Front loaded PPI

sunny8_2

Hi folks,
Just a quick Q, I have read on a thread that front loaded PPI was banned in 2007, however, a loan i took in 2008 had front loaded ppi incorporated in it and when i complained nothing was mentioned about it?
Is this right? :money::money:xx

magpiecottage

Depends what you mean.

If you mean you paid a single premium for the cover that was added to the loan then that is difficult to defend.

However, the complaint must be made to the firm that sold the policy - which is not normally the lender unless you approached the lender directly.

Niggly_2

sunny8 wrote: »

Hi folks,
Just a quick Q, I have read on a thread that front loaded PPI was banned in 2007, however, a loan i took in 2008 had front loaded ppi incorporated in it and when i complained nothing was mentioned about it?
Is this right? :money::money:xx

Sorry it was 2009 FOS wrote to firms to stop selling it within a certain time scale. However I think I would be right in saying that this the most upheld type of ppi and the chances of success are considerably higher.

N

sunny8_2

Niggly wrote: »

Sorry it was 2009 FOS wrote to firms to stop selling it within a certain time scale. However I think I would be right in saying that this the most upheld type of ppi and the chances of success are considerably higher.

N

Oh thanks niggly, was wishing it was 2007!!! ha. Amersall said originally that they are normally upheld, but i dont seem to have luck on my side:cool:. Its stupid but i only realized in may that it was actually ppi & it only covered us for 5 years but we will be paying for it a trillion months (dumb dumb), however, i claimed - brilliantly i thought - ...but they refused & expressed to it not being mis sold, so off to the FOS i went...i dont hold out much hope, but i never see much about front loaded ppi, so just thought i would ask...fingers crossed !! Thanks for that niggly:j:jxx

Niggly_2

sunny8 wrote: »

Oh thanks niggly, was wishing it was 2007!!! ha. Amersall said originally that they are normally upheld, but i dont seem to have luck on my side:cool:. Its stupid but i only realized in may that it was actually ppi & it only covered us for 5 years but we will be paying for it a trillion months (dumb dumb), however, i claimed - brilliantly i thought - ...but they refused & expressed to it not being mis sold, so off to the FOS i went...i dont hold out much hope, but i never see much about front loaded ppi, so just thought i would ask...fingers crossed !! Thanks for that niggly:j:jxx

The FOS seem to really hate these type of policies because of there exceptional poor value to the client.

If you work out how much it costs you over the term (mine is £150 x 300 mths = £45000) then it is almost impossible to be able to reclaim the cost of the policy because most finish after 5 years.

So the redundancy cover is a max 12 month benefit bloody useless as you would have to make a numeber of claims (in the 5 year time window) and you still wouldnt recover the cost.

The accident benefit is payable 5 years so my total repayment is £749 x 60 (highly unlikely) = £44940 which is £60 short of what i pay for the policy. So it goes against the point of insurance.

I feel sure that the FOS will take a look and come down on your side just based upon this alone. Thats why they banned them in the first place.

N:beer:

sunny8_2

Niggly wrote: »

The FOS seem to really hate these type of policies because of there exceptional poor value to the client.

If you work out how much it costs you over the term (mine is £150 x 300 mths = £45000) then it is almost impossible to be able to reclaim the cost of the policy because most finish after 5 years.

So the redundancy cover is a max 12 month benefit bloody useless as you would have to make a numeber of claims (in the 5 year time window) and you still wouldnt recover the cost.

The accident benefit is payable 5 years so my total repayment is £749 x 60 (highly unlikely) = £44940 which is £60 short of what i pay for the policy. So it goes against the point of insurance.

I feel sure that the FOS will take a look and come down on your side just based upon this alone. Thats why they banned them in the first place.

N:beer:

Heck...well when i looked at ours, it was £2559 upfront added on to the the loan, so i pay £320 a month for 300 months @ 14.7%. Commence date: Oct 2008. When i realized it was PPI, as it wasnt called that, it was some other insurance, i rang the loan company & they said they just stumped the money up, it was the broker, so i rang them & asked to cancel it (this was before i came on the site) and they stated they didn't know where the insurance came from (i have this in an email as evidence & posted that to the FOS also). So after a few days i found out that the PPI DID come from them :mad: so i asked them to cancel it, however i had to sign a form, luckily, i came on to here & Amersall said not to cancel, so i didnt .
The thing is, they also said they had the conversation recorded, which i sent to the FOS & i am heard stating we both have great work benefits, & have private policies & the lady saying it might not be enough - and me asking her advice,.... and her stating we really should have it...no discussion of cost/term/benefits...what other evidence do they need.... do hope the FOS thoroughly look at it..if it is refused i will cancel it as like you say..it's useless...but i will still remain to pay for it over the length of the loan will i because it was front loaded? :)xx

sunny8_2

magpiecottage wrote: »

Depends what you mean.

If you mean you paid a single premium for the cover that was added to the loan then that is difficult to defend.

However, the complaint must be made to the firm that sold the policy - which is not normally the lender unless you approached the lender directly.

Hi magpie,
Do you mean difficult for them or me?
I did, i complained to the lender first but then the broker xx

sunny8_2

Niggly wrote: »

The FOS seem to really hate these type of policies because of there exceptional poor value to the client.

If you work out how much it costs you over the term (mine is £150 x 300 mths = £45000) then it is almost impossible to be able to reclaim the cost of the policy because most finish after 5 years.

So the redundancy cover is a max 12 month benefit bloody useless as you would have to make a numeber of claims (in the 5 year time window) and you still wouldnt recover the cost.

The accident benefit is payable 5 years so my total repayment is £749 x 60 (highly unlikely) = £44940 which is £60 short of what i pay for the policy. So it goes against the point of insurance.

I feel sure that the FOS will take a look and come down on your side just based upon this alone. Thats why they banned them in the first place.

N:beer:

Niggly,

If we were lucky, would they refund us and restructure the loan?:) xx

magpiecottage

sunny8 wrote: »

Do you mean difficult for them or me?

You are making the complaint and they are attempting to defend it.

sunny8_2

magpiecottage wrote: »

You are making the complaint and they are attempting to defend it.

Yes, they are defending it alright, i sent them several letters, but they just referred me to the FOS. Hopefully the ombudsman will thoroughly look through it and fall in my favor but who knows? If not, at least i have tried Thanks for your advice magpie xx