Can i challenge this?Need some advive please.

ReggieBlade

Got a secured loan with 1st ****.

Anyway...split with wife...need to safe some money so,i thought cancel the cash back insurance on the loan (3 years into the 5 year term of ins contract).

Now the ins is 80 QWID a month for 5 yrs to get 11K in 5 yrs.Alas,thats not gonna happen...but,they ve said they will cancel the ins.So i thought id be saving 80 a month.

NO...they said they ll give a rebate on the premiums paid ...which they ve worked out is 540 qwid.And..gonna knock it off the total loan...leaving me a fiver better off....and no insurance!

So,i pay 80 qwid a month over 5 years....they pay me back over 25!

marshallka

DId you not understand how this worked when you took the insurance out? How was this sold to you? Did you use a broker or did FP actually sell it to you?

ReggieBlade

1st sold it to me.

It was seperate on the agreement showing seperate totals as in what i was paying a month.

marshallka

ReggieBlade wrote: »

1st sold it to me.

It was seperate on the agreement showing seperate totals as in what i was paying a month.

But was it not explained that this was in fact a loan to pay the policy and then would incur interest for the full term of your loan. By cancelling your PPI they only rebate the PPI and not the actual interest you are still paying on it. If you did not understand then I would make a complaint for misselling.

You say this was with the wife who is now the ex?? You would however need her approval I would think to go for the misselling if the loan was in joint names.

ReggieBlade

It is a joint one.

What i can t understand is that ive paid 3 yrs at 80 a month with 22 months left out of 60.And,i'm a fiver a month better off over 25 years...not 80 over 22 months.....and,with no insurance!

marshallka

ReggieBlade wrote: »

It is a joint one.

What i can t understand is that ive paid 3 yrs at 80 a month with 22 months left out of 60.And,i'm a fiver a month better off over 25 years...not 80 over 22 months.....and,with no insurance!

I will try and explain in simple terms what you PPI entailed.

They got you to purchase a PPI policy for whatever the amount was on the agreement. This policy was paid for all at once using another loan to pay for it (so then its all paid off in insurance terms and the insurer got their money in a lump sum from FP). You are then left with a loan that paid your PPI lump sum and they then add interest on it for the FULL term of your loan. (ie if your loan was taken out over 20 years, then your PPI loan was also over 20 years too). You then request to cancel the PPI and they give you a rebate against it (or the insurer does) BUT this rebate is only against the actual insurance lump sum you paid and you still owe ALL the interest on it for the next how ever many years are left on the loan.

Your best bet now is to go for misselling as it is obvious that you did not fully understand how these policies worked and it should have been explained to you at the time of the sale.

There is a guide here to reclaiming PPI and there are also "template" letters on it.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

You write to firstplus stating your own reasons why you think it was missold to you and then they have 8 weeks to respond to you in full and final. If they do not uphold this complaint you then have the option of taking this to the Financial Ombudsman Service and just in case this scares you, 99% of cases taken there are being upheld against FP.

Send everything recorded delivery and keep a copy for yourself and also watch out for the 8 weeks deadline.

Good luck