PPI Help for a newbie please.

sexyvicchic

Hiya Guys.

I was definately mis-sold PPI in Feb 2009 (was told taking PPI reduced apr of loan). I have filled in forms today to try to reclaim.

However this is where my problem lies...

I did try to make a claim on my PPI. IN Jan 2010 I was signed off work sick. I contacted lloyds and filled out the paperwork they sent me. They covered my monthly repayments for 3 months before deciding that they had made a mistake and they shouldn't have paid out at all due to the nature of my contract of employment (zero hours).

I complained about this and my complaint was rejected however they decided not to persue the monies piad in error. I have this in writting dated June 2010.

I had a phone call from lloyds today to discuss my loan PPI (I haven't even contacted them about it yet; the lady said it was a call to all sold PPI in branch) which I thought was promising in terms of lloyds admitting I was mis-sold the policy.

My concern is that if I make a claim that lloyds will take the money back that they paid out in error on my PPI. The lady from lloyds said she was pretty sure this wouldn't happen but I wanted to know wat u guys think?

I'm scared I make a claim, lloyds reject it then persue me for the money paid in error and I'll be worse off. I'm struggling atm as my work is very inconsistant and really can't afford to end up owing more out.

Would you proceed with the claim?

Thank u for taking the time to read this :beer:

amersall

I would put a claim in, you could not claim as they said you did not work enough hours.
This is a good reason for mis sell.
If you win they will take the money off that they paid you in error.
Look here for reasons for mis sell
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step2
If there are any more reasons then put those as well.

sexyvicchic

Thank u amersall, Like I said in my post i am confident I was missold the policy for a variety of reasons. My fear is the claim being rejected and them claiming the money paid out bck from me, making my money situation far worse.

And to be fair if they take off the money the paid out the claim is actually worth very little.

amersall

I would not worry about this, you made a claim and then were told you were not eligible by the bank, they mis sold on this front alone, if you lose then i would not think they would chase you for this as they are in the wrong.
Send your letter off and let us know how you get on.

amersall

How long did you pay the loan for and what was the monthly payment for ppi ?.

sexyvicchic

The loan was £6000 over 5 years and is still active taken out feb 2009. PPI is £33 a month.

amersall

You should get back 27x 33 plus the interest on those plus 8%,
how much did you get for the 3 months?.

amersall

Also, if you win the ppi total is taken off your loan, this reduces the balance and the ppi monthly amount is taken off your monthly loan payment so you save £33 a month, so it is worth it just to get the balance reduced and the loan reset..

sexyvicchic

£538.76 in total

sexyvicchic

My PPI comes out of my bank account as a seperate payment from my loan tho Although it was sold to me by my bank at the same time as my loan, it just comes out as a seperate payment.

amersall

So with your "win" the ppi you have paid so far comes to £891 so you are up £352 there, that doesnt include the interest, they have to take the ppi off so you wont be paying the £33 a month.
I would go for it, you have valid reasons.