company say policy paid up so no claim

excham67

Hi,

I had a loan I took out in Feb 2005 and paid off in November 2005. The loan was secured against my home. I checked my policy to see that they had also sold me a ppi to the tune of £860.00. So they kind of belt and braced the policy. At the time it was difficult for me to get a loan with high street companies and this loan was taken out over the phone with Loans.co.uk who I understand have been fined. I wrote to them asking them to refund the ppi plus interest and they have written back saying policy paid up and therefore no refund due. Where do I stand? Can anyone help?

DrSqueeze

Did you give them full reasons why you felt the PPI was missold? What was their response to those?

excham67

Hi,

I gave them full reasons advising the loan app was done over the phone and that it was secured against the house etc etc and then I checked the paperwork to see ppi was attached. It was Pinnacle Insurance I had to write to and I advised them that Loans.co.uk's reputation was in tatters etc. I asked why if the loan was secured against the house, had they imposed a ppi.

They ignored the content of the letter and advised that because the policy was closed, there was no refund due. ????

dunstonh

I wrote to them asking them to refund the ppi plus interest and they have written back saying policy paid up and therefore no refund due. Where do I stand?

There is nothing wrong with having PPI. So, you are not entitled to any refund just because you had it. You have to have a valid reason for complaint. What was your complaint reason and why did they refuse it?

excham67

I advised them that the ppi was wholly unnecessary bearing in mind the loan was secured against the house. This was "not your average loan" I was in a position at the time where I had just divorced and we had jointly defaulted on our previous mortgage and were blacklisted etc etc so getting a loan in the first instance was rather difficult for me. This loan company had me over a barrel essentially as I was referred to them by somebody else who refused me a loan. I can assure you I havent just seen the words "PPI reclaim" and thought I was instantly entitled to a refund.

dunstonh

I advised them that the ppi was wholly unnecessary bearing in mind the loan was secured against the house.

Which is actually even more of a reason to have PPI. So, an easy rejection for them if that was your only reason.

The greater the financial need, the stronger the reason for having PPI is.

amersall

Look here for reasons for mis sell and if any/all apply to you then put a claim in

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step2

If none apply to you then you dont have a claim.

How have people claimed mis sell of ppi from loans that had been settled years ago,those policies were paid up too!!.
If you were mis sold then put a claim in,as this was secured and it is Loans.co.uk i think this ppi would have been put on at the front of the loan and you would have paid this back over the term with interest.
This type of ppi is frowned upon and i think they are trying it on.

magpiecottage

excham67 wrote: »

I advised them that the ppi was wholly unnecessary bearing in mind the loan was secured against the house.

Do you realise what "secured against the house" means?

It means if you fall ill and cannot meet your loan repayments they can get a court order against you to take possession of your house.

That means you can be thrown onto the street:eek:

No matter why you cannot pay - illness, injury, redundancy or whatever.

For that reason, the Mortgage Code Compliance Board issued good practice guidance to its members which actually advocated getting borrowers to sign a disclaimer if they did not take out PPI for a mortgage.

So as DunstonH says, an easy rejection.