Single Premium ppi help

dixidean

Bit confused here but is single premium ppi a miss sell?
The reason im asking is ive got a n rock loan opened sept 2005 and they have front loaded the ppi, i have read martins article and cant find nothing on it( unless ive misread ). But after reading one or two posts on this forum im sure some people have claimed and been succesfull for this reason.

Apologies if this has been covered before.

dunstonh

Bit confused here but is single premium ppi a miss sell?

For mortgages, nearly always.
For loans, not necessarily. it depends on how the it is charged for interest (many add it to the amount borrowed for redemption purposes but it doesnt necessarily mean interest is being added to it. Some do, some dont.

di3004

dixidean wrote: »

Bit confused here but is single premium ppi a miss sell?
The reason im asking is ive got a n rock loan opened sept 2005 and they have front loaded the ppi, i have read martins article and cant find nothing on it( unless ive misread ). But after reading one or two posts on this forum im sure some people have claimed and been succesfull for this reason.

Apologies if this has been covered before.

Hiya

These single ppi policies are frowned upon and its a reclaim in itself.

They are very costly and not only that for example a loan of say 20 years and a 5 year ppi policy, you would still be paying for the ppi for the life of the loan and yet not protected for the remaining 15 years.
Was this the case for you?

If so then give it a go.

To make a reclaim, you just complete a reclaim questionnaire as shown on stage one below.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim
These were issued by the fos for this purpose and replaced the reclaiming template letter.
Keep copies of all you send to whoever set up and sold you the policy, and receive in case you need to refer to it at some point.

They have 8 weeks, they may ask for more time, if you hear nothing after 8 weeks have passed, your entitled to continue to complain to the FOS, same as if they did not send you a favourable final decision.

Ask for further help if required, good luck.

dixidean

well it was a 10k loan the ppi was 1,305.60 of which 357.70 was interest.

marshallka

dunstonh wrote: »

For mortgages, nearly always.
For loans, not necessarily. it depends on how the it is charged for interest (many add it to the amount borrowed for redemption purposes but it doesnt necessarily mean interest is being added to it. Some do, some dont.

Dunstonh, I don't quite understand that one? What do you mean about interest etc. Can you explain cause I thought that all single premiums had interest charged on them regardless. They are all loans aren't they to pay the insurer up front and being a loan from the first repayment you make they incur interest.

I realise that not all rebates of insurance are unfair but I think that most single premiums are actually not sold in the consumers best interest due to cost mainly?

dixidean

thanks for the replies:)

i recently rang and cancelled the ppi and n rock told me that they had used over 800 quid of it to cover the first few years of the loan when they class me most at risk of claiming ( sorry 10 yr loan 5 yrs left ) so my monthly repayment hardly came down at all , but i think i would of still been covered. Does this make any difference to whether or not i could claim?

di3004

I would also check the checklist of other reasons that may also apply to you....

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#checklist

And if you cancelled after the cooling period, from what I remember on one of mine it did not reduce much either, if I had cancelled before the 30 day cooling anything paid in ppi they would have refunded and reduce just down to the loan repayments, I think that sums it up, but check your policy details if you still have these, they should otherwise provide them free on request.;)

marshallka

dixidean wrote: »

thanks for the replies:)

i recently rang and cancelled the ppi and n rock told me that they had used over 800 quid of it to cover the first few years of the loan when they class me most at risk of claiming ( sorry 10 yr loan 5 yrs left ) so my monthly repayment hardly came down at all , but i think i would of still been covered. Does this make any difference to whether or not i could claim?

If it was a single premium you usually have a loan for it from the lender to pay over to the insurer in full to cover a certain length of time. This is "usually" only 5 years of whatever length of loan you have and you are actually charged interest over the full length of the loan.

When you cancel (again this is usually!!) you are given a rebate which is taken off the balance of your loan but its only a rebate of about 78% (sometimes less) of the unused PPI premium and does not take into account the interest you have been charged so your repayments don't really reduce by much at all.

You now tell us if you think it was missold to you? Work out the full cost (the amount with interest that is) of your PPI over the whole length of the loan and divide it by the number of months it actually covered and then see if you think it was cost effective and sold to you in your best interest. Would you have bought it had you have known this? Did you know that cancelling the PPI would only mean that your repayments would reduce a little cause of the interest? Lots of reasons why single premiums are plain wrong and that is the reason that they are now not allowed to sell them at point of sale.

We are not knocking all insurance though as we do often need it but just the cost of these single premiums. Why would anyone want even more debt when we are already in debt.

Must admit though looking at your figures above it does seem quite low for a single premium on a 10 year loan and could be seen as reasonable. IF this was to cover your loan for 5 years then that would cost you about £25 (a little more) a month which I would say is very cheap compared to some single premiums.

How long did your single premium cover your loan for and what did it cover you for?

dixidean

thanks for the advice but i cant see anything on the checklist that supports me. i applied online for the loan but have all the docs in front of me and i have ticked and signed for the ppi. i just thought that front loading the ppi and the interest of the ppi might of been a miss sell. oh well never mind i still have 3 on going claims to fight for

marshallka

dixidean wrote: »

thanks for the advice but i cant see anything on the checklist that supports me. i applied online for the loan but have all the docs in front of me and i have ticked and signed for the ppi. i just thought that front loading the ppi and the interest of the ppi might of been a miss sell. oh well never mind i still have 3 on going claims to fight for

Its up to you if you feel it was missold, I personally think (that is if this covered your loan for 5 years or more) and you only paid about £27 a month (and that was with interest charged on it) then that was a reasonable deal IMO.

What did it cover you for? Was it just a life cover or Life, unemployment and redundancy and how long did it cover your loan for?

dixidean

it just covered life marshal. i think i have misunderstood what single premium policy means i thought it was when the company added ppi and its interest to the cost of your loan not as the replies on here have stated when the cover only lasts for 5 years and your loan is for longer. sorry for any time wasted.

i dont particulary haxe any opinion one way or the other as to whether it was value for money or not i only remember ticking and signing for it because i really needed the loan at the time and thought it would help my application