Have you reclaimed PPI?

Former_MSE_Wendy

Hi

Martin is putting together a full article on reclaiming Payment Protection Insurance (PPI). This is usually sold to you when you take out a loan, and covers repayments if you can't make them for reasons of unemploymewnt, accident or sickness.

We are interested in anyone who has tried to reclaim PPI payments. How has it gone, how you've gone about it, what reasons you can do it for? We'd love to hear your stories if you have tried to reclaim for any reason.

If you have, it'd be great to know some of the facts such as, why you reclaimed, who the lender was, how much you claimed, how long did it take etc.?

Please click reply to add your experiences or discuss. If you don't want to post a reply for any reason you can send me a PM instead.

Thanks

MSE Wendy

hard_working_mum_3

Hi there, I have just reclaimed the PPI on a £20k secured loan. When we got the loan, they quoted us with and without PPI, we told them that my huuby was self employed and that we wouldn't be covered, but they insisted that we would. They sent the loan agreement forms and I sent them back without signing for the PPI. The forms were then returned to us with a note saying that we had to sign for the insurance before we could proceed. Being quite naive (pre MSE days) we signed and returned the forms and got the loan.

After reading about PPI on these boards I dug out the paper work and investigated. Anyway it turns out even though they say that they cover self eployed people you have to have a business to go into liquidation to qualify to claim. As my OH is contracted work to him by another company, he does not have a business so I telephoned the loan company. They said pretty much that I couldn't cancel because the inital 30 days was up. So I wrote a letter of complaint using a template on these boards. I got a reply a few days later saying that they would investigate the misselling, but if I wished to cancel I havd to contact the insurance company, so I sent the same letter to the insurance company.

About 2 weeks later I got a letters from both the loan company and the insurance company on the same day. The loan company said that there was no sign of wrong doing on their part, so I thought that I would have to fight a bit for this. The insurance company said they were investigating and they would be in touch in due course. Less than a week later, whilst I was considering my next move I got a letter from the insurance ompany confirming that the insurance was cancelled and enclosing a refund cheque for over £900. Easy peasy!! I would recommend anyone go for it although I appreciate it may not be as easy for everybody.

By the way, the loan company was capital one homeowner loans and the insurance company sterling insurance.

chickpee

We are currently trying to claim our PPI back from Picture Financial because we were under the impression that it ran for the full term of the loan (20 years) but it is only a 5 year plan. The cost was almost £9000 for a £35 000 loan.

We have had a response that in the initial sales call it was stated to my husband that the plan was for 5 years but my husband didn't take that information in perhaps due to the stress of having to take out a loan in the first place. When we completed the application form, we ticked the box for payment protection thinking it was the responsible thing to do but we didn't see any information on the form that it was for a 5 year term nor did we receive any literature about it with the application.

If we had realised that the term of the ppi was for 5 years then we would never have considered it as it doesn't meet our needs because I don't work and if anything happened to my husband when the plan expired then I wouldn't be able to meet the repayments of the loan.

We have written back to Picture as the next step before we take it to the Financial Ombudsman but todate, we haven't had a further response from them.

I will post an outcome in due course.

tweep

Hi all, ok I need to dig out the paper work and check this out so a fast post, here goes........

My partner went to yes car credit to get a car for work as he is self employed, long story as to why will update later as to why we chose to go there.
Anyway they made him sign PPI £80 per month for 4 years totaling £3840 we tryed to cancel the PPI wen we got home they the person who we spoke to said they would take the car back if we did. There Is only 2 months left to pay of the car at 270 per month.

Im hoping that because he is self employed contractor this cover is sold wrongly (ie he has never been covered) and we can claim this money back!

I will look over the policy and get back.

Thanks Tweep

lucyginger

I have a loan with Nationwide, I pay about £28 a month in PPI. I rang to cancel it after reading that I can get it cheaper elsewhere. There was no trouble in cancelling it, but the only thing is that your monthly repayments do not get reduced. They send a cheque for the whole PPI amount, which in my case was about £1500. The cheque arrived 6 days after I sent off my cancellation letter.

