Bank won't pay out PPI Advice

trobbins

Hi,

I'm trying to assist a family memeber with an issue they have with PPI handling by their bank.

They took the loan out in 2004 with PPI. At this time they were in full time work so eligable for payout. Around 2 years ago she was made redundanct, but did get a contract job, which finished in Sept 09. She has now contacted the bank for payout as she cannot find any work at the moment and they tell her she cannot claim. As it was contract work she was doing for the last 2 years I can understand this.

The problem we have is when she askes the bank to stop taking the £40 per month PPI (as they advit sghe isn't eligibal from claims) they sent her a new loan agreement with a higher APR and saying this is how they can remove the PPI.

My questions are;

a) can she claim 2 years worth of PPI back on against the original loan as she effectively wasn't eligable for this period?
b) Can the bank make her sign a new loan agreement as the only way to remove PPI payments from the situaiton?

Any advice would be appreciated.

Thanks