Advice and/ or experience sought on PPI

lotte123

Hi guys

Have been advised to post here after initially posting on the DFW site - but if there's a better place for this question then please let me know!

Have recently defaulted on 2 loans. One with first direct which they immediately reduced down by removing the PPI part (as no longer relevant) and are now accepting reduced payments. The second is with AA who refused my offer and wouldn't enter into dialogue and have now passed the whole amount with PPI and all to a debt collection agency. I borrowed £5k from them last summer and now owe nearly £8k - which is working out at about 100% APR as I've only had it out for 6 months. They didn't missell this as far as I am aware (I'm self-employed but it seems to cover that) but does anyone have any experience of getting this taken off at this stage of the proceedings. It's a bit galling to have to pay for something that is now completely defunct.

Any suggestions??? Thank you!

lotte123

Thanks to Avogirly and her thread on reclaiming the PPI. Although I am with a DCA I have written to the original lender anyway asking that they refund the amount.

The relevant bit of the letter is below:

You have recently chosen to pass the debt to a collection agency and I was shocked to see that the amount you have passed to them includes a substantial amount for Insurance and its interest despite the fact that, according to your terms and conditions, I am no longer able to benefit from any cover as I have fallen into arrears for more than 4 months.

I would therefore ask that as this insurance is no longer valid and I am in severe financial difficulties you refund this either directly to J & J Collections or myself. It does not seem justifiable to charge me for almost 60 months of insurance that I am not entitled to claim on.

I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service.


Will update the post as to how I get on. Keep those fingers crossed!;)