Reclaiming PPI on former Egg loans

The_pc_tech

Hello

Require a bit of advice on this as its not straightforward as Egg of course no longer exist.

Am an IT professional not a finance expert so please accept my apologies if my questions appear a bit dumb.

Ok here goes.

I took out a 16k loan with Egg to pay off some other debt back in July 2006, I went with them specifically as I understood I could overpay without penalty.

I arranged the loan over the telephone with one of their underwriters so I could explain specifically what I wanted to do as I thought it might be a little more helpful than dealing with a server somewhere.

During the discussion I was asked about my sources of income, one of which is my Disability Living Allowance, I explained I had Scoliosis of the spine and Cerebral Palsy that mostlly affected my lower limbs.

The loan was agreed with protection which I understand was then underwritten by Norwich Union (I wasn't given the impression it was an optional extra) and the money arrived in my bank account the next morning.

I let the agreement roll on for about 18 months but I did begin to wonder whether the premium I was paying was worth it and whether it would be better if the money was going toward discharging the loan, I'm not quite sure of the total premiums I'd paid up to that point but I think about four grand was loaded on top of the loan.

I rang Egg and they agreed to cancel but I was not offered any refund of premiums paid.

Now I've obviously seen the PPI reclaim ads and heard Martin talk about reclaiming PPI but I was not sure whether it would apply in my case.

Last year I was put at 'risk of redundancy' and had to reapply for my job.

Luckily I was successful but shifts were abolished so I lost a shift allowance which was about 5 grand a year.

Our union had managed to negotiate with management a mitigation package of 1 year's shift allowance to be paid as a lump sum in July's pay.

While all this was going I received communication from Egg stating that the loan was being sold to Moorgate Loan Servicing as Citigroup was selling off the loan book.

I did a bit of digging and found out that Moorgate was part of Paragon which I understand is a small personal finance company, I've never dealt with such firms and really didn't want to now.

In July when I knew I was getting mitigation payment I rang them (Moorgate) up for a settlement figure and was told around £4,200 but that included some interest that would be refunded when the settlement payment cleared.

When the money arrived I rang again to check the settlment figure and ask for account details to issue a BACS payment, I was told the settlement would be acknowledged in 7 days.

I rang my bank and did the payment over the phone just to be absolutely certain all went through OK.


7 days passed and I heard nothing so rang Moorgate and was told they didn't owe me anything but would send a letter acknowledging settlement which they did.

I've added the rest for completeness but I was wondering, can I claim against Aviva for the premiums paid?

amersall

So in Nutshell you want to know if you can claim mis sell of this ppi?:D.
If that is correct,then look here for reasons for mis sell.

http://www.moneysavingexpert.com/reclaim/ppi-credit-card-insurance#step2
If any/all apply to you,then put a claim in.
You need to send this to Moorgate not the insurance.

Just to let you know,you would have paid more back when you settled this loan,as the ppi (less a small rebate of this when you cancelled,if any!) will have been taken of the loan but the remaining ppi would still have been on the loan.

The_pc_tech

Cheers.

Time to fire off a letter to Moorgate than.

I can't remember the exact date I cancelled it, though I've probably got a letter somewhere, is that likely to cause me an issue?

amersall

Just put you cannot remember,this will be fine.
Good luck.