Are we entitled to a refun from PPI

magicmaria

Hi

My BF has just cancelled the PPI on a loan with Northern Rock - they have redone a new loan at a higher APR how nice. He made 11 payments on the PPI which was a whooping £111.31 per month.

Under the loan agreement it says

"if you do not wish to continue your northern rock personal loan payment protection plan after you have settled your agreemetn you may cancel this insurance by telephoneing xxxxxxxx As long as you have not made a claim against the plan you will be entitled to a refund of a proportion of the net premium paid??

is he entiled to a refund of the monies already paid

BullyCornedBeef

Im getting a refund of all the money I payed into my PPI scheme, its about £500.

puppy

Hi Bullycornedbeef,

Could I ask how you did that? As my h2b took out a loan and also took out PPI ( even though I told him not to). I think it's a such a waste and would like to cancel it .

Thanks.

Astaroth

You can get a full refund only if you can prove that it was miss sold rather than you simply deciding that it isnt something you want any more.

If you cancel it out of choice then you will only be entitled to a partial refund - like it or not you have been covered for the period prior to cancelling the policy (in the same way you cant cancel your motor insurance in month 11 and expect a full refund for the 11 months of cover because you didnt happen to claim).

There are a number of different ways that PPI can be charged (mainly either a monthly fee or the full term premium being added to your loan up front) and depending on which way it is done dictates how the refund is calculated

BullyCornedBeef

I got my PPI refunded today! Unfortunately they didnt give me the refund in my account, instead they took the PPI refund (£450) off my new loan. However, its a better deal for me long term.