Paid off secured loan, can i claim PPI?

lemonhead_4

Hello all

I am new to this site and hope someone can point me in the right direction with the following question.

I took out a secured loan from Nemo finance 3 years ago, the loan was for £50,000, i then paid it off 1 year later, when i asked for the settlement fee it was for £65,000, i asked why it was so much more and they said its because i had PPI, i said to them that why would i need to pay that extra now as i wont be using the PPI, they said it still had to be added in and that the insurance will still be valid and i can claim on it even though i wont have the loan with them anymore. I found out the insurance would have been with Norwich union, i asked Nemo for something to say the insurance was still valid, they said i dont need anything and if i claim i just call NU and say i had a loan with nemo!!!

Can i claim this money back as i dont see why i should have paid the extra £15,000 when i dont have that loan anymore.

I know this is 2 years on but have only just really thought about it when i saw this web site.

Thanks in advance

smitchy73

I think you may find that the insurance isn't valid without the loan, at the end of the day they wouldn't be paying anything out as you have no loan to cover, should you become ill etc.

However yes you can still claim against Nemo if they were who you spoke to when arranging the initial loan.

Read the main, Reclaiming PPI article on the home page of this site, then start the proceedings by using the Templates, there are timelines etc to follow so make sure you read the article in full and know what you are claiming and the reasons why you are claiming.

lemonhead_4

Yes the loan was arranged direct with Nemo and not a 3rd party.

I have looked at the main page but there is nothing on there on what to do for someone who paid of the loan early but still had the PPI added for the full term amount?

shall i just use what i can in the template letter and adjust accordingly?

lemonhead_4

Have just noticed that there is a part on the template letter about paying the loan early etc, i will give it a go, but i will first look at the documents from nemo, lucky i keep everything

BigCraigJohn

As far as I know ppi is loan insurance to pay payments if you are unable to due to sickness, unemployment, illness etc. No loan = nothing to cover so there speaking out there backside and youve paid for absolutely nothing. Definately reclaim and use the top thread to ask for any advice, some great info in there. http://forums.moneysavingexpert.com/showthread.html?t=524028

lemonhead_4

Thanks for any help so far. i am giving it a go cause i paid an extra £15000 for something i never used and cant use now by the sounds of it, will read all the bits i signed and will send a letter anyway

tsotd

Have been looking at paperwork and dont think i stand a chance, it sais that my loan amount was 50k but the ppi was 13k, but does not say it ends if i pay the loan early, but surely they cant take the full amount when i only used it for a year?

EDIT: DIDNT NOT REALISE MY PARTNER WAS LOGGED ON, I AM LEMONHEAD

elop_htuos

When i speak2 customers on the phone at my job, they get this problem loads, they think they can pay the loan off and ask for balance but they often don't include the payment protection so you pay the loan off but have to carry on paying payment protection. Seriously PPI is bad guys, always catches, just HAVE to read small print and get someone to read it after you to highlight any issues. Where i work a woman is on bonus to get people to include payment protection! Its just where they make extra money!

lemonhead_4

Its anoying as i paid a lump sum but as i paid the loan early i paid it for nothing really, i will still put something on paper and send it off, cant do any harm