[FP]PPI Misold confirmed but can I recieve a refund by cheque or only refund to acct?

Money_Shoe

Hi all,

Im new to the board and saw Martin's tv programe a month ago on TV about reclaiming mis-sold PPI, I was sure I was missold in 2006 since I wasnt told that it was optional and required when taking the loan when I took out 2 loans with firstplus.

So I spoke directly with the fiancial combusman who logged a complaint, a week later I recieved a written confirmation that the issue was being looked into and dealt with...

The other day I recieved a letter from FP confirming that I was missold! This is part of the letter:

"In upholding your complaint, I propose to make the necessary adjustments to your LOAN ACCOUNT to put it in the position as if the payment protection insurance policy had not been taken. This will mean a FULL refund of the insurance premium plus intrerest, and returning the PART of your monthly payments made towards the payment protection insurance premium to you.
The monthly payments due will then adjusted accordingly."

The PPI was worth around 13k (+interest)...

Does this mean that the PPI will simply be removed and a credit issued on the firstplus account?... Since I was missold is it not possible just to recieve a cheque for the full amount of the PPI loan (13k), interest and monthly payment for the PPI instead of it being de-ducted from my account?

Thanks in advance!

jonesMUFCforever

No you can't have your cake and eat it.

They will remove £13k debt and interest from your loan - you will be refunded what you have paid so far in relation to the PPI policy.

Money_Shoe

Could I not argue though that in the policy it states that if no claim is made for 5 years that I can either recieve a refund by cheque or to the loan account directly?....

Where they have simply suggested that my only option is to recieve a refund via the loan account and not a cheque for the amount....

Retired_I.F.A.

What are you on about? they are giving you back the premiums you have paid with interest and reducing your future payments by the insurance premium. As it says, putting you back in the position as if you had not taken on the PPI.

petermb_2

Depending on whether the loan is regulated or not decides if the whole loan can be challenged regarding single premium ppi.

I realise some of you guys find that distasteful but that is a fact whether you like it or not. Where a regulated loan is concerned, that is one under £25,000, the entire loan can be challenged if voluntary Single Premium PPI has been included in the agreement.

Such an action could make the loan voidable.

Money_Shoe

Thanks for your reply peter, my loan was actually for 2 seperate loans total around 100k so Im guessing this would not apply to me, so cant really argue regarding the PPI?

petermb_2

Money_Shoe wrote: »

Thanks for your reply peter, my loan was actually for 2 seperate loans total around 100k so Im guessing this would not apply to me, so cant really argue regarding the PPI?

Not totally so. There will be an issue here to challenge. It just means that you wont be able to challenge the entire loan but you can certainly challenge the ppi itself and demand the full amount back.