Steaming Mad - Can They Do This?

moggins

I've just been on the phone to Black Horse Finance about the cancellation of my PPI, that's fine she said, you just have to write to these people. Then she added that it wouldn't decrease my payments by much as they will have already taken most of the PPI already.

On the agreement they sent us it says that we will pay 120 instalments at £7.82 per month, so surely they are not allowed to take it at a higher monthly rate than that?

This is the letter I have composed to them, can anyone tell me if it looks okay or if there are any alterations I should make?

Dear Sirs

Re: Loan No:

I took out the above loan in April 2004. I phoned on the 3rd May 2006 to cancel the Payment Protection Insurance as we do not need it and in fact have never needed it. I was kindly told this was possible but had to write to yourselves.

However towards the end of the conversation I was told that this would not decrease our payments by much as in fact all monies paid so far would have been paid towards the PPI. Going back over the initial agreement we signed I beg to ask how this can be possible as in the financial details section of the PPI it specifically states that PPI will be paid at the rate of £7.82 over a period of 120 months. As far as I am aware it has only been 24 months since we took out this loan. If you have indeed been taking all of our monthly payment to pay off the PPI first then this is going against your own legal agreement.

In view of the way this has been mishandled I am hereby requesting repayment of all the monies paid towards the PPI so far and immediate cancellation of the Payment Protection Insurance.

Yours faithfully

Rafter

They will probably argue that the £7.82 was illustrative and that the detailed refund terms from cancelling PPI are in the policy terms and conditions.

The basic arguement is that because the loan outstanding is higher at the beginning the insurance is higher too.

2 years in to a 10 year loan, about 36% of the insurance premium will have been taken.

Your best bet is probably to claim that the insurance was missold in the first place and that all the insurance would be refunded. If you are self employed or had any pre-existing medical conditions this may well improve your case.

Good luck.

R.

fusar

Hi Moggins,

Did you have any luck with your letter? As I am going through exactly the same problem at the moment and feel that it is such a scam! Any advice would be wonderful

Many thanks
Sarah