succesful claim,shouldn't payments be lower?

carol_a_2

Hi, Would appreciate advice I succesfully reclaimed ppi in january 2012(Lloyds tsb and was very easy!!) however it was on a current loan, they are still taking the same amount monthly for repayments as before, despite saying the repayments would be reduced. I did write to them querying this but tbh couldn't make head nor tail of reply!!I am just getting on the case again as we've had family stuff going on which have let this slip, surely an amount of the monthly payment would have been for the insurance anyway,so regardless of the fact they have taken a lump of amount owing, the insurance premium wouldn't still be taken, Sorry if this is bit garbled,hope you get the "jist"

[Deleted User]

You may need to cancel the insurance yourself.

jellie

If you carry on making the same payment, you'll pay off the loan quicker as all of your repayments will be going towards the loan, rather than loan + PPI.

[Deleted User]

jellie wrote: »

If you carry on making the same payment, you'll pay off the loan quicker as all of your repayments will be going towards the loan, rather than loan + PPI.

That's assuming the PPI has actually been cancelled. I was told by HSBC I had to do this myself due to "security" when I had a similar query.

amersall

The bank should have cancelled the PPI when the complaint went in, Lloyds do this as a matter of course the OP should not have to do this,they cannot redress the PPI and it still be on the loan, this is paying for the PPI twice.

I would get back in touch, cancel the PPI and ask why this was not done and make sure the loan is reset and the PPI that has been paid from the redress date, to date refunded.

dunstonh

If the PPi is front loaded, then the payments wouldnt change. Only if it was monthly premium PPI would the payments change.

-taff

They have probably refunded you the entire amount plus interest, so have not altered the loan. What does the letter from them say?

amersall

dunstonh wrote: »

If the PPi is front loaded, then the payments wouldnt change. Only if it was monthly premium PPI would the payments change.

In both cases the payment would change, wouldn't it?, with monthly premium the PPI payment would be removed but the balance remains the same and with front loaded the whole PPI is taken off the balance and the monthly payment reduces by the monthly PPI amount.

amersall

-taff wrote: »

They have probably refunded you the entire amount plus interest, so have not altered the loan. What does the letter from them say?

This could be the case, but the Op stated.

they are still taking the same amount monthly for repayments as before, despite saying the repayments would be reduced.

[Deleted User]

amersall wrote: »

In both cases the payment would change, wouldn't it?, with monthly premium the PPI payment would be removed but the balance remains the same and with front loaded the whole PPI is taken off the balance and the monthly payment reduces by the monthly PPI amount.

Yes, but all this supposes that the PPI is actually cancelled. When I queried the same a year ago I was instructed to ring the insurer myself to cancel it. Upon cancellation, my loan repayments were reduced accordingly.

I think the OP needs to contact the Bank urgently.