adivce needed on payments on cancelled ppi

foxdog

Please can someone advise me on the following problem [sorry it's a bit long].I took out a loan in sept 2002 and also had ppi included [asked for this so no mis-selling],the repayment was £153.76 a month with the ppi being 26% of the monthly instalment,total being £193.73 per month then and have stayed around that amount,at the present moment it's £202. In jan 2005 because of two missed payments the ppi was cancelled [didn't know this until july 2009].Now this is where i need advice,because the ppi was cancelled,should my payment amounts have droped from £193.73 back down to £153.76 [26%,roughly £40 per month] when it was cancelled? If this is the case,i have been over paying by £40 per month for the last 5 years [as it looks like i am still paying for the ppi even though it was cancelled].Also can i claim this money back from the loan company and if so how do i go about claiming this back as it is quite a lot of money.

zppp

The insurance is not spread equally over the loan. It is similar to interest, you pay more at the start of your loan, and that reduces monthly. This is because the insurance is front loaded and interest is charged on the policy.

If you feel you were missold the policy, then follow the reclaim guide.

foxdog

Sorry maybe i didn't explain the problem very good.The jist of it is in 2002 i was paying £196 including ppi,now i am paying £202 and no ppi cover [forgot to say the loan ends in sep 2010 this year],i still seem to be paying for the ppi,if this was not the case the premium would have droped by 26% ? . I am paying for something that i don't have.

corbyboy

You will probably have to phone them up to get a definite answer. If you missed two payments I don't understand why the PPI would get cancelled anyway. Perhaps they are using the larger payment to reduce your loan balance more quickly.

And as zppp mentioned, your PPI payments may have been 26% of your monthly payments at the start of the loan, but that percentage will decrease the further into the repayment period you go.