Is it single premium PPI and ? PPI rebate??

NurseMoneySaver1122

My partner took out a loan back in 2004. This loan was refinanced several times, but he has limited amount of info on the first loan.

The loans all had PPI which were single premium (added at the start of the loan, along with interest, and to be paid with the general loan).

Briefly his loans were:

Loan 1 - taken out Aug 2004 - Unknown amount (but made 9 payments, equaling £1,102, before refinancing).
Unknown if any PPI rebate was issued.


Loan 2 - taken out May 2005 - £12,418 - Term: 36 months
PPI rebate of £13.38 deducted from the amount you would need to settle your loan


Loan 3 - taken out Oct 2007 - £4,405 - Term 12 months
No PPI refund due as the amount calculated is less than £10


Loan 4 - taken out Aug 2008 - £12,328 - Term 26 months
PPI ended at the end of the loan agreement


All the amounts above are inclusive of the amount borrowed, ppi & the interest for both.


My questions are:

Is this single premium PPI policy a reason in itself to complain about mis-selling, particularly with refinanced loans? Or is that only in the instance where you have not received a rebate and thus the PPI rolled over to the refinanced loan and therefore you're effectively paying twice for the same period of cover?

Is the rebate in itself not unfair and unexplained and so another reason for mis-selling? I'm assuming this is done on a pro rata basis or something, considering the amount he got rebated (from a £1500 PPI cost inc. interest) on loan 2 when refinancing 7 months early.

Just wanted some advice is anyone can help. Thanks

amersall

Single Premium is a reason for mis sell, even if you received a rebate the remaining PPI is rolled into the next loan.

The rebate is unfair and is not explained to you fully, especially with the Single Premium PPI. If you settle a loan early the remaining PPI after the rebate is paid back you in the settlement figure.
You will repay any remaining PPI after the rebate ,on the next loan to term end with interest each time you do this, win win for the banks, you may also have taken SP PPI on the re-loans too.

The reasons for mis sell would be that the PPI was in effect a loan on each loan repaid to term with interest and the unfair terms of the rebate of PPI and the remainder rolled over to the next re-loan to be repaid again to term end with interest.

NurseMoneySaver1122

Thank you for replying.

What did you mean by:
"Single Premium is a reason for mis sell, even if you received a rebate the remaining PPI is rolled into the next loan".

If he received a rebate, surely there is no 'remaining ppi' to roll into the next loan?

I'm still a little confused as to what makes this single premium policy a mis-sell? I understand the refunds were unfairly calculated because he only ever got either nothing bCk or a little over £10.

Just struggling with how to approach the form where you state the mis-sell, because I don't understand the single premium properly.

Can anyone help clarify a little more?

amersall

When you repay a loan early, you get a rebate of the PPI for early settlement, the remaining PPI, as you only get a % of the original PPI depending on when you settled the loan.
The remaining PPI is repaid in the settlement figure.
So you in effect, repay the majority of the PPI back.

The remaining PPI in the settlement figure is repaid from the roll over loan, this means that the remaining PPI is being paid back in the new loan term with interest, the same for each roll over loan after.



"The reasons for mis sell would be..... the original PPI was in effect a loan on each loan repaid to term with interest.

The unfair terms of the rebate, as you repaid the remaining PPI after the rebate, in the settlement figure and the remainder of the PPI rolled over to the next re-loan to be repaid AGAIN to term end with interest.

None of this would have explained to you fully at the point of sale to
make an informed decision."

Also, as SP may not be a win on its own, if you had no need of this PPI, life insurance, savings, maybe a good sickness package from work or had funds to repay the loans in any eventuality, use these as reasons too.

NurseMoneySaver1122

Thank you for clarifying that, I understand.

With regards to other reasons for mis-sell, he did have life insurance but I've been told by a friend that life insurance and PPI are not linked?

Obviously the life insurance would cover him in the event of death, but they would argue that it was appropriate in the event of sickness, redundancy etc wouldn't they?

He is just trying to find out whether he had a sickness package back then

dunstonh

With regards to other reasons for mis-sell, he did have life insurance but I've been told by a friend that life insurance and PPI are not linked?

Just becuase something is an insurance policy, does not make it PPI. You car insurance is not PPI. House insurance is not PPI. Life assurance is not PPI. Only PPI is PPI.

As it happens, you can get single premium life assurance and it can be very effective for the right person. However, that is not PPI. it is life assurance.

Obviously the life insurance would cover him in the event of death, but they would argue that it was appropriate in the event of sickness, redundancy etc wouldn't they?

There is no overlap with PPI and life assurance. So, having a life policy is not grounds for complaint with PPI.