Advice Needed

[andybellenie]

Right here goes HFC, HOUSEHOLD BANK, BENEFICIAL FINANCE(or whatever they are known as this week)

I took a loan out for a total of 7612.80 at 60 months 126.88 repayments in 2003.

Also with that loan I got PPI for a total 1175.23 at 29.82 at 60 months in 2003.

Total Repayment 9402.00 at 156.70 per month.0

Thats the overview of the loan.

I telephoned to cancel my PPI as I felt I had been mis-sold the PPI and didnt need it and never needed it in the first place. I was told to come to the branch to look at loan and take the ppi off.

Just been in a couple of hours ago and was told that I couldnt have the PPI Total taken off my loan as I had agreed it with the consultant and an Account Manager - and if I wasnt happy I should have cancelled it earlier.

So asked them to cancel the PPI and I would pay 126.88 for the remaining 24 months on the loan - they then told me that I had already paid the full 60 months of the PPI and if I wanted to cancel it then my repayments would go up 20squid - so i am basically F@$ked.... I did however finally get a settlement figure of 3415.27 with a rebate of 465.53.....

If any1 has any advice on what I could do next please let me know.

Cheers]

Andy

[reidnet]

Hi Andy,
Sounds like one of the good old Single premium policies, which you finance with your original loan. These are they type of policies that basically trap you with that loan until it runs its full term otherwise you stand to loose a huge chunk of the original policy cost should you cancel it.

Most companies will state that the only way to get rid of this type of PPI policy is to settle the current loan with PPI in full. They will more often than usual suggest that you finance this settlement figure by taking out a further loan from them without PPI.

You can always shop around for loans from other providers to get the best Interest rate available to you. Thats what I finally did and reduced my Interest rate from 8% APR Variable to 5.8% APR fixed rate. I am of course still fighting for the total refund of the PPI policy Amount plus Interest as I was Mis Sold the policy at the time..Basically I was told no PPI then No Loan.

Good Luck

Ian

[andybellenie]

should I then write to HFC to ask for refund of the full ppi or would I be wasting my time?

Just really annoyed today after hearing that I had somehow paid 60months of PPI and am only 36months into the loan -

[reidnet]

Originally Posted by andybellenie

should I then write to HFC to ask for refund of the full ppi or would I be wasting my time?

Just really annoyed today after hearing that I had somehow paid 60months of PPI and am only 36months into the loan -

Hi Andy,
That is normal practice for these Single Premium PPI policies, you finance the policy by increasing your original loan amout. The premium for the policy is then paid in full by the lender to the Insurance provider, If you wanted to hack them off a bit too you can ask them to tell you what level of Commision was paid on this policy?.. As stated on Trevor McDonald last night it can be anything from 50% to 90% of the price you pay for the policy. And remember if your loan is for over the 5 years you will of Course not be covered after the 5 years unless you take out another policy or arrange PPI yourself from an Independant Provider.

I can give you an example of what I was offered when I asked about cancelling a similar PPI policy.. The cost was £3388.00 plus of course Interest ( another £4000.00), After around 30 Months of the policy running I asked what refund would be given if the policy was cancelled..Well it was a staggering £97.00. So you can see what sort of offer they may make you ..Something wich you pay over £7000.00 in real terms and they offer you under £100 after it has run for half of the cover period. I had no claims on the PPI either, so no excuses there for them.

Ian

[andybellenie]

So I dont really have any chance of getting a dime back!! I wouldn't mind but the loan started with a laptop purchase from dixons - the funny thing is I dont even have the machine anymore as I bought another with cash. Will be so glad when this pain in the arse loan is out of my life!!! already received £170 from Abbey as an offer of goodwill - claiming over £700+, my fight against banking institutes continues.........

would all the complaints I have put in - be on my record when I apply for a mortgage as I have finished uni and have been trying to claw back my overspending in terms of the amount of money the banks have ripped me off!!

[reidnet]

Hi Andy,
there is still hope that you may be able to get some of the PPI premium refunded, Have a look at your policy and there are normally conditions that you can cancell the policy. Beware though what they tend to offer as refund if you cancel one of these policies is pretty small.

As it is a single Premium Policy you have taken an additional amount on top of your original loan to pay for this Insurance. So technically you will still have to pay the loan at the same rate.

INMHO you made a bit of a mistake by trying to discuss this with them in person, It is far better to put all your complaints / arguments in writting, that way you know you have covered every point and will not be fobbed of by them so easily.

Ian