PPI Help

rob69rugby

I'm really frustrated now!! Just had a early settlement figure from Paragon of £38496.70 after taking out a loan of £30000 two years in I have tried to cancel my PPI and they have told me they will give me a rebate of £1938.97 they will deduct this from my monthly payments from £342.21 to £332.08. How can they charge me £8079.76 for PPI but only give me £1938.97 as a rebate. also can I insist on having the money upfront instead of a reduction in my monthly payments? Need advice please!!

Rafter

Rob,

This is 'single premium' PPI which is added to your loan and then interest charged on top.

In this way, you don't start repaying the amount borrowed until several years into your policy and have extortionate insurance costs, despite the fact that the loan is secured on your home anyway.

This is the reason Paragon and other can afford lots of TV adverts using celebrities.

Their 'refund' policies for early settlement are also very stingy as you have discovered.

There is currently an OFT enquiry underway into PPI and particularly this type of insurance.

You might be better of waiting to hear the outcome of that.

Is there any chance you were missold the insurance? Were you at any stage told it was compulsory? Were you self employed or are there any medical conditions or history that might mean that you would be ineligible?

If so, you may have a misselling case and could get all your money refunded.

However, as you only took out the loan 2 years ago, the sellers were much sharper about ensuring they complied with the rules, recording phone conversations etc, so you may be out of luck.

R.