducted from my loan amount

VespaPX125

I recieved a letter in Feb 2007

"Personal Loan Agreement *******

Further to your recent letter regarding your Payment Protection Insurance I can confirm that the insurance has been cancelled with effect from today's date

A refund of the insurance premiums in the sum of £2,881.17 has been credited back to your LV= loan account together with a refund of the insurance charges in the sum of £1,179.77, your outstanding balance has been reduced to..... blah blah blah"

This PPI had nothing directly to do with the loan, I paid the premium ON TOP of my loan agreement, I wanted the money back, not deducted from my loan, I'm going bankrupt in a couple of weeks and that could have paid for my hearing (and a cheap motor)... can they do that? Can they instantly deduct it from your loan even though the repayments for the loan was calculated and agreed and the PPI was calculated seperately?

Any advice gratefully recieved

Gaz W

di3004

VespaPX125 wrote: »

I recieved a letter in Feb 2007

"Personal Loan Agreement *******

Further to your recent letter regarding your Payment Protection Insurance I can confirm that the insurance has been cancelled with effect from today's date

A refund of the insurance premiums in the sum of £2,881.17 has been credited back to your LV= loan account together with a refund of the insurance charges in the sum of £1,179.77, your outstanding balance has been reduced to..... blah blah blah"

This PPI had nothing directly to do with the loan, I paid the premium ON TOP of my loan agreement, I wanted the money back, not deducted from my loan, I'm going bankrupt in a couple of weeks and that could have paid for my hearing (and a cheap motor)... can they do that? Can they instantly deduct it from your loan even though the repayments for the loan was calculated and agreed and the PPI was calculated seperately?

Any advice gratefully recieved

Gaz W

Hiya Gaz

I was successful in reclaiming the PPI from LV last year, received the amount back but the loan was settled.

However if you had no actual arrears on this loan I would have thought it would be paid directly to you.

I would wait for other views on this as well hun, but in my opinion if no no arrears such as missed payments on this loan then surely it should have been your choice here.

If this is the case hun write to them and tell them.

Good luck.;)

VespaPX125

I'm not their bestest mate at the mo', wasn't in arrears at time, am now and just wrote to tell them to shove their loan as bankruptcy in 5 weeks - doubt I'll get it now,,,, :mad:

di3004

VespaPX125 wrote: »

I'm not their bestest mate at the mo', wasn't in arrears at time, am now and just wrote to tell them to shove their loan as bankruptcy in 5 weeks - doubt I'll get it now,,,, :mad:

Hi hun

I hope someone else posts to give their opinions on this as well and hope it all works out your way, these companies have to be fair to you where they should treat you fairly hun, so good luck here.;)

Di
X

~Brock~

di3004 wrote: »

Hi hun

I hope someone else posts to give their opinions on this as well and hope it all works out your way, these companies have to be fair to you where they should treat you fairly hun, so good luck here.;)

Di
X

Well you did ask for someone else's opinions......................

The OP is just about to default on this loan and walk away owing nothing. Has also just written a snotty letter effectively sticking two fingers up at them and telling them to go swing for their money. And they are supposed to treat the OP fairly!!??

They will quite rightly use this refund to mitigate their losses, and I would suspect most decent honest people would completely agree with them in this situation.

di3004

~Brock~ wrote: »

Well you did ask for someone else's opinions......................

The OP is just about to default on this loan and walk away owing nothing. Has also just written a snotty letter effectively sticking two fingers up at them and telling them to go swing for their money. And they are supposed to treat the OP fairly!!??

They will quite rightly use this refund to mitigate their losses, and I would suspect most decent honest people would completely agree with them in this situation.

Hiya Brock

Thanks for your opinion, this is why I said that I hope someone else would post to give their views on this.;)

I do not know the FULL issues of OP, and like I said if there are arrears on the policy its likely this will be used to reduce the loan, if missed payments, which is "fair enough" I understand that's how it works, not that I have been in that situation myself.

However, if I was in that situation I would be happy to have this reduced off the loan.;)
Which I think is fair to the customer. In regards of bankruptcy, I am lucky to have not been in that situation, but if anyone with this experience could give their views on this to show the OP how this works out.

Cheers