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Loan Payment Protection Rip Off.
Dear All,
I really could do with some advice here.
In March last year we moved into an old house that we found out needed more work doing on it than first thought. We were told by our mortgage advisor to go for a certain mortgage with a large lender and to put down as much of a deposit as possible. He told us that once we were in then we could apply to the lender and get more money for renovations etc.
The lender would not give us anything untill we had the work done so we had to take a secured loan out for 20K over 15 yrs to cover a lot of the work.
The company advertises on Sat TV with a well known intelligent female presenter fronting the advert.
We asked if there were any redemption fees or early penalty clauses and the chap on the phone said no as he knew that we were to pay it off as and when we were to remortgage. As it was a considerable sum we opted for the payment protection but we didn't actually have to take this cover out.This was to cover us for the first five years at a fee of £4500. A lot I know but after the end of the five years you get your fee back (in theory).
We have come to remortgage and want to pay the loan off. We asked them for a final figure.
Bear in mind we have paid almost £3000 in 15 months the total repayable is £24500 pounds including £150 "admin" fee!!!!
It turns out that they buy the insurance cover for the five years to cover us ( we do not own the policy)and lump this straight onto your loan so the loan we took out was actually for £24500 NOT £20000.
We did see this on the contract but it also said that early repayment will be subject to a rebate although not for the full unused cover. I suspect this is just the interest refunded.
I have to pay this for the cover as it is also secured on the property as part of the loan so cannot remortgage until it is all paid off even though we are in dispute.
If I pay this will I still be entitled to the cover and the refund after 5 years as I have bought it ?
My own bank cannot believe the "scam" and have never heard of any insurance like this before. I have cancelled insurance policies in the past and stopped paying them straight away or have recieved refunds on the unused cover.
I suspect when I pay it off then the lender will cash this policy in and win a second time.
In effect for 20K over 15 months it has cost me 8K. The annoying thing is that you think you are doing the right thing getting this cover and the point of contact at the lenders knew exactly what we were going to do....
Is there anything I can do to get refunded on the unused cover? It makes me sick that we've fallen for this....being mugged on the street is more honest.
Thanks in advance,
Hevs Dad.
I really could do with some advice here.
In March last year we moved into an old house that we found out needed more work doing on it than first thought. We were told by our mortgage advisor to go for a certain mortgage with a large lender and to put down as much of a deposit as possible. He told us that once we were in then we could apply to the lender and get more money for renovations etc.
The lender would not give us anything untill we had the work done so we had to take a secured loan out for 20K over 15 yrs to cover a lot of the work.
The company advertises on Sat TV with a well known intelligent female presenter fronting the advert.
We asked if there were any redemption fees or early penalty clauses and the chap on the phone said no as he knew that we were to pay it off as and when we were to remortgage. As it was a considerable sum we opted for the payment protection but we didn't actually have to take this cover out.This was to cover us for the first five years at a fee of £4500. A lot I know but after the end of the five years you get your fee back (in theory).
We have come to remortgage and want to pay the loan off. We asked them for a final figure.
Bear in mind we have paid almost £3000 in 15 months the total repayable is £24500 pounds including £150 "admin" fee!!!!
It turns out that they buy the insurance cover for the five years to cover us ( we do not own the policy)and lump this straight onto your loan so the loan we took out was actually for £24500 NOT £20000.
We did see this on the contract but it also said that early repayment will be subject to a rebate although not for the full unused cover. I suspect this is just the interest refunded.
I have to pay this for the cover as it is also secured on the property as part of the loan so cannot remortgage until it is all paid off even though we are in dispute.
If I pay this will I still be entitled to the cover and the refund after 5 years as I have bought it ?
My own bank cannot believe the "scam" and have never heard of any insurance like this before. I have cancelled insurance policies in the past and stopped paying them straight away or have recieved refunds on the unused cover.
I suspect when I pay it off then the lender will cash this policy in and win a second time.
In effect for 20K over 15 months it has cost me 8K. The annoying thing is that you think you are doing the right thing getting this cover and the point of contact at the lenders knew exactly what we were going to do....
Is there anything I can do to get refunded on the unused cover? It makes me sick that we've fallen for this....being mugged on the street is more honest.
Thanks in advance,
Hevs Dad.
0
Comments
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I had the same problem with HFC now the household bank. We had a change of circumstances which meant I wasn't earning. Phoned HFC(household bank) to cancel payment protection thinking we would at least have that money extra, only to find out we had actually taken a loan out for the payment protection. :(Never again will I be press ganged into buying a ppp.0
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WISH i HAD BEEN AROUND ON HERE THEN MAYBE WOULDNT HAVE FALLEN FOR THE SAME LINE.
hope he as reclaimed the PPI, oh no someone will be coming in to say he needs to fork out 30K on legal bils therfore the shysters are right.0
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