Payment Protection Insurance - refund!

Sybersal

Hi

I am a newbie on this board so apologies if I do something wrong!

My husband and I took out one of those terrible secured loans in May 2005 (the company involved made a huge mess at the time). We managed to repay the loan last year with a huge penalty charge added for early redemption.

We were contacted in December 2006 by the company :T to say ask if we had had adquate insurance - yes on top of the loan we were sold a huge PPI. We already had a PPI with our mortgage so yes we did. I forwarded all the relevant paperwork. We have now been told we should get our money back - hooray!!

My first question is the insurance cost £1800 - do you think we should be entitled to get it all back?

My next question - am I pushing my luck to ask for interest from May 2005 (I think in the region of £250)

Any help would be gratefully received

What a great site - thanks Martin and everyone!

:beer:

jasonking

I am not experienced in this but as nobondy else has replied...I would say you are entitled to a refund based on the unused period of the cover...so if you had a 5 year loan and paid it off 3 years early then you are entitled to a three fifths refund. As they should have refunded you when you paid the loan off then you are entitled to expect them to pay you interest from that date.

Astaroth

Unfortunately not all PPI is paid on a flat monthly basis, in many cases the premiums are front loaded (as interest is on loans) and therefore you get back less than the expected 3/5s that Jasonking mentions