Insurance Loan?

J0CK

Hi all,

I recently recieved a statement from my bank for a loan I have with them. The date of first movement on the account was 19.06.2008 and was to run 5 years. In the statement it says the amount of credit provided under the agreement was £4000, but also that the amount of credit - Insurance loan was £1467.10.

Is the insurance loan PPI? If so am In paying interest on it? Do I have any right to cancel it at any time and should a proportion of it be refunded to the account? Do I have a case to reclaim the full amount if I did not understand what they were providing?

To me this seems to be a hugely disproportionate sum for the amount of the loan but maybe I've got it all wrong...

Any help will be much appreciated.

di3004

J0CK wrote: »

Hi all,

I recently recieved a statement from my bank for a loan I have with them. The date of first movement on the account was 19.06.2008 and was to run 5 years. In the statement it says the amount of credit provided under the agreement was £4000, but also that the amount of credit - Insurance loan was £1467.10.

Is the insurance loan PPI? If so am In paying interest on it? Do I have any right to cancel it at any time and should a proportion of it be refunded to the account? Do I have a case to reclaim the full amount if I did not understand what they were providing?

To me this seems to be a hugely disproportionate sum for the amount of the loan but maybe I've got it all wrong...

Any help will be much appreciated.

Hi there

It does look like ppi insurance, just named differently perhaps, like some are, but still mean the same thing.

If you do not have the policy booklet details for this, ask they supply this, they should do so free of charge, and then you can check out for further information.

So for your reasons for being mis sold, complete the questionnaire (these were recently issued by the financial ombudsman service) (FOS) for the use of reclaiming - and you complete and send to whom set up and sold you the policy.
And used instead of reclaiming letters.

You will find the questionnaire further down the page as stage one of reclaiming on this link here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Keep a copy as well in case you need to refer to it later on.

They have 8 weeks in full to respond, also post at your post office for proof of posting.

Good luck.:)

Andy_Boro_2

good luck let us know how you get on, i have seen it called many different things but that looks like PPI to me

J0CK

First of all thanks for the help on this matter.

Ive been to the branch and, after some confusion, the staff member was able to tell me that it is PPI. I asked her wether I was paying interest on the amount and if I was able to cancel. From her reaction I could tell it was clearly a conversion she did not want to have. After she disappeared a couple of times and I had explained I would consider cancelling the insurance she produced a figure which would be rebated if I was to cancel it. However she was unable to tell me wether I was paying interest on it. She then went to get someone who could answer my questions. The man who returned took my mobile number and told me I would be contacted with the information I requested by the end of business in two days time.

Two days had passed with no contact then the next day I received a letter from "Manager, Business Development" (whatever that is) which contained an early settlement quote for my entire loan. I did not request this. I wanted to know wether I was paying interest on the PPI and I still do not know.

Any further advice will be much apprciated.

Thanks.

di3004

J0CK wrote: »

First of all thanks for the help on this matter.

Ive been to the branch and, after some confusion, the staff member was able to tell me that it is PPI. I asked her wether I was paying interest on the amount and if I was able to cancel. From her reaction I could tell it was clearly a conversion she did not want to have. After she disappeared a couple of times and I had explained I would consider cancelling the insurance she produced a figure which would be rebated if I was to cancel it. However she was unable to tell me wether I was paying interest on it. She then went to get someone who could answer my questions. The man who returned took my mobile number and told me I would be contacted with the information I requested by the end of business in two days time.

Two days had passed with no contact then the next day I received a letter from "Manager, Business Development" (whatever that is) which contained an early settlement quote for my entire loan. I did not request this. I wanted to know wether I was paying interest on the PPI and I still do not know.

Any further advice will be much apprciated.

Thanks.

Hi there

I expect there will be interest this is as the norm, but you could request a Subject Access Request known as a SAR, they have 40 calendar days to comply and send ALL the info they hold on your account(s), however, for this request you do enclose a payment of £10 cheque or postal order payment.

There is a SAR template letter below link, if they have a data dept then send to them and make sure you get proof for posting at your local post office.
https://forums.moneysavingexpert.com/discussion/1475553

Hope this helps.;)

J0CK

It seems to me that I probably am paying interest on it and that they are avoiding the issue. And after I mentioned cancelling the insurance they send me info about repaying the entire loan. Logically, this suggests that the only way to cancel the insurance is to repay the loan but I'm betting I can cancel it since they haven't explicitly said I can't.

Think I'm just going to have to start with the letters if I want any answers.
Thanks for the SAR link Di.

di3004

J0CK wrote: »

It seems to me that I probably am paying interest on it and that they are avoiding the issue. And after I mentioned cancelling the insurance they send me info about repaying the entire loan. Logically, this suggests that the only way to cancel the insurance is to repay the loan but I'm betting I can cancel it since they haven't explicitly said I can't.

Think I'm just going to have to start with the letters if I want any answers.
Thanks for the SAR link Di.

Hi Jock your very welcome.

With some banks they suggest to pay the full balance by taking out a new loan without ppi, you can still make a reclaim on the ppi, you should then if successful receive the full amount of ppi and interest back, because of paying off the loan, but still - you can cancel the ppi anytime too - this is your rights to do this.;)

Good luck.