Help please! I'm so confused...

pickleddebt

I have taken a loan for £3.5 k with Lloyds TSB about 10 months ago (5 year deal@19.6%):mad: , this was reccommended to me by my bank manager, to cover my maxxed credit card (£2.5k) and current account overdraft(£400).

I took this loan with the PPI , again recommended by my bank manager, who told me that I might not be accepted without it (the PPI).:mad:
I accepted this at a time ,that I didnt really care about APR's , and didnt do enough research to see what was best for me!:o

Now I have paid them every month (£116) in direct debit as agreed and when I recently checked my balance it was still at about £3.5 k outstanding !!!

I had also found out that my girlfriend is 2 month pregnant, so I decided to start looking after my finances and take control.
So i came to this site, and did all the reclaiming bank charges etc.

When I finally looked at my loan situation, and how i could improve it, I came accross a thread talking about PPI!!!
So I read it and immediately got on the phone to try and cancel mine, as I dont really need it and really cant afford it either!!!
So I call TSB , explained that i wanted to cancel my ppi due to financial difficulties, and they kindly agreed to do this for me, but would mean refinancing the loan! ...to which i stupidly agreed, and consequently got denied due to poor credit rating!!!

Now they wrote me a letter saying:

" thank you for asking about the total to pay off your loan with us.

account no.: xxxxxxxxxxxx
Settlement date : 4 april 2007
capital plus interest: £4047.80
Early settlement fee: £117.31
Insurance rebate due: £686.35

total balance to close the loan: £3478

The total balance to close this loan is valid for 30 days from the settlement date stated above. if we receive your payment after this 30 day period, we will add the extra DAILY interest to the total balance to close this loan.

We have deducted any Insurance rebate due from the total balance to close this loan.

if you would like to, you can go ahead and repay the loan early by either:

1- signing and returning the "early repayment form". we will collect the money from the account you make your direct debit payments from., blah blah blah blah...

OR

2- Send this letter and a cheque for the Total balance to close the loan to us in the enclosed prepaid envelope. please make cheque payable to blah blah blah blah


:eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek:

Now I am sorry to make such an essay of all this but I'm really confused here!!


My questions are:

do i have to repay TSB in full now?
Am i entitled to any of that PPi back , without having to settle the whole thing(as i cant afford to yet) now?
What are my best options and what should i do to get out of this mess?

and finally my last question (rethorical): Am I an idiot for thinking that the bank was going to help me?! ...please dont answer the last one , I know now how much of an idiot i was for taking this loan with TSB.:mad:

Please be gentle and explain this process to me in simple terms as i am very much a newby on this and have been so worried and depressed about the whole thing, that i might just drink myself to death and bury my head in the sand again...:o
Your advice is very welcome, and i need all the help i can get!
Thank you so much in advance!

Pickledebt

pickleddebt

correction! my loan was for 50 month at a rate of 18.32%!
sorry about that....
many thanks

Paul_J

Dont panic mate.
As far as your first 2 questions go, why not just call them up again and ask them straight? Dont be in the dark about these things. Just be up front with them.
Good luck.

ohmsoft

You don't have to repay it, thats only a redemption statment you have there....if you don't redeem everything stays as it is now.

As to being able to cancel the PPI only I'm not sure but as Paul says above give them a call - if you search through the threads here i think there are a few from folk who've managed to cancel theirs.

Don't concerned about taking the loan in the first place, if you can get a better rate do it, otherwise we've all made decisions we regret what matters is your doing something about it :-)

CLAPTON

you do not need to pay the loan off now and can continue as now.

however, i would write to them saying you wish to cancel the PPI and have a refund of the premiums because you only took the PPI out because you were told you couldn't get the loan with out it.
then add.
if you reject this complaint, please explain if there is an internal complaints procedure. If there isn't an internal complaints procedure please provide me with a final response letter so i can take the matter up with the financial ombudsman service.

obviously send it by recorded delivery and keep a copy.

pickleddebt

CLAPTON wrote: »

you do not need to pay the loan off now and can continue as now.

however, i would write to them saying you wish to cancel the PPI and have a refund of the premiums because you only took the PPI out because you were told you couldn't get the loan with out it.
then add.
if you reject this complaint, please explain if there is an internal complaints procedure. If there isn't an internal complaints procedure please provide me with a final response letter so i can take the matter up with the financial ombudsman service.

obviously send it by recorded delivery and keep a copy.

Hi Clapton! Thanks for the advice! got in touch with them, but in order to claim my PPI they will do another credit search and refinance my loan minus the PPI due,(not entitled to any of what i already paid???) now I have POOR credit rating and doing another search will definately worsen the situation! What do I do?
sit tight and wait until it gets better? or do i cancel the ppi regardless ?
The lady in the Customer retention said the termination team are leanient , and even if it gets rejected for poor credit rating, they would "PROBABLY" still cancel the PPI... but "PROBABLY" is not really good enough for me!
What can i do?
Thanks

CLAPTON

i would write to them repeating you simply want to cancel the PPI without refinancing the loan (that's anyway simply a way of increasing the interest rate.)

add something like this :

if you can't agree to this request then please advice me of your appeal procedures. If there is not a appeals procedure please send me a final response letter so I can take the matter up with the Financial Ombudsman Service.

and do just that.