Cost of PPI claims? Demand a payback figure myself? Please Help

highland74

Hi Im about to start a claim on PPI from a loan in 2003 - was originally an 8k loan over 24mths (paying aprx £500pm = total to pay back was just under 12k) - it eventually went to collection agency and I think its about 1k left to go. First - You can now get (advertisted on net) an 8k Co-op loan at 7.9% to pay back £360pm for 24 months which is approximately £8500 in total! Why were my payments of apx £500pm equalling 12k payback on an 8k loan so high? Was that the PPI? Second - If I got a payment - How does this 8% interest work? The original loan was for 24 months but its now stretched for almost 10yrs with both bank and collection agency? Third - Also technically if PPI has cost me more than £1k then what is remainding on the collection agency should be nul and void should it now? Fourth - If its the case that the loan would have been paid off years ago without PPI - is there anything I can do to claim for those years of financial stress and strain which it certainly was? Fifth & final! - Could I start off the process (with the Ombudsmans template) with a demand for a figure that I seem fit? And if so - what figure would that be!! Please reply and help! Thanks!

misschicken

First of all you need a reason why you believe the PPI was mis-sold.
If your complaint is upheld then the refund you would receive, in line with the FOS method of redress, is to put you back in the position you would have been in had you not had the PPI. As you still owe money on the loan the refund would be applied to that first and then anything left over would come to you. The 8% stat interest is the 'compensation' element of the refund. You start of the process by putting in a complaint to whoever sold you the PPI adn giving them 8 weeks to give you a final response - remember you need a clear reason why it was mis-sold. You can either write a letter to them or you can use the FOS questionaire or you may find the lender has one on their own website. There's no point making a demand for a figure that you see fit - you would receive a refund in line with the FOS method of redress.

[Deleted User]

misschicken wrote: »

There's no point making a demand for a figure that you see fit

I'd love to read the Bank's response to someone who actually did that!
(Actually, it'd probably STILL be just a form letter;))

For the OP, here's a thread dealing specifically how different complainant situations are dealt with by the Financial Ombudsman's Service:

https://forums.moneysavingexpert.com/discussion/1596473

No compensation for "financial stress and strain" due to defaulting, I'm afraid.

Additionally for the OP , here is the PPI reclaim guide;
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Look for reasons to complain which may apply to your case. Do note that simply having PPI is not a complaint reason.

magpiecottage

misschicken wrote: »

There's no point making a demand for a figure that you see fit - you would receive a refund in line with the FOS method of redress.

I have a complaint on my desk from somebody demanding £5,000 for his time. I am trying to find a polite way to tell him to get stuffed (I'll charge rather less than £5,000 for doing so).