im worried about claiming PPI because of outstanding balances - advice please

Micraplay_2

first of all, Hi. this is my first post here.

im currently trying to work out what to do with regards reclaiming PPI.

I already have a claim being processed against MBNA by a company representing me because i wasnt sure how to go about it. this claim is for PPI on a credit card.

I also want to claim against Egg for PPI on a loan which i took in 2006 but paid of early in 2009.
I also have an Egg credit card which also has PPI running on it i have just found out.

the Egg loan is paid off and closed, but my MBNA credit card and Egg credit card still have balances of about £9,000 in total. (both very near their limit)

Im worried that my claims will result in the companies saying they want the accounts settled and i cannot afford to do this, yet the PPI reclaim would greatly reduce the balances, and help me on the way to settling the accounts if claims were successful

has anybody any experiences after payout? or would it be irresponsible of a lender to leave you in the lurch like that?

ps, ive just done the FOS ppi questionnaire, do i just post this with a cover letter to the company i wish to complain to?

thanks

di3004

Hi there and welcome

I would not worry, they will not expect you to settle as such, but if successful, they may possibly refund the amount towards the balance of the card, anything remaining plus interest they normally award directly to you, this will reduce the balance and things should carry on as normal, however you will have to request they cancel the PPI as well, so no further payments are taken for this product.

All you do, if you have a go yourself, its all free with help from this site, just complete the reclaiming questionnaire, this replaced the template letter, complete and send to whom set up the policy from the start (their head office), keep copies of all you send and receive in case you need to go back to this at some point.

They normally have 8 weeks, but may ask for more time.
Hope this helps, good luck and please keep us posted.

Reclaiming questionnaire here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim

And a Happy New Year! :beer:

liam12779

^^^This^^^^^
All i can add to this is definately do the work yourself, dont have a company do it for you. They will be taking some of the money that is rightfully yours!! You will see on these forums the amount of people who have claimed themselves and won, for the simple task of filling in a few questionnaires and a bit of time phoning and chasing companies for responses and updates.(oh, and a few stamps!!)
It will feel a lot more satisfying when you get ALL of YOUR money back rather than some company taking some off you!!!
GOOD LUCK!!!!! (You will always find people on here willing to help with any problems!!))

Micraplay_2

thnaks for the reassurance. ive already strated writing the letter so will get my claims sent next week. thanks

plumfin

Hi Micra, I am in the same boat. However, I sent 3 letters to Egg for a loan and 2 cards that still had balances on them for about £10K in total. I had offers on all 3 within a week, no question. They insisted on paying some of the balance on the cards, and leaving me with lower payments, but as my loan was in order, I was offered the payment either to me or to the loan. I paid the loan off with it, so def worth getting those letters in as soon as possible to Egg. I was amazed at their speed to be honest, and now I just pay the normal payments the cards. They had been cancelled anyway, so I didn't lose any other funds.

As an example, my loan had been running for about 5 years, £11K, and I cancelled PPI in Jan 2009. They offered me £3K which paid it off, I checked on here and was advised this sounds about right. Card 1 had a balance of £3500, had it since 2002 I think, was offered £1200. Card 2 was similar, lower balance, was offered £900. HTH xxx

Micraplay_2

yeah thats great. my egg loan was £6500 and had ppi of £1250 added to it. i payed this loan off 6months early in 2009. my egg car balance is around £3100 and has fluctuated from zero balance o maxed since ive had the card since about 2002 i think. ive already written my loan letter, i'll do one for the credit card too now. if im successful they may well pay up enough to wipe 60% or so of my debt with them which would be nice

plumfin

Hope it all goes well for you, will check back in. I was amazed at their speed of response - I applied for all cards and loans online, except for the last topup loan, which was done over the phone. They did deny misselling, however, but made a final offer. Good luck with clearing the debt - they are very good at calling me incessantly, although I appreciate the problem is of my causing!

Micraplay_2

hi again, quick update. i tested the water with egg by sending them a letter asking for the PPi on my loan back. had a reply within a week to say they were looking into it. about 10days later i had another response saying my complaint had been upheld - WINNER :-)

they said they will give me a refund but they will have to wait until the result of the Judicial Review has been announced so they know how to calculate what the should repay me.

a good result anyway, just an open ended wait now as nobody seems to know when the result of the judicial review may be announced.
in the meantime ive gona ahead with asking for the PPI back on my credit card now too.

thanks for the advice guys

amersall

Micraplay wrote: »

hi again, quick update. i tested the water with egg by sending them a letter asking for the PPi on my loan back. had a reply within a week to say they were looking into it. about 10days later i had another response saying my complaint had been upheld - WINNER :-)

they said they will give me a refund but they will have to wait until the result of the Judicial Review has been announced so they know how to calculate what the should repay me.

a good result anyway, just an open ended wait now as nobody seems to know when the result of the judicial review may be announced.
in the meantime ive gona ahead with asking for the PPI back on my credit card now too.

thanks for the advice guys

Well done :T:T:T:T hope the jr doesnt take too long.

Micraplay_2

it will takwe forever. just been fobbed off for a while with that excuse i think. so im going to write to them saying that i will not wait 12months or more for the JR to be finalised before they decide what they owe me. therefor i'll take my case to the FOS for them to review

di3004

Micraplay wrote: »

hi again, quick update. i tested the water with egg by sending them a letter asking for the PPi on my loan back. had a reply within a week to say they were looking into it. about 10days later i had another response saying my complaint had been upheld - WINNER :-)

they said they will give me a refund but they will have to wait until the result of the Judicial Review has been announced so they know how to calculate what the should repay me.

a good result anyway, just an open ended wait now as nobody seems to know when the result of the judicial review may be announced.
in the meantime ive gona ahead with asking for the PPI back on my credit card now too.

thanks for the advice guys

Fantastic :T Well done!:beer:

Hopefully there will be news sooner rather than later, fingers crossed.;)