reclaim ppi

blessing5

My husby and i, took out a loan with halifax, we were missold ppi as we do not even have a clue of what it covers and what it doesn't cover, and also we were not informed that it was optional.

we recently asked for copies of our loan agreement and from that, we could see that the salesperson had put an "X" on where we have to sign which was to say we accept taking ppi out. If we had known that it was optional we would have had second thoughts about it.

anyway we have written to them to reclaim the premium that we have paid and the 8% etc.

my question is - the loan is still running (still payin towards it), when halifax has refunded us the ppi, what difference will this make on the loan balance - do they subtract the ppi which was on it or does the outstanding balance stays the same.

di3004

blessing5 wrote: »

My husby and i, took out a loan with halifax, we were missold ppi as we do not even have a clue of what it covers and what it doesn't cover, and also we were not informed that it was optional.

we recently asked for copies of our loan agreement and from that, we could see that the salesperson had put an "X" on where we have to sign which was to say we accept taking ppi out. If we had known that it was optional we would have had second thoughts about it.

anyway we have written to them to reclaim the premium that we have paid and the 8% etc.

my question is - the loan is still running (still payin towards it), when halifax has refunded us the ppi, what difference will this make on the loan balance - do they subtract the ppi which was on it or does the outstanding balance stays the same.

Hi there

Good luck with this and if the loan is still running, and if successful, they should refund all you paid in ppi, put you back in the position as if ppi was not taken out in the first place.
If you have arrears - missed payments, they they could use that to reduce the amount.
Keep on at them, don't give in.;)

But either way it should reduce your monthly repayments anyway.;)

blessing5

Thanks for the reply di.

Got another question, the premium that was paid on this loan was £1216 and had a further £400 or so on it as interest, the monthly repayment of the total loan is £202. which amount will they be repaying (fingers crossed if they do not give me problems). Is it the premium or is it the difference of what we should have been paying if the ppi was not added on a monthly basis, multiplied by the number of months we have made that payment.

I hope you understand what i am trying to say.

eg without ppi monthly payment should be 200, with ppi monthly payment is 250. do they refund the 50 pounds difference multiplied by the number of months the payment was made, or do they refund the premium.

di3004

blessing5 wrote: »

Thanks for the reply di.

Got another question, the premium that was paid on this loan was £1216 and had a further £400 or so on it as interest, the monthly repayment of the total loan is £202. which amount will they be repaying (fingers crossed if they do not give me problems). Is it the premium or is it the difference of what we should have been paying if the ppi was not added on a monthly basis, multiplied by the number of months we have made that payment.

I hope you understand what i am trying to say.

eg without ppi monthly payment should be 200, with ppi monthly payment is 250. do they refund the 50 pounds difference multiplied by the number of months the payment was made, or do they refund the premium.

Hi hun
Not a problem.

Okay I'm not the one for workings out calculations, but check this link here which may be of some help:
http://forums.moneysavingexpert.com/showthread.html?t=1596473

But for example with my loan it was settled, and they refunded all plus interest.......

For active loan, they repay for what you have already paid, and put you back in the position as if PPI were not taken.

Then your repayments should be reduced, hope this helps.:D;)

melorablack

If Halifax uphold your claims you will get a refund of:
1. PPI premiums paid to date
2. Interest paid on these premiums
3. 8% compensation interest
4. A new loan (with exactly the same term & APR as the old one) minus the rest of the premium not yet paid. (They have to set up a new loan because their systems won't let them just take the rest of the ppi off the old loan.)

blessing5

thanks for the information.

what will be length of time for the new loan and the amount of the loan will it be the same as our current balance.

Not sure what the new loan amount will be and how long it will be for.

amersall

blessing5 wrote: »

thanks for the information.

what will be length of time for the new loan and the amount of the loan will it be the same as our current balance.

Not sure what the new loan amount will be and how long it will be for.

you should pay the remainder of the loan over the original remaining terms, with ppi taken off, they cannot extend the term of the loan and you get it at the same rate of interest as you had originally without the ppi

di3004

blessing5 wrote: »

thanks for the information.

what will be length of time for the new loan and the amount of the loan will it be the same as our current balance.

Not sure what the new loan amount will be and how long it will be for.

Hi there

Hopefully Melorablack will be back later to clarify this for you.;)

di3004

amersall wrote: »

you should pay the remainder of the loan over the original remaining terms, with ppi taken off, they cannot extend the term of the loan and you get it at the same rate of interest as you had originally without the ppi

amersall, thanks for coming along and responding.......:D, I am plugging my bleeding nose a min....:o and have a job to think......:o lol

melorablack

blessing5 wrote: »

thanks for the information.

what will be length of time for the new loan and the amount of the loan will it be the same as our current balance.

Not sure what the new loan amount will be and how long it will be for.

The balance of you new loan will be what it is now with the remainder of the PPI you have not yet paid taken off (so it will be less overall).

The length of time will be as close as possible to what is left to run now, except that Halifax can only rekey loans in blocks of 6 months, so if you had 3 years 4 months left to run the new loan would be either 3 years 6 months (plus 2 months deferred) or 3 years (with 2 months deferred). If the new loan is a shorter term the repayments may be slightly higher but only because the term is shorter.

The APR will be the same as your old loan.