PPI success, will my loan be lowered?

[Deleted User]

just received word ive had ppi upheld for a loan in 2006

was told to take ppi on for a year and come back and refinance and take it off....which i did.

now,

loan with ppi ran for a year, was a front loaded PPI, 1 payment per month.

refinanced after a year with no ppi, and it was still basically same ammount i owed!

Anyway, 2nd loan (no ppi) ran for 1 year, then refinanced again in 2008..still active, no ppi.
this is all with same bank (lloyds)

basically it all came from the original loan.

will my PPI success on the 1st loan reflect this loan that is still active (2008 one) as i still owe a bit on it? will amount owed go down?

sorry i have no breakdown ive not received it yet.

1st loan was for 25,000, 6 grand ish was for ppi , worked out at £137 a month for PPI. paid for a year.

they have offered me £5800

-taff

they'll calculate what percewntage of PPI interest was added onto the second loan and refund that.
The amount isn't going to go down unless you pay the redress to the loan.

welshgasman

-taff wrote: »

they'll calculate what percewntage of PPI interest was added onto the second loan and refund that.
The amount isn't going to go down unless you pay the redress to the loan.

Not quite.

There could be an amount that is paid to the loan to put it back as if previous PPI was not applied. This never goes to the customer but the loan. However it is small in comparison to the refund offered, so will not have much effect on the outstanding balance, if that is what you were hoping for. As mentioned, it is up to you to reduce the balance to reduce the interest paid in the future.

HTH