what is single premium ppi?

mbrad_2

Hi all, i've tried searching the forums for the answer to the question but i'm struggling to get a definitive answer. If someone could explain in leymans terms please i would be greatly appreciative.
Also i may as well ask if which policy i have so here goes
I had £1,870.00 of ppi added to a £10,800.00 loan, which totalled £14,246.46 including interest. £2,102.67 was the interest charged on my ppi.
The total of £12,670.00 was paid into my account and instantly the £1,870.00 was taken straight out.
The loan was set up to be repaid over 42 months in one payment of £339.21.
I repaid the loan after 15 repayments but did not receive any ppi back.
Hope it all makes sense Thanks for any response

gramochroi

mbrad wrote: »

Hi all, i've tried searching the forums for the answer to the question but i'm struggling to get a definitive answer. If someone could explain in leymans terms please i would be greatly appreciative.

Hi, single premium PPI is when the insurance is added to the loan amount at the start of the agreement rather than spread out over the term of the loan. Interest is then paid on the loan and the insurance. You know you have it if the repayment is shown as a single repayment on your monthly statement.

If it was not single premium your statement would show one amount for the loan each month and a second amount for the insurance.

It sounds from what you said that your PPI was single premium.

mbrad_2

Thankyou, thats what i thought but wasnt sure as i couldnt confirm through another thread. Hopefully this thread will help others who arent sure.
Also why is this a good reason for a successful claim? How would i make it clear in my letter?

gramochroi

mbrad wrote: »

Thankyou, thats what i thought but wasnt sure as i couldnt confirm through another thread. Hopefully this thread will help others who arent sure.
Also why is this a good reason for a successful claim? How would i make it clear in my letter?

You just say in your letter to the bank that the PPI was front loaded and therefore a loan within a loan paid to term end with interest.

Give all the details you have in your letter, things like amount of loan, amount of PPI, start date, end date, etc.

Front loaded PPI claims, I understand, have the most success.

Best of luck.

gramochroi

gramochroi wrote: »

You just say in your letter to the bank that the PPI was front loaded and therefore a loan within a loan paid to term end with interest.

Give all the details you have in your letter, things like amount of loan, amount of PPI, start date, end date, etc.

Front loaded PPI claims, I understand, have the most success.

Best of luck.

ps Sorry, front loaded is the same as single premium. x

mbrad_2

Again many thanks, i shall compose my letter adding the single premium ppi at the end. Also is it worth mentioning that i repaid the loan early 15 months into a 42 month plan and did NOT receive any premium back. I distinctly remember the guy at the bank saying i would get nothing knocked off for early repayment. Once again many thanks

gramochroi

mbrad wrote: »

Again many thanks, i shall compose my letter adding the single premium ppi at the end. Also is it worth mentioning that i repaid the loan early 15 months into a 42 month plan and did NOT receive any premium back. I distinctly remember the guy at the bank saying i would get nothing knocked off for early repayment. Once again many thanks

Yes, do say this. Let us all know how you get on, should be fine. All the best.

[Deleted User]

mbrad wrote: »

I distinctly remember the guy at the bank saying i would get nothing knocked off for early repayment.

A pro rata rebate of your PPI would have been routinely applied, so unless you have hard evidence to the contrary don't include "hearsay" type concerns in your complaint.

gramochroi

Moneyineptitude wrote: »

A pro rata rebate of your PPI would have been routinely applied, so unless you have hard evidence to the contrary don't include "hearsay" type concerns in your complaint.

Sorry, got this bit wrong. Thanks for your correction, Money!