PPI Reclaiming successes and failures

amersall · 24 August 2011 at 10:15AM

Niggly wrote: »

No Name (not me) but been helping an FP customer with 3 loans each consolidating the other. Full value of the redress a shade over £50k:eek::eek::eek::eek::j:j:j:j:T:T:T:T:T:money::money::money::money:.

What a day

Niggly:beer:

:beer::beer: Brill :j:j

Niggly_2 · 24 August 2011 at 10:17AM

What that means is that if your monthly payments are £400 a month (for example) and £100 of that is for the PPI (plus interest) then in future the lender can only charge you £300 a month as they can not charge you anymore for a non-existent PPI policy. Therefore, you don't get the future part back in cash but it becomes a saving against the original loan repayments.

GE capital are saying that the payments will remain the same. I am with you on this but if this is the case she will have to be given £8100
now so her payments stay the same as the ppi is cancelled as if it doesnt exist meaning the £8100 is floating around as a refund.

N

Sophieh_2 · 24 August 2011 at 10:21AM

Derwent wrote: »

You have to split the PPI into 2 elements - the bit you have already paid and the bit you would pay in the future through your ongoing monthly payments.

You will get back in cash the part you have already paid plus interest. The PPI policy is cancelled at that point.

So, going forward, the lender can no longer take monthly PPI payments from you for a policy that doesn't exist.

What that means is that if your monthly payments are £400 a month (for example) and £100 of that is for the PPI (plus interest) then in future the lender can only charge you £300 a month as they can not charge you anymore for a non-existent PPI policy. Therefore, you don't get the future part back in cash but it becomes a saving against the original loan repayments.

Hi and thanks for the reply. The PPI was cancelled anyway in 2009. But when I spoke to GE Money yesterday, they specifically said that the PPI was added to the loan at the start & that the whole amount was spread over the 180 months. They also clarified that unless someone (ie ME or loans.co.uk) pay GE the 8100 + interest, then the loan remains the same, (payments & balance). And as we are not planning to do that - who will be?? Surely loans.co.uk will not refund the premium + interest twice?? That's the bit I just don't get, cant get me head round it at all! :eek:

loopyloz84 · 24 August 2011 at 10:24AM

RED_FRANKIE wrote: »

Hi all

I wondered if anyone could offer some advice - I had 3 claims - 1) egg paid out without even asking a question! 2) halifax paid after a little bit of messing about ( but not much ) and i'm now left with MBNA ( virgin credit card).

Its gone all the way to the questionnaire and now they are apparantly saying that as I ticked the box online ( so they say) then they have rejected the claim. They said a letter came to me advising thsi last mont - which I havent had - and the ywill now send me a copy...

I am waiting for this letter to confirm this and then it will go to the ombudsman - I have kept the copy questionaaire, plus the claim is already lodged with the ombudsman from months ago.

I wondered if anyone had been through this and still ultimately had success - and what chance is there via teh opmbudsman - do they fair well in getting these decisions overturned? Its about £2k and im not working so would be very handy!!

I am grateful for any comments

Thanks everyone

Hi

Sorry to hear that you appear to be in the same situation as me with regards MBNA

I received the same "you ticked the box" rejection, but I sent them an email yesterday asking them to reconsider their position and backed it up - if you find my previous post, I posted a copy of the email I sent them - feel free to use any of it if you decide to challenge them

Fingers crossed it gets sorted out in the end

Sophieh_2 · 24 August 2011 at 10:28AM

Niggly wrote: »

The rules from the FOS on a loan that is still in force say that you should be put back in the poistion as if the PPI didnt exist.

When you took your loan out You borrowed £30000. However to protect the payments a policy was bought on your behalf using another loan to pay for it. In your case the cost of this extra loan was £8100.

The policy will be in force for the first 5 years of the loan and then stop meaning that you have no cover for the remaining 10 years.

You will pay interest on this loan over the whole of the 15 years.

At 10 % the cost of this £8100 loan over 15 years is £87.04 meaning that you will pay a total of £15,667.74.

What happens when a complaint is upheld is this.
The payments you have paid to date will be returned to you and simple 8% interest is added.

