repaid loan early

millenuim1

I got a loan out back in 2005 and was sold PPI I paid the loan off early, can I still claim for the full PPI amount or just for the months I paid for?

millenuim2

millenuim1 wrote: »

I got a loan out back in 2005 and was sold PPI I paid the loan off early, can I still claim for the full PPI amount or just for the months I paid for?

Absolutely.
Claim back every penny you haven't been charged. :cool:

dunstonh

millenuim1 wrote: »

I got a loan out back in 2005 and was sold PPI I paid the loan off early, can I still claim for the full PPI amount or just for the months I paid for?

No.

Your redemption figure on the loan would have included a rebate of PPI. Typically on a relatively pro-rata basis. A successful complaint would take into account the rebate.

millenuim1

So the original PPI would have been over £5000 and because I only paid 5 instalments and then paid the loan off in full the bank are only offering me the 5 payments only, can I challenge them and ask for the full amount?

dunstonh

millenuim1 wrote: »

So the original PPI would have been over £5000 and because I only paid 5 instalments and then paid the loan off in full the bank are only offering me the 5 payments only, can I challenge them and ask for the full amount?

You seem to be mixing up single premium with monthly premium. If you paid 5 monthly premiums then that is all you will get back if the uphold your complaint.

Where is this £5000 you refer to?

[Deleted User]

millenuim1 wrote: »

So the original PPI would have been over £5000

But you'd only be able to get a refund (assuming your complaint is successful) of this amount if you actually paid it. Full redress is a refund of all PPI paid, plus attendant interest, plus 8% simple interest. How much the PPI would have totalled if it had gone the whole term is irrelevant.

sunshine1980

I took out a loan for £5,000 with Lombard (now part of RBS) in 2002. Was meant to be over 5 years but I paid it off in 2004. Added to the loan amount was £630 of PPI. This part of my monthly payments.

Anyway I applied for PPI refund to RBS in November last year and my complaint was upheld (even though I did ask for PPI at the time of applying for the loan) and I got a refund of £1060 in January this year which was the £630 plus the 8% interest per year since I took out the loan. So even though I never paid the full amount of PPI I claimed that back plus interest.

[Deleted User]

sunshine1980 wrote: »

So even though I never paid the full amount of PPI I claimed that back plus interest.

Your redemption figure on the loan would have included a rebate of PPI. Typically on a relatively pro-rata basis. A successful complaint takes into account this rebate, so the amount you received won't have been the full £630 originally agreed. I think you are forgetting the attendant interest paid in addition to the 8% simple interest.