Want to reclaim PPI on a paid FD loan

[heavy_t]

I had a loan for about a year between Sept 05 and November 06 with First Direct, on which I paid £1150 worth of PPI before having the good old "lightbulb moment" and restructuring without the PPI (they wouldn't let me just cancel it). I have taken income protection insurance instead which is a MUCH better deal.

I have bank statements showing the original PPI amount charged and then the PPI refund amount at the point that I restructured. This "refund" was the amount of PPI would have still had to pay had I continued with this loan. Subtracting the refunded amount from the original PPI figure gives me a figure of what I have paid, £1150.

I am very sure I was mis-sold. When I arranged the loan over the 'phone I actually tried my best to get it without PPI and the lady selling me the loan strongly implied that I wouldn't be accepted unless I bought the PPI.

I've just succesfully reclaimed £2k of bank charges from FD but I'm not sure whether they would cough up so easily on the PPI. I am worried that making a second claim against them might result in them closing my bank account or even worse, demanding the loan back in full, which I couldn't do.

Any thoughts?

Thanks in advance

[Bicester1]

Hi

Like you I have a loan with the Nat West who I am pursuing for charges. I raised the same question about them demanding early repayment and was told by other CAGers that they cant as long as you are up to date with payments etc.

It has been stated many times in this forum that it is not acceptable to make the taking of PPi a condition of being given a loan but I cant find an actual law or reg that says so. What is true is that they cannot add the cost of the PPI to the loan and then charge interest on the total sum.

See: London North Securities Ltd v Mr

Hope this helps.

Bicester1