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ppi claim if used the insurance

george9999
Posts: 6 Forumite
hi, does anyone know if i can make a ppi claim if i have used the insurance a couple of years ago, my beef is although i successfully made a claim 3 years ago, i have just received a letter from first plus telling me that the insurance as now expired after 5 years of payments, which means i have no cover for the remaining 14 years of the loan, i was not told about this and find it very odd that the insurance would only cover 5 years, on top of this ive only just realised that for 5 years i havnt paid a penny off the loan, only the insurance premiums, can this be right.
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Comments
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This is correct i am afraid.
Send this letter to FP.....
We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.
1)We/I were not told that the ppi was in effect another loan that was added to the original loan and was repayable over the loan term with interest.
2) We/I were told that the ppi was a 5 year policy, but not told the ppi would still be on the loan to term end with interest.
3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would recive the cashback of ppi but this would not include the interest made on these payments that we paid over the 5 years.
In line with the FOS recommendations it is requested that the overall situation be restored as if PPI had never been included. This will entail:
A refund of the monthly payments that have actually been paid towards the overall loan in excess of those that would have been needed, if the original loan had been sold without the PPI policy.
In addition, interest at the rate of 8% simple per annum to any excess payments made from the time each payment was made to the point that Firstplus pays them back to us. We/i believe we were not given enough information on this ppi to make an informed decision. Had we/i known the full cost of this ppi we would not have taken it.
Unless you can prove without doubt that this PPI policy was fair, reasonable and suitable for my/our circumstances we/I will require you to rearrange the loan as if PPI had never been included on the above loan
This is a win as it is frontloaded,the refund will have the claim amount taken off that you had,but the whole ppi will come off the loan and the monthly payment goes down by the ppi monthly amount.
If you had the cashback after 5 years,they will redress with 3 options,you need to take the one that resets the loan,this will save you thousands over the remaining term in interest and you wont be paying ppi for the remaining 14 years.0 -
thankyou so much for your reply, i will send them a letter and let you know what response i get, thankyou once again.0
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You are very welcome x.0
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hi amersall
do i need to mention that i have made a claim in my letter, or just send it as you have shown it.
thanks0 -
george9999 wrote: »hi amersall
do i need to mention that i have made a claim in my letter, or just send it as you have shown it.
thanks
Sorry i am late replying,just send it as it is.0 -
hi, i have had a reply from first plus, they have acknowledged that they mis sold me ppi and have offered to redress the loan as if ppi was never included, they have given me 2 options.
1/ a cheque for my ppi payments plus 8% interest, less the amount paid to me in my claim.
2/ the same amount being knocked off the loan amount, meaning a lesser monthly payment.
thankyou so much for your help, im very pleased with the outcome.
regards
george0 -
thats a great outcome. well done.0
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george9999 wrote: »hi, i have had a reply from first plus, they have acknowledged that they mis sold me ppi and have offered to redress the loan as if ppi was never included, they have given me 2 options.
1/ a cheque for my ppi payments plus 8% interest, less the amount paid to me in my claim.
2/ the same amount being knocked off the loan amount, meaning a lesser monthly payment.
thankyou so much for your help, im very pleased with the outcome.
regards
george
What option have you taken?.Which one takes the whole ppi off the loan? this is the option you should take this will save thousands in interest over the remaining term.0 -
hi amersall, i havnt decided yet, wanted your opinion.
option 1 refund by chq,
the loan account will be rescheduled to take into account the amendments to the premium and interest.
explanation : we will refund the monthly payments youve made towards the ppi premium back to you. we will then apply the interest paid on the insurance premium plus the value of the full premium to the loan balance. this will result in a reduction of your loan balance and your monthly repayments. the monthly payments due will then be rescheduled accordingly.
option 2 in following post.0 -
option 2
we wish to apply the refund to the balance of the loan, in full and final settlement of our complaint.
we understand that we will not receive a refund of the monthly payments already made towards the ppi insurance premium, and the loan account will be rescheduled accordingly, reducing our monthly payments.
we understand that simple interest of 8% per annum will be paid separately by chq.
Eplanation : the monthly payments made toward the ppi premium will be credited to the loan account. we will then apply the interest paid on the insurance premium plus the full premium to your loan balance. this will result in a reduction of your loan balance and monthly payments, which will be greater than option 1, but no imediate cash refund will be made. the monthly payments due will then be rescheduled accordingly.
what do you suggest amersall.
regards george0
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