Cancelling PPI - must they do it?

[gyzmo]

Struggling to find something wrong with my flatmate's credit agreement for LTSB credit card (see my notes passim ad nauseam on subject if nothing better to do), I have decided to tackle the PPI thing.

I read somewhere that LTSB require the entire agreement to be cancelled if you want to cancel PPI - they will not agree to do it separately.

Is this true and is it legal? I personally do not see how, but it does come from a respected (if not necessarily accurate) source.

The PPI box was ticked by him on the upgrade application form. But I do not recall seeing anything that he is tied in for the life of the credit agreement.

[maroondevo52]

Hi, Gyzmo.

Do you want this shifted to the PPI Forum ?

Regards.

Scott.

[gyzmo]

Oooh I didn't even know there was one! Yes please!

[maroondevo52]

Thread Moved

[alanalana]

Hello gyzmo,

Struggling to find something wrong with my flatmate's credit agreement for LTSB credit card (see my notes passim ad nauseam on subject if nothing better to do), I have decided to tackle the PPI thing.

I read somewhere that LTSB require the entire agreement to be cancelled if you want to cancel PPI - they will not agree to do it separately. (Cannot speak for LTSB whoever they are? I cancelled mine with RBS on a unsecured personal loan when I found out about mis-selling and they did not require me to cancel the agreement and start a new one. However reading some other threads it appears that some companies are trying this as a way to recoup losses from the PPI rebate. i.e. New agreement new higher APR.)

Is this true and is it legal? ( Personally I would question the legallity especially as a Consumer Credit Agreement normally requires two signatures, one for the Loan and one for the PPI so I would say the two are not bound together) I personally do not see how, but it does come from a respected (if not necessarily accurate) source.

The PPI box was ticked by him on the upgrade application form. But I do not recall seeing anything that he is tied in for the life of the credit agreement.(IMO it is highly unlikely that the PPI would have covered the life of the Loan most PPI policies would only cover 5 years and within that only one 12 month period of sickness and does not always cover all sickness and unemployment eventualities. The interest that would be added to the PPI however you would be paying for the life of the Loan).

I would suggest starting with a Subject Access Request (Statutory fee is £10.00) Gather in all the data you can go through it all with a fine tooth comb. Decide on your reasons for claiming mis-selling and take it from there.

If you check out the stickies at the top of the page and read a few threads you will soon find you feet and also get help along the way.

Hope this gets you started.

aa

	Subject Access Request A Subject Access Request is a demand which you can make to any organisation to disclose any personal information which they hold on you. The right to disclosure of data is provided by the Data Protection Act. There is no time limit. The organisation is obliged to reveal everything they have about you - which you ask for - as far back as you ask for. There are very few exceptions. It does not matter whether the data is held on microfiche, in an archive, on tape, in a cardex system, in sound recordings or in screen notes. Some companies are saying that they do not have to disclose where it would be difficult to do so - "disproportionate effort". This is untrue. Disproportionate effort refers to something else under the Act. If you are seeking bank charges information then you should ask for "all data held on you" and you should make it clear that you want everything as far back as it goes. Do not be put off by excuses. Do not accept being fobbed off. It is not in your bank's interest to make full disclosure to you. This means that it is in your interests to get it. If you have not started gathering your bank charges information yet, then you should start now. There will soon be a big rush once the OFT test case has been settled. Get all of your bank account informtion as far back as possible. At least as far back as 1995. If your bank says that they don't keep data as far back as this, don't accept it. Be persistent. They've got what you need in some form or other.

[gyzmo]

Thanks. The problem is though is that my flatmate actually ticked the box himself on an application form in his own home.

I dont think there is much room to claim misselling. The main thrust of any clim will be any claim taht the whole credit agreement must be cancelled to cancel PPI and as such it constitutes an unfair term. That is the main issue.

I will be SARing(?) them anyway and go through it better than an electron microscope could.

The problem is also compunded by the fact that, some years before the card was "upgraded" (i still have not got a definitive answer as to whether it was upgraded or whether it was a new contract), and I do not know whether selecting the PPI will count as a continuance or a new insurance.

Believe me, this is a mother of a claim

[alanalana]

Hello gyzmo,

having been in touch with the FOS today several times they gave me the general opinion that if you want to cancel PPI off a loan then it should be a renegotiated loan without the PPI. It seems the two do actually go together and if you cancel PPI then the Loan must start again as a separate issue without PPI, It would appear my bank got it a bit wrong.

aa

	The Financial Ombudsman Service For the most part, don't bother. The Ombudsman is an industry arranged service which is under-resourced, takes too long, lacks clear transparency. You have no idea what evidence the FOS has received from the bank or how your complain has really been handled. The FOS is the preferred complaints route for the banking industry. The county court is to be preferred by consumers for its speed, openness, the quality of its awards and also because it will award 8% interest on top of any damages won by you. The Ombudsman should normally be used to solving little technical difficulties or customer service problems which you have expereinced with your bank.

[RedVixen]

AA this is a credit card so cancelling the PPI should not be a problem

I can't find it now but I am sure that the FSA have stated that in the case of loan agreements if loan provider insists on creating a new loan when a customer wants to cancel PPI fairly ie not bump the interest rate up on the new loan to cover the loss in income

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[gyzmo]

Oh this gets worse.

He has now contacted the credit card co by phone and asked for reduced payments, which they agreed to.

But.... They have not reduced interest and PPI is on there. The PPI alone is more than the payment he is making. Gonna see if I can get this sorted out because he has just turned a litle dent into a huge crater.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[RedVixen]

Did he ask for the PPI to be removed??

[gyzmo]

I dont know and he does not remember. I doubt it - he is convinced that it is needed and cannot believe that you can buy protection elsewhere at a fraction of the cost.

The whle situation is becomming a nightmare. I would have thought the credit card co would have seen a modicum of common sense and realised that the repayment agreement is basically flawed seeing as the balance is increasing each month.

[RedVixen]

Is he working BTW

Maybe you should have ago at finding the cheaper products to show him.

[gyzmo]

I have done and he is more or less convinced now (and he is working).
However, I still need to know the answer to my original questions!

[RedVixen]

I am wondering if what you have read about cancelling and whole agreements applies to loans

PPI is a separate product so legally I can't see how they can refuse to cancel it without cancelling the whole agreement but they in the case of loans with an up front single premuim on, it is set up to make it difficult.

For credit cards it is a an amount added every month so I really cant see who they can refuse to cancel it certainly with my MBNA card it was canceled at my request over the telephone I just said I didn't want it anymore - mind you I was in full time education and they should never have sold it in the first place knowing that - but seriously it is a separate product and they should remove it at your request with credit cards.

[RedVixen]

However Lloyds are particularly high up my list of poo holes so they will probably try to wriggle out of cancelling a lucrative product.

[gyzmo]

Thanks. I hope they do try and wriggle out of it - gives me more of a fight!