ppi reclaim? on personal loan

pipkinmark

hi,i'm a newbie, i have a 2 years left on my loan of an 8 year loan. on my paperwork i have two quotes. one is loan amount payable each month and the other seperate is ppi. loan is 360 + 110 a month. is this a single premium or am i misled. its 8,060 + 8.9% totalling 11,000 odd. on top of my loan taking it to 110 ppi. Any advice be helpful as i'm not financially minded.

di3004

pipkinmark wrote: »

hi,i'm a newbie, i have a 2 years left on my loan of an 8 year loan. on my paperwork i have two quotes. one is loan amount payable each month and the other seperate is ppi. loan is 360 + 110 a month. is this a single premium or am i misled. its 8,060 + 8.9% totalling 11,000 odd. on top of my loan taking it to 110 ppi. Any advice be helpful as i'm not financially minded.

Hi and welcome
Its possible that your paying the loan with ppi then, so therefore also classed as a single premium.

Was you mis sold the product?

I would check below for more info and if any of it applies to you then give it a go on the reclaiming.

If you have a case of being mis sold ppi for any reason then on the link posted below, it will take you to a reclaiming questionnaire, you complete and send to whoever set up and sold you the policy, and remember to keep a copy as well in case you need to refer to it at some stage.
They have 8 weeks to give a decision, but sometimes request for more time than that, that is okay, just as long as they keep you updated on your reclaim.
The questionnaire replaced the first reclaiming template letter on this site, but if you want to also write a cover letter to enclose with the questionnaire, you can do if you want to.

The questionnaire you will find further down on the link, as stage one, good luck.;)
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

pipkinmark

hi di, can you explain what a single premium is then in simple terms? i couldnt understand why i got charged interest on the ppi of 8.9% and 8.9% for the loan??

marshallka

pipkinmark wrote: »

hi di, can you explain what a single premium is then in simple terms? i couldnt understand why i got charged interest on the ppi of 8.9% and 8.9% for the loan??

A singe premium PPI is actually a policy that is bought outright to cover a certain amount of time and paid for by way of a loan. It is actually another loan (to pay the premium to the insurer) on top of your orginal loan.

pipkinmark

so you think its what i got as i'm paying interest on top of initial ppi?? they wont let me stop the ppi payments saying i have to redo my loan but surely they could just stop the £110 a month as its set out seperate anyway? what should i do??

marshallka

pipkinmark wrote: »

so you think its what i got as i'm paying interest on top of initial ppi?? they wont let me stop the ppi payments saying i have to redo my loan but surely they could just stop the £110 a month as its set out seperate anyway? what should i do??

Hi, its not seperate really as you have taken out a single premium which is a loan on top of your loan and treated in exactly the same way as your orginal loan. If the insurer say got £1000 for the premium then you would loan that £1000 from the same people you had the original loan from and although it says "PPI" most probably on the agreement and a certain amount is paid each month towards this it is actually a LOAN to pay the PPI. You would incur interest on it just in the same way as your orignal loan and cancelling it would be like cancelling your original loan too in that a new agreement would be needed.

Also when you cancel you would only get a rebate of the "actual" loan to pay the PPI and not the interest charged on it. If the PPI was £1000 and had interest on it of say another £1000 and you cancelled after only a few months. You would be entitled to a rebate of the insurance but only on the £1000 and not the loan that paid the PPI £1000 and the interest too (being another £1000).

Your repayments would not go down by what you are paying each month towards the PPI as that would include the interest. They would only reduce by a little.

pipkinmark

so, pretty much stuck with it for the next 2 years and no chance of reclaimimng then?

marshallka

pipkinmark wrote: »

so, pretty much stuck with it for the next 2 years and no chance of reclaimimng then?

If you did not understand all the above then it could have been missold to you. They should have made you aware of it being a single premium and incurring interest.

pipkinmark

i thought single premiums were illegal anyway?

marshallka

pipkinmark wrote: »

i thought single premiums were illegal anyway?

Not illegal I don't think but I believe they cannot be sold at point of sale. If you believe yours was missold to you then follow what Di3004 has posted earlier in the thread.

Good luck