PPI Reclaiming : Do I have grounds?

luxorsandy

I recently cancelled the PPI on my loan and took out a far cheaper independent policy. My montly payment was £75, which I have been paying for over a year. My bank have just informed me that, as I am over a year into the loan, my monthly repayment will not be reduced by £75 as "the risk to the bank is lower than it was at the beginning of the loan". Needless to say, none of this was explained when I applied, as well as the fact that the insurance would be added as a lump sum to the loan amount! Do I have grounds for a reclaim on this basis?

Can anyone help?

prutter

if you believe you were mis-sold the policy then yes.
Check out Martin's main article.

I presume as they aren't lowering your payments by £75 that the term of your loan will be shortened?

luxorsandy

Thanks for your response.

My monthly payments have been reduced, but but only by approximately £50 and not the £75 I was paying and would have been paying for the full term had I not cancelled it.

This issue wasn't mentioned in the main article, which is why I thought I would ask if anyone else had experienced this.