What does this mean???

Margoriglick

Hello,

Have received the following in the post:

Dear Miss Margoriglick,

A while ago you purchased PPI cover in relation to a secured loan from Paragon.
We have the reviewed the circumstances in which we sold such policies and it appears that in your case we may not have fully explained to you that if you were to cancel the policy the rebate of the premium that you would receive was not on a pro rata (that is a straight line) basis.
If you have any concerns and wish to have your situation reviewed, then please write to the address at the foot of this letter.


So as per the title, does anyone know what this means?? I take it i should write a letter requesting this back?
Many thanks for any replies

dilus

Margoriglick wrote: »

Hello,

Have received the following in the post:

Dear Miss Margoriglick,

A while ago you purchased PPI cover in relation to a secured loan from Paragon.
We have the reviewed the circumstances in which we sold such policies and it appears that in your case we may not have fully explained to you that if you were to cancel the policy the rebate of the premium that you would receive was not on a pro rata (that is a straight line) basis.
If you have any concerns and wish to have your situation reviewed, then please write to the address at the foot of this letter.


So as per the title, does anyone know what this means?? I take it i should write a letter requesting this back?
Many thanks for any replies

I don't fully understand it but this is taken from Wikipedia

Insurance cancellation method
Calculation of return premium of a cancelled insurance policy is often done using a cancellation method called pro rata. First a return premium factor is calculated by taking the number of days remaining in the policy period divided by the number of total days of the policy. This factor is then multiplied by the policy premium to arrive at the return premium. Traditionally this has been done manually using a paper wheel calculator. Today it is normally done using an online wheel calculator

I guess they are saying you would not get back what you should in the event of cancelling the PPI and do you wish to complain?
I would be looking at whether you need the PPI at all and complaining about being sold it in the first place, considering there being this glitch in their sales technique. I think they are saying if you do complain, we won't fight it Give them a ring to clarify what they are saying in English

Margoriglick

Thanks for that.
I haven't had the loan for about 4 yrs i think it is. I didn't really know what it was to tell you the truth when i took out the loan, certainly wouldn't take it by choice, i get 6 months full sick pay. Was told that i had to take it because i had no credit history and therefore wouldn't get a loan without.
Will give them a ring tomorrow and see if anyone can shed any light.

dilus

Margoriglick wrote: »

Thanks for that.
I haven't had the loan for about 4 yrs i think it is. I didn't really know what it was to tell you the truth when i took out the loan, certainly wouldn't take it by choice, i get 6 months full sick pay. Was told that i had to take it because i had no credit history and therefore wouldn't get a loan without.
Will give them a ring tomorrow and see if anyone can shed any light.

If they are suggesting getting a complaint lodged and they ask for your reason state what you have said above, good luck

amersall

This ppi was mis sold it is front loaded.
Put a claim in for mis sell,do not cancel the insurance wait for the response for your mis sell,they are hoping you cancel the ppi,get a small rebate and do not claim the mis sell.
Look here for other reasons you were mis sold and put a claim in.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step2