PPI Confusion

[Oliver1975]

Hi everyone,

I've read through all these posts with great interest, but it doesn't seem as straightforward as claiming back the bank charges, as it's still in the early stages, and all cases are slightly different.

I took out a loan with Sainsbury's which included a huge chunk of PPI (I only realised that it was included after submitting a subject access request). I have since defaulted on the loan and am currently paying token payments (which still includes the PPI payments even though I'm obviously not eligible for cover - this is the bit that confuses me).

The loan was taken out when in financial difficulties, and I never asked for the PPI. I can see that I signed for it on the application form but there was no option on there to have it removed.

Is it worth trying anything do you think? Many thanks in advance for your help!!!

[reidnet]

Hi Oliver,
Welcome to the confussing world of PPI..lol. You are right in the way that all PPI cases are different but basically the principles of complaining etc are the same in most cases.

There are different types of PPI Policies and you may still actually have cover depending on the policy, If it was a single payment policy eg this is where the lender pays the insurance company the full insurance premium from your agreed loan at the start of your loan. Basically you are buying a policy which the lender pays for staright away and you finance this from your loan.

I would ask them to confirm in writing if you are still covered with the PPI as you are still making payments for the PPI, I cant understand why you would not be covered. Unless there is a clause within the terms and conditions of the PPI or Loan that if you do default. If you have the Terms and Conditions there I would have a good read through them.

It is always worth Complaining to them that you had the PPI added as a condition of your loan, This is not allowed and the PPI should always be clearly optional. Depending on the date that your loan was taken out , If it was after 14th January 2005 they must also have shown clearly the cost of your actual loan with Interest and also the cost of the PPI with Interest as 2 seperate Items.

I have succesfully got a refund plus interest on 1 PPI that I was mis sold, and I am fighting over another one. I am also at the stage of heading to court with the second one, but I think it will be after Xmas before I get the paperwork etc sent off to Wolverhampton.

If you need any assistance feel free to give me a shout and I will try and help if I can.

I am no legal eagle..lol I have just spent several months doing a lot of research and reading up on PPI.

Good Luck M8

Ian