PPI on loans,some info if poss..please.

ReggieBlade

When a loan is paid up early,how is the PPI calculated on my loan/how do i know how much i can claim back on the loan?

Say in a loan for 5k the PPI is 1K but,is paid up after a year...how do i go about claiming if i don't know how much i'm after?

And,if i'm offered an amount..how do i know if it's anywhere near the amount im after?

Cheers.

marshallka

ReggieBlade wrote: »

When a loan is paid up early,how is the PPI calculated on my loan/how do i know how much i can claim back on the loan?

Say in a loan for 5k the PPI is 1K but,is paid up after a year...how do i go about claiming if i don't know how much i'm after?

And,if i'm offered an amount..how do i know if it's anywhere near the amount im after?

Cheers.

Hi, if your loan is paid up early they would look at the PPI payments you made including interest on them and then look at what you were charged at settlement.

They then look at the original loan (without PPI) and take the repayments you would have made without the PPI and then work out what your settlement would have been.

The difference is paid over to you plus 8% statutory interest.

ReggieBlade

Thanks.....the thing is it was a cahback deal.After 5 yrs i got the premiums back what i paid in.

But,i thought if i stopped it ,the premiums would be stopped and that knocked off (i knew i'd lose the casback deal ) leaving just the loan.

Is it a case of misselling?

Cheers.

marshallka

ReggieBlade wrote: »

Thanks.....the thing is it was a cahback deal.After 5 yrs i got the premiums back what i paid in.

But,i thought if i stopped it ,the premiums would be stopped and that knocked off (i knew i'd lose the casback deal ) leaving just the loan.

Is it a case of misselling?

Cheers.

Sorry, not sure I understand it here?

If you have a single premium it is actually another loan (therefore incurring interest just like your original loan) on top of your loan. If you get the cash back back after 5 years then it is just the PPI policy and not the full cost of the PPI and interest so you would still in effect, if the loan went to term, owe all the interest. If you had the cashback back then you would still owe all the interest on the loan for the PPI. This PPI most often only covers 5 years of a much longer loan so the interest is also payable over the full term of the loan so you are still paying the PPI after your cover has ended. Very unfair.

ReggieBlade

Was just an example in the original post.The PPI on the loan if running to 5 yrs is 11k.Would i be able to claim misselling after i thought id be able to cancel it and not pay the insurance.....been running for about 31/2 yrs.