PPI re early repayment of loan

jimbo83

Guys/girls

I took out a graduate loan of £5,000 in September 08 over three years and took the option of PPI (additional £850) with Lloyds TSB.

I am now looking to repay the loan early and the amount they have quoted me is basically my outstanding balance, some interest and an early repayment charge.

However, if i redeem now (whilst i still have 9 further payments to make) they are including the PPI premium on those 9 repayments in the repayment quote which technically i will not be making, nor requiring, as the loan will be repaid.

How can they charge me for an insurance which i no longer require? If i sold my car part the way through a policy, the insurance would just be cancelled - so why is this not the same?

I was lead to believe that it would not form part of any early settlement when i took the loan out.

Am i right to feel this is a bit of a con and do people think i have grounds for asking for the oustanding amount of PPI to be wiped from the repayment quote?

Has anyone else been in a similar situation? If so, what did you do?

Thanks

Jimbo

zppp

jimbo83 wrote: »

GHowever, if i redeem now (whilst i still have 9 further payments to make) they are including the PPI premium on those 9 repayments in the repayment quote which technically i will not be making, nor requiring, as the loan will be repaid.

Have they actually said this to you?

jimbo83

zppp wrote: »

Have they actually said this to you?

My oustanding balance comprises of the capital amount and the PPI remaining.

When i was given the quote i asked what it was comprised of, to which i was told it was : the o/s amount shown on my balance (ie the above), some interest since my last payment and a repayment charge.

So yes, the remaining PPI payments are in there from what i can see

Thanks

zppp

jimbo83 wrote: »

My oustanding balance comprises of the capital amount and the PPI remaining.

When i was given the quote i asked what it was comprised of, to which i was told it was : the o/s amount shown on my balance (ie the above), some interest since my last payment and a repayment charge.

So yes, the remaining PPI payments are in there from what i can see

Thanks

I would suggest you ask for a breakdown of the settlement figure.

The reason being is partly down to the fact that insurance premiums are were not equally distributed over the term of the loan. A rebate is going to be a lot less than 9 months multiplied by the amount per month quoted on agreement, due to the way loans operate.

Also you will have possible settlement penalties that will possibly increase our settlement balance. Ask Lloyds for a breakdown and let us know what happens and the figures.

jimbo83

zppp wrote: »

I would suggest you ask for a breakdown of the settlement figure.

The reason being is partly down to the fact that insurance premiums are were not equally distributed over the term of the loan. A rebate is going to be a lot less than 9 months multiplied by the amount per month quoted on agreement, due to the way loans operate.

Also you will have possible settlement penalties that will possibly increase our settlement balance. Ask Lloyds for a breakdown and let us know what happens and the figures.

Thanks for you help in his.

But do you agree that there should be no element of PPI payments included within the early settlement figure?

jonesMUFCforever

Any PPI refund will be worked out and deducted from any outstanding balance.
If you go to a branch they can print out a settlement figure showing what the PPI refund will be.