Advice on PPI

mleonard79

Hi everyone,
My mum took out a Lombard loan in October last year for £15,000 over 5 years but they put PPI on it which was costing her approx. £50 extra a month. She doesn't need this and was basically told at the time that she couldn't have the loan without it. I'm helping her with her finances at the moment so I phoned them to cancel it and they said that was fine but they would have to send a new agreement in the post. The agreement has arrived and they are reducing the term of the loan to 48 months cutting 4 months off the previous term. Therefore the payment is only reducing about £13 per month. Once working the figures out this seems about right though. However they are only giving back £1684.98 of the premium when it was £2622 to begin with which means they are taking £937 for only eight months. This seems extremely steep. I understand that you pay back more of the premium at the beginning of the loan but it still strikes me as unusually high. I'm just wondering if anyone can give me any advice on whether or not its worth complaining about this or if it would be a waste of time and we should just accept what they're offering (the agreement has to be signed and returned this week.) Also if she signs this does that mean we're basically saying this is fine and can then not complain about it? Thanks for any opinions.

Michelle

Rafter

Michelle,

If she was told she would not get the loan without PPI then it is mis-selling.

With the office of fair trading doing an enquiry at the moment into PPI Lombard will have to take any potential misselling complaint very seriously.

That seems to be your best route to getting the £937 back.

The banks use a system called 'rule of 78' to calculate PPI refunds. Using the arguement that the loan is bigger at the beginning, more of the insurance premium gets charged in the early months.

A misselling complaint seems like your best option.

R.

skintharry

Hi

I have similar problem of wanting to cancel PPI (at time of loan I was told it WAS compulsory). Anyway, phoned bank ref.cancelling and was told "Our advisors would not have said it was compulsory, only RECOMMENDED. Please call in to branch and we can restructure the loan for you".
I have read the other lenghy thread about PPI, and am not any wiser!!!!!!
This basically boils down to me proving it was mis-sold, which is impossible...

Anybody have clear,concise info. on how to prove it was mis-sold????

HELP

mleonard79

Hi again,
Just to update we sent the form of the new agreement back so the new agreement without PPI will start next month. I've now got the address to write and complain to. Can anyone give me any pointers on what to include in the letter in order to get the best results?? Any help on how to prove the PPI was mis-sold would be of great help. Thanks a lot.

Michelle

mleonard79

Hi again,
Just bumping this up to the top again in case anyone who can help has missed it!! I really need to get this complain letter on misselling the PPI done now so any help on what exactly I should say to them in order to make it look as professional as possible (ie any technical terms I can use to make it look like I know what I'm talking about) in order to elicit the best response would be really helpful. Thanks again.

Michelle

fusar

Hi,

I took out a loan with the Alliance and Leicester last year for £6000. At the time, I was on a temp. contract and also self-employed. I have since wanted to cancel the PPi, which their advisor "highly recommended" that I take out - otherwise I felt my loan would have been refused.

I have since learned that I was mis-sold the PPI as I was working on a temp. basis for a recruitment agency and worked on a self-employed basis as a freelance writer. If my circumstances changes, I would not be able to apply for help through PPI because I was not on a permanent contract.

I have written to the bank explaining this, but they still refuse to cancel my PPI stating that " we feel that your employment status of being self-employed does not justify us cancelling the PPI cover". They didn'tmention anything about my temp. contract either. They also said that there is no proof that I was "hihgly recommended" to purchase the PPI by their advisor (which I was). They also stated as I didn't contact them during the cooling off period, I have no legal right to ask for my PPi payments back or cancel the PPI cover.

I am prepared to fight this to the bitter end, as I feel so fobbed off, and I believe that I am in the right. I can prove my employment status at least.

Can anyone give me some advise and point me in the direction of how to respond to their letter

Many, many thanks
Sarah