PPI Clarification

rmd_2

Hi all,

I need some clarification before I decide whether to proceed with a ppi reclaim or not. The background is that I have a loan for £11800 with a ppi at £3853.42 with Lloyds TSB. I have not defaulted on the loan at all.

Questions:

I have received a copy of the original agreement this morning, and it shows the 'Optional loan protection' tick box marked 'yes' by the bank before I have signed it. Does this represent mis-selling because they have ticked the box rather than me?

Can I cancel the ppi but keep the original loan?

Is it worth bothering with if I have to have a new loan at a higher rate of interest?

Many thanks

petermb_2

rmd wrote: »

Hi all,

I need some clarification before I decide whether to proceed with a ppi reclaim or not. The background is that I have a loan for £11800 with a ppi at £3853.42 with Lloyds TSB. I have not defaulted on the loan at all.

Questions:

I have received a copy of the original agreement this morning, and it shows the 'Optional loan protection' tick box marked 'yes' by the bank before I have signed it. Does this represent mis-selling because they have ticked the box rather than me?

Can I cancel the ppi but keep the original loan?

Is it worth bothering with if I have to have a new loan at a higher rate of interest?

Many thanks

If you cancel the loan the norm is to write a new loan agreement with new terms. If you win a claim for mis-selling etc then the lender cannot force you into different terms or interest rate.

chequeout

rmd wrote: »

Hi all,

I need some clarification before I decide whether to proceed with a ppi reclaim or not. The background is that I have a loan for £11800 with a ppi at £3853.42 with Lloyds TSB. I have not defaulted on the loan at all.

Questions:

I have received a copy of the original agreement this morning, and it shows the 'Optional loan protection' tick box marked 'yes' by the bank before I have signed it. Does this represent mis-selling because they have ticked the box rather than me?

Can I cancel the ppi but keep the original loan?

Is it worth bothering with if I have to have a new loan at a higher rate of interest?

Many thanks

Absolutely - go for a reclaim if you are the slightest bit concerned you have been mis-sold. From what you say, you have absolutely and definitely been mis-sold because you either should have ticked the box yourself, or had the policy fully explained to you and verbally asked if you wanted it if they ticked it on your behalf.

And, yes - if you write and explain to them you think you were mis-sold, not only should they cancel the PPI only, you will also be in line for a refund of all PPI payments you have made if they agree to repay / are asked to by the FOS at a later date.

And you shouldn't have to sign a new loan at a higher rate of interest - it is the PPI you are cancelling, which is a separate policy to the actual loan which shouldn't be affected in any way by the PPI cancellation.

Hope this helps - good luck with it all

rmd_2

Sounds good, thanks for your replies. Last question - do I need to cancel the ppi prior to attempting to claim?

Cheers

marshallka

rmd wrote: »

Sounds good, thanks for your replies. Last question - do I need to cancel the ppi prior to attempting to claim?

Cheers

You can cancel although that is up to you. Have not had time to read through the whole of the posts but if it were a loan its often a lot of hassal as a new agreement is needed and you only really see a small reduction usually in the repayments if it were a single premium.

petermb_2

rmd wrote: »

Sounds good, thanks for your replies. Last question - do I need to cancel the ppi prior to attempting to claim?

Cheers

I would not cancel the insurance before you claim. This would give them the opportunity to rewrite the loan at a different rate. By admitting they have mis-sold this forces their hand to leave the loan as it was initially written.