The loan company then would remove the PPI from the account so that no more interest is payable for the future payments.

Using the example above;
If the premiums were paid for 80 months then £6963 would be returned to the customer (£87.04 x 80) plus 8% interest

The loan company would then take off the £8100 PLUS A LITTLE INTEREST from the total loan amount to ensure that the future loan payments reduce by the payments made to ppi.

The total cost UK loans to put you back where you belong is
refund of the premiums paid to date plus 8%
Refund the single premium ppi off the loan plus interest to ensure future payments would reduce by the ppi payments.

What you are saying is that uk loans are paying you both amounts and you are deciding not to pay off the loan for ppi keeping the payments as they are. Hence the payments all come to you.

I am convinced that the broker would have to liase with GE and say what is the cost to us of reducing the current loan balance so that the future payments at the original loan cost. I hope they have.

My suspicion is that they will pay you a goodwill type of gesture.

So in my opinion Yes in orde to be fully compensated you need a both the ppi refund of premiums plus interest and the return of £8100.

I could be wrong I havent dealt with a case where the customer is being allowed to keep the compensation that would have gone to restructuring the loan, except through the FSCS and the broker has gone bust.

N:beer:

Our posts must have crossed! Ok I think I'm starting to get it now (FINALLY I hear you say! lol) I didnt think Loans.co.uk would be liaising with GE to restructure the loan, in my little brain I was taking GE out of the picture entirely as they effectively nowt to do with the refunding of our PPI. Bottom line is then that loans.co.uk have to refund what we have paid to date (premium + interest) to US, then pay GE whatever necessary to bring loan back to what it would have been without the PPI? Am I there yet?? lol Thanks again for all your patience and help! :T

di3004 · 24 August 2011 at 10:38AM

Jocee395 wrote: »

Well, I received a call from HSBC yesterday, after the CEO had passed my e-mail on.
They have agreed to settle all 4 claims :j
No idea on how much I'll be getting back yet (I never did the calculations) but as the smallest loan was around £16k and the biggest was £32k (I had a good time as a student?!?!) over a period of 4 years, I am hoping it will be more than £50!!! They said it could be up to 8 weeks for the calculations to be done, so just got to wait to hear back now.
Thanks again for your help with the contact details Di.
Fingers crossed for everyone else awaiting news!

Well done, that is fab!:beer:
And your very welcome!:A

tifosi · 24 August 2011 at 10:46AM

amersall wrote: »

Halifax do have the extension :D:D
A poster on this site who shall be nameless (begins with the initial T:rotfl:)
Was having a blonde moment
They have been forgiven :)

So, this "HBOS" right, well, ya see..................

D'oh!

So sorry to all who got messed up by my "Blonde moment" (and also sorry to any Blondes that might offend!)

:rotfl:

Katinkka · 24 August 2011 at 10:58AM

Well I found out that both the brokers and insurance company that sold me the ppi are in liquidation and so I called the FSCS who also told me that I can't claim as it was sold before January 2005. IT seems so unfair! I am pretty devastated about it and can't understand why so many other people seem to get their money back when they took out their polices before us.

It was sold to us in May 2004 for single premium of £3060 for only 5 years cover of the 22yr loan.

Woe! I should have known better than to get my hopes up.

IANC · 24 August 2011 at 11:07AM

Just spoken to my lovely HBOS claims handler and a letter was sent to me yesterday upholding all 7 loans and my credit card. :j:j:j:beer:

No figures yet, so looking forward to seeing them :T

This letter just asks me to accept and then they calculate.

But full contractual interest will be repaid. The Credit Card could be very interesting as the APR is around 29%.

I'm over the moon as this could have quite a large impact on my life financially

The_Marksman · 24 August 2011 at 11:08AM

IANC wrote: »

Just spoken to my lovely HBOS claims handler and a letter was sent to me yesterday upholding all 7 loans and my credit card. :j:j:j:beer:

No figures yet, so looking forward to seeing them :T

I'm over the moon as this could have quite a large impact on my life financially

:rotfl::j:beer: GOOD NEWS! WELL DONE! :beer::j:rotfl:

PPI Reclaiming successes and failures

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