I'm going to use the money to buy a new car, and I will treat the £28 a month which I'm still paying with the loan as though it were a car loan!!

init1972

Can you reclaim PPI payments for a bank loan that has been paid off?

I had a loan for £11k with Natwest (that I was lucky enough to be leant the money to repay it before going onto Maternity leave and now pay back interest free to in-laws) and didn't want PPI but the guy said I should take it as you never know and I could always cancel it blah blah so I took it but thinking about this - do you think I would be able too?

Les x

shockedsaver

Hi all

This is my first post so please accept my apologies if it doest make sense!

I had a loan with HSBC for 12K for a new car and after becoming increasingly frustrated that i wasnt getting anywhere fast in reducing the debt, i looked at how to reduce the debt and increase my payments to ensure i paid off the loan quicker.
I wrote a letter to my local branch informing them that i was 'unaware' that i had this PPI added to my loan (please note that although i did sign to accept this, i was genuinley unaware of what this was and how much it added to my final loan amount). HSBC invited me in for a 'chat' and after i was showed what i had actually signed up for and after some scare tactics; how would i pay if i lost my job?, what if i became ill? (to which i informed them that i would simply sell the car), i was refunded the PPI. They wouldn't refund what i had already paid but did refund approx 1500 pound the remainder of what i had been charged for PPI on the remainder of my loan. In order to do this, i had to cancel the loan and take out a new loan. Due to the time that had lapsed, i really should've been charged an APR higher than the one for the originial loan but they offered me a new loan with the APR applied to the original loan!

I would advise anyone to ask for their PPI to be removed as it adds a considerable amount to any loan.

Good luck!

Ps anyone got any ideas how i can pay my loan (approx 9k) off quicker than the 3 years i have left?

krutendo

I had 2 loans with Beneficial Finance and Online Finance, was hospitalised for 2 weeks then off work for 3 months, 1 month full pay and 2 on half pay. Got the forms and claimed, paid my GP to fill out the forms, £15 each claim and I got £900 from the 2. Didn't cover my salry loss but at least I got some money back within weeks and no problems whatsoever.

AIMEEJAAN

hi i just wanted to know does the loan have to be so many years old as i had a car on finance and was sold ppi or i could nt take the car and was told that i coukld cancel it later on... when i tried i was told that i d have to return the car... i then was expecting a baby and asked if i could cancel it as money was tight but again was told to either extend the years and reduce the payment with the ppi runnin.... after a year i got another loan to repay this and ended up paying less for the car and about 3grand for the remaining ppi... i m not sure if i could claim and if so is there a template letter on site... that i can use as a guide... any1 that can help id appreciate it....

Sal4ever

chickpee wrote: »

We are currently trying to claim our PPI back from Picture Financial because we were under the impression that it ran for the full term of the loan (20 years) but it is only a 5 year plan. The cost was almost £9000 for a £35 000 loan.



I am in the same position as chickpee, I took out a 15 year loan and thought I had bought a PPI
for the full term of the loan. Last September I suffered heart problems and tried to claim from this policy. I was admitted to hospital on 11th September and a few weeks later I realised I could claim(or thought I could). I was turned down as the company said my PPI was for 5years only, and the 5 years was up on 13th September. This was the first I knew of it, as I hadassumed that because i had a 15 year loan, then naturally the PI would run for the term of the loan. Also the cost was £1300 on a £10,000 loan which to me seems an awful lot of money for 15 years let alone 5. If anyone can advise me of any action I can take, I would be very grateful, as I feel this company has cheated me out of a lot of money.

Cemma_2

my partner took out a £6000 loan with PPI in jan 2004 whilst self employed with Lloyds TSB, we were fortunate enough to pay off the loan in full in Nov2005.
We recently raised a complaint about the PPI being useless for the self employed. Yet Lloyds insurance have defended and said that they would have paid out had it have been called for, as the insurance DID cover, self employment.
We've now just re read the paperwork and insurance cover and have noted that as we paid the loan of early we should have been entitled to a rebate of some of the insurance we paid........so our fight continues.........!