First plus - need help

putty71

SORRY BUT POSTED THIS ELSEWHERE - JUST WORRIED AND NEED ADVICE IN CASE MY CLAIM WILL FAIL

Hi All

I really need soem help with this. Today I received a letter from FP and have repeated the bulk of it here-

Thank you for your recent enquiry regarding cancellation (note I do not believe this to be a response to my request to claim back PPI).
This is a single premium policy with the amount being debited to the loan account and paid to the insurer at the inception of the loan. The premium is incorporated into the balance of the loan and is repaid over the full term.
The insurance runs for a period of 5 years at which time , subject to certain provisions there is the possibility of obtaining a refund of the premium known as a rebate. If at the end of 5 years you are eligible to reclaim the premium.

Cancellation of the policy before its normal expiry date does not entitle the customer to a refund on a pro rata basis. However refunds are paid at the discretion of the insurer and are calculated by them on the balance of the premium left after the deduction of the non refundable elements of the premium. A greater proportion of the premium is allocated to the early part of the 5 year term by the insurers to reflect the higher risk presented at the beginning of the policy than the end and it is for this reason that the rebate paid to you in the event of cancellation is not made on a pro rata basis.

If you wish to cancel the insurance we are prepared to make a refund of £847.59 in respect of the premium paid and this would be credited to your loan account . The current monthly repayment to your loan is £414.46 and the effect of this reduction in the balance would be to reduce your monthly payments to £406.96. These figures are valid for the current month only and would alter when your next payment becomes due on 21/10.

It then goes on to say about both parties signing to cancel.

Help please.

I am totally confused and feel as though I am being stiched up. So far I have paid about 31 installments believing that the the loan was around the £300 mark and the rest was the ppi.

Can anyone answer the follwoing for me and advise what I must do next-

1) Should the monthly installment drop by around a £100 ish?
2)I believe I am entiled to a greater payout - is this correct?
3) Can I request the money be paid to me by cheque?
4)I am just confused- please someone explain in plain english what they are trying to do and if I need to continue my claim?

Right now I could really do with the money so please please help

Thanks

Putty



PS SORRY FOR POSTING TWICE BUT PLSE HELP

di3004

putty71 wrote: »

SORRY BUT POSTED THIS ELSEWHERE - JUST WORRIED AND NEED ADVICE IN CASE MY CLAIM WILL FAIL

Hi All
Hi there.
I really need soem help with this. Today I received a letter from FP and have repeated the bulk of it here-
We shall do our best to help.;)

Thank you for your recent enquiry regarding cancellation (note I do not believe this to be a response to my request to claim back PPI).
This is a single premium policy with the amount being debited to the loan account and paid to the insurer at the inception of the loan. The premium is incorporated into the balance of the loan and is repaid over the full term.
The insurance runs for a period of 5 years at which time , subject to certain provisions there is the possibility of obtaining a refund of the premium known as a rebate. If at the end of 5 years you are eligible to reclaim the premium.

Cancellation of the policy before its normal expiry date does not entitle the customer to a refund on a pro rata basis. However refunds are paid at the discretion of the insurer and are calculated by them on the balance of the premium left after the deduction of the non refundable elements of the premium. A greater proportion of the premium is allocated to the early part of the 5 year term by the insurers to reflect the higher risk presented at the beginning of the policy than the end and it is for this reason that the rebate paid to you in the event of cancellation is not made on a pro rata basis.

If you wish to cancel the insurance we are prepared to make a refund of £847.59 in respect of the premium paid and this would be credited to your loan account . The current monthly repayment to your loan is £414.46 and the effect of this reduction in the balance would be to reduce your monthly payments to £406.96. These figures are valid for the current month only and would alter when your next payment becomes due on 21/10.

It then goes on to say about both parties signing to cancel.

Help please.

I am totally confused and feel as though I am being stiched up. So far I have paid about 31 installments believing that the the loan was around the £300 mark and the rest was the ppi.

Can anyone answer the follwoing for me and advise what I must do next-

1) Should the monthly installment drop by around a £100 ish?
2)I believe I am entiled to a greater payout - is this correct?
3) Can I request the money be paid to me by cheque?
4)I am just confused- please someone explain in plain english what they are trying to do and if I need to continue my claim?

Right now I could really do with the money so please please help

Thanks

Putty



PS SORRY FOR POSTING TWICE BUT PLSE HELP

Do not worry, its always best to be sure, and hopefully others will post up with their opinions on this as well.

1) I am not sure in regards of what the repayments would be on cancellation, as they all vary, yet depending on how they work this out and what it confirms in their own terms and conds, one of mine was only reduced about £14 a month, it was shocking.

2) Whatever you have paid in PPI, you should receive back, plus any interest etc.

3) Yes if no arrears, and they admit liability to mis selling then your entitled to request they refund this directly to you, yet sometimes on goodwill offers where they do not admit liability, some will make the refund towards the loan itself, but worth requesting that they refund directly to you by a cheque payment.
Again, even if there are arrears, (not saying you have them), some pay towards just the arrears and the remaining paid by cheque directly to you.

4) To be honest I am baffled on this as well.

You confirm that you do not believe this is the response from the PPI reclaim letter you sent them.

I take it you asked them to cancel the PPI?

I would contact them asap and ask what is this in aid of and are they actually dealing with your PPI reclaim.
They should be able to confirm this.

Sorry if I have not been much help on this, but make sure on this before going any further, by ringing them.

Good luck with this and please keep us posted.;)

putty71

Thanks for that it's a start.
I have asked them to cancel the PPI, but I suspect they sent this letter regarding the cancellation and not against me reclaiming the ppi full stop. If I did not have the ppi then my monthly payments would be in the region of £330, not £416 ish so why if I cancel does the amount not go down to £330 ish?????? If it does not and only reduces by £8 I am as well to wait until the five years are up and claim back the full amount.
So confused - can anyone else help please?

Putty

di3004

putty71 wrote: »

Thanks for that it's a start.
I have asked them to cancel the PPI, but I suspect they sent this letter regarding the cancellation and not against me reclaiming the ppi full stop. If I did not have the ppi then my monthly payments would be in the region of £330, not £416 ish so why if I cancel does the amount not go down to £330 ish?????? If it does not and only reduces by £8 I am as well to wait until the five years are up and claim back the full amount.
So confused - can anyone else help please?

Putty

Bumping this one up for you Putty.:D;)

melorablack

You don't get a full rebate of insurance when you cancel which is why your payments haven't gone down by much. Plus the majority of the insurance is paid for at the start of the loan, which is another reason why it doesn't go down that much when you just cancel it.

di3004

melorablack wrote: »

You don't get a full rebate of insurance when you cancel which is why your payments haven't gone down by much. Plus the majority of the insurance is paid for at the start of the loan, which is another reason why it doesn't go down that much when you just cancel it.

Thanks for clarifying this Mel for Putty, your a star.:A;)X