Alliance & Leicester PPI Rip Off

happy_horse

In January 2007 I applied online for a loan without PPI. Before it was sanctioned I was contacted by a member of A&L who talked me into taking out the PPI. I am a self employed Sole contractor, but the salesperson assured me that the insurance covered self employed people. What I didn't realise was that I would have had to have been sub-contracting to a company for a certain period before the insurance was valid.
I wrote to A&L using Martin Lewis' template telling them that I had been misold. I stupidly assumed they would cancel the insurance from that letter. No surprises that they eventually declined my PPI recalim letter and told me that I would have to ring to cancel. When I rang I was told I would need to put it in writing.
I have just had a reply to my cacellation request telling me that my loan account is on a fixed term , fixed rate & they are unable to alter the agreement. They go on to say that to cancel the PPI they would need to close the existing loan and open a new one. The figures they have given me are £20 a month more that they would have been if they just took off the PPI from my existing figure. Worse still my circustances have sent my credit rating down & wouldn't get through loan credit scoring now. I have never missed a payment on the loan. Looks like I could be stuck with the PPI can anyone help please

di3004

happy_horse wrote: »

In January 2007 I applied online for a loan without PPI. Before it was sanctioned I was contacted by a member of A&L who talked me into taking out the PPI. I am a self employed Sole contractor, but the salesperson assured me that the insurance covered self employed people. What I didn't realise was that I would have had to have been sub-contracting to a company for a certain period before the insurance was valid.
I wrote to A&L using Martin Lewis' template telling them that I had been misold. I stupidly assumed they would cancel the insurance from that letter. No surprises that they eventually declined my PPI recalim letter and told me that I would have to ring to cancel. When I rang I was told I would need to put it in writing.
I have just had a reply to my cacellation request telling me that my loan account is on a fixed term , fixed rate & they are unable to alter the agreement. They go on to say that to cancel the PPI they would need to close the existing loan and open a new one. The figures they have given me are £20 a month more that they would have been if they just took off the PPI from my existing figure. Worse still my circustances have sent my credit rating down & wouldn't get through loan credit scoring now. I have never missed a payment on the loan. Looks like I could be stuck with the PPI can anyone help please

Hi and welcome.

You certainly been given the runaround here, I would contact the Financial ombudsman service (FOS) and ask if they are able to investigate this for you now.

More on the FOS here:
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

http://www.financial-ombudsman.org.uk/contact/index.html

Good luck please keep us posted.;)

melorablack

They are right that they can't cancel the PPI without you having to take out a new loan. This is because you will end up paying more interest if they don't open a new loan without insurance.

But I agree with Di - you should take your mis selling complaint to the FOS and see what they say.