Personal Loan Insurance(PPI)If Misold? Can It be refunded?

robster999

:beer: This is my first post so apologies if I have not done this correctly. I do not understand threads and posts but am keen on the main money saver site and think its great. I have always had a lack of loyalty to companies such as gas and electricity suppliers/ credit cards for 0% balance tranfers etc and only this last month have achieved a one off bank charge refund of £25 for a template letter sent for cost of a First class stamp and so far got £75 back for one phone call to Halifax re MEAF's. (2 other lenders being pursued as I write this.

I need to know for my sister who took out a loan in jan 2006 to repay an existing loan with the same bank and consolidate other debts. Because of the loan amount, the bank insisted on the loan being joint with husband. £5,550 loan protection was added. She assumed that the protection would remain the same as the loan she was repaying and was not told that the benefit would be for the first named on the policy, ie her husband. If this had been discussed at the time it would never have been accepted. Any advice re claiming a refund of the PPI or pointing me and my sister in the right direction would be appreciated.:beer:

regularsaver1

usually ppi only covers the first named applicant. did they both look through the paperwork? what was the problem covering the husband?

sounds like the reason he was added was become her income was not sufficient to merit the increased new loan

robster999

Thanks for your reply
Just spoken to big sis
seems they probably didn't read through paperwork and it wasn't made clear on taking loan out. However her complaint is that she is not covered by a policy that she makes payments for. The previous loan in her name only obviously did.

A11yson

Depends if the PPP was a condition of the loan - if so they probably won't be able to cancel it without closing the loan and opening another - and that will cost. Anyone selling the insurance should have explained the terms and conditions to them, and made it clear what they were and more importantly were not covered for. I think they could have a case for mis-selling. Also there are quite a few companies that offer this type of insurance and for a lot cheaper.

nomoneytoday

How is it the banks fault that she didn't read the paperwork before signing?
There is a key facts document with all new products...

regularsaver1

it doesn't matter who pays for the loan because it is a joint loan and they are both liable

robster999

:beer: Thanks to all of you for taking the time to reply.
seems like she may be barking up the wrong tree.
She will still be quids in thanks to the advice on main site
e.g Bank charges- she has sumitted almost £900 of charges to be repaid

Out of interest, does anyone know where I can get a good guide to investing in property abroad i.e which country, best resorts, getting finance.

I've scoured 'tinternet and there is so much info out there I am going round in circles. Me and the missus are remortgaging by end of March and are thinking of releasing equity or having part interest only mortgage for property overseas venture.:beer:

Marauder_2

I too am a first-time poster here, but really needed to get this down, if only to make sense of it all .

I am sure that I was miss-sold a Personal Loan from the (then) manager of my local bank (about 5-6 years ago). I was literally cajoled into it by him, replete with assurances that I would be far better-off consolidating my few debts (I had in 1999, graduated - with a student loan - , worked for a company for almost two years and had recently been promoted to an IT post within that employment).

Literally days after signing these Personal Loan forms, I was hit with a bolt-out-of-the-blue by my then employer, who served me (and many other staff members) with a redundancy notice of 30 days.

I immediately telephoned my bank, and then left my workplace to take the letter of impending redundancy to the manager, to request I nullify the loan consolidation agreement, but he assured me that I was protected under the terms of the loan by Employment Protection Insurance, which I had agreed to have attached to the loan.

Fast forward 6-7 weeks, when I get a telephone call from my bank, informing me that I am not in fact covered by the Employment Protection cover, as I had been with my company of employment for less than 2 years. - I might hasten to add here that I was actually three weeks short of 2 years service.

I was then requested to start repaying the loan. At that point I was on state benefits, a repayment amount was negotiated and agreed, but I soon began defaulting on some of the repayments (which I was no doubt charged for).

I sought legal advice at the CAB, who 'investigated' the case, and advised me to approach the bank with the request that I was refunded the full amount of Employment Protection Insurance cover I had already paid, which they did, and agreed to take this off the remaining loan amount, reducing this slightly.

I then got myself re-employed, but a few days after this was involved in a devastating non-fault RTA on my motorbike (for which I am, nearly four years later, incapacitated, on state benefits and still pursuing the insurance claim), and then later made redundant by my, then new, employer.

But, cutting to the chase here now, I am presently in the position of the debt having being handed over to a Debt Collection agency (who initially sent me a nice 'bailiff possession-type' default letter), but for which I have recently been able to get the repayments reduced to £10 per month (as I am on a reduced Incapacity benefit and they can squeeze me no more), but will be repaying forever.

The advice I am after is how can I go about ..

A. Proving, or at least, establishing, whether or not I was miss-sold the loan?
B. If proven, can I get some legal action or recompense for the banks actions?
C. Establishing whether any overcharging for some of the many times I defaulted on loan repayments?

or

D. Am I just wasting my time moaning, and continue to cough-up from my benefits?

mister_bojangles

I find it ridiculous that the Payment Protection Insurance is ADDED to one's loan. Does this not amount to 'double jeopardy' - paying insurance and paying interest on the insurance. I am currently considering applying for a loan. The paperwork has come through, but i have not returned it. I originally agreed to insurance. If I choose to refuse the insurance now, is it likely that my 6.5% APR be maintained? Or should I just accept insurance and seek to repay early to cut repayment costs.?