Direct line Loan PPI

lilacbelle wrote: »

Hi there,

Im quite new to 'MSE' and have been reading this board with interest...

I have now contacted Direct Line re: a 5 year loan I have with them, which I have now realised has £1493.83 PPI included in payments, and thats not including the interest on this!

I took the loan out in 2005, and it is due to end in August 2010. When querying the PPI on the phone today, I was told even if I write in and manage to cancel it at this stage, I will only save £53 on the insurance, as they have taken this money in the early years of the loan.

I realise I should have read the agreement more carefully before signing it, but given that when asked over the phone if I wished to take any insurance out, and saying no, I assumed there would be no insurance!

Feeling very silly, but wondered if anyone has any advice, or should I just accept the mistake I have made and get on with paying for it??

Hi and welcome.;)
Even if you did cancel and they refunded you that £53, you can reclaim on the rest of it you already paid in plus the interest.

If mis sold and worthless to you then go for it, more info here with templates:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

In the template letter use your own reasons, they have 8 weeks to respond in full.

Another letter maybe required if they don't resolve this to your satisfaction.
The final response from them should give details of the Financial ombudsman service (FOS) if eligible, where you should be going by when you taken this finance out.

Post all letters by recorded delivery, good luck and post for help when required.

You do not need to put an amount in - on the reclaim letter, the figures will come in handy later on.;)

Forgot to ask in my above post.

Do you still have the agreement for this finance?

If not write to them in a separate letter, enclose a £1 postal order or cheque payment, they should send this by 12 days or requesting this.

However, as they have 8 weeks to respond in regards of complaining and reclaiming some companies send copies this way free of charge, but for a quick method of 12 days, this is another option of having a copy of this agreement.

If you require further documents/paperwork, you can request for a Subject access request (SAR), there is a letter template for this here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553

Where they should send everything requested on the SAR, they have 40 days to comply with this request.
But there is a charge of £10 in cheque or postal order payment for this, as always post by recorded delivery.;)

lilacbelle wrote: »

Thank you so much for your quick response and great advice :-)

I have had a look at the template letters but Im unsure what grounds to claim under??

As pointed out to me by the "lovely" Direct Line person.. I did sign the agreement...
I think I just felt I had confirmed all the details on my loan application over the phone so assumed that any details in the agreement were what I had agreed to or otherwise compulsary (though no one actually said that to me )

What would you advise?

Thanks again xxx

Hi there
Not a problem.

This is always a fob off response, well mainly anyway, if sold online or by telephone, but the FOS are getting used to these type of complaints.

I for one signed the agreement thinking it was all part of the loan, and I know it was the case for many, so for instance, I assumed when cancelling, the whole lot of it had to be repaid back, due to lack of advice at the time.
This may have occured to you, or maybe your employer would have covered you for sickness etc.
Or you may have a pre med existing condition when taking this out - so for instance if you tried making a claim, they would not pay out.

If the loan was over 5 years for example 10 years, the ppi would be for only 5 years, the insurance was added to the loan, you have a reason straight away, as you would still be paying for the ppi for the life of the loan, if you know what I mean, these regulators take a dim view on these type of policies.

The SAR as mentioned above may come in handy later to support your case if this went as far as the financial ombudsman service (FOS).

Hope this helps.;)

lilacbelle wrote: »

Thanks for that, you have been a great help.

Just going to do the school pick up, but guess what I will be doing tonight?? lol

lol......:D, okey dokey, well you know where we are.;)

I shall be nipping out shortly but will be back later, should not be too long if I can help it.;)
Catch you later, and your very welcome.:A