WARNING: Halifax want loan repaid after PPI Cancelled

[garyhay]

My other half took out a loan and ppi with Halifax. After a week she called to cancel the PPI and was told to write which she duly done.

She then recived a letter from the Halifax saying that she could not cancel the PPI unless she repaid all the loan and took out another loan.

I don't think so. What they meant was "You bugger, we gave you a better interest rate because you took the PPI"

[reidnet]

What they have done is sold you a single premium PPI policy, they add the total cost of the PPI policy and advance you that sum to pay for the policy, they then add that amount to your original loan and then charge you interest on that amount at the same rate as your loan..
Sneaky or what ..?

You should be able to get them to amment the agreement, especially if it has just recently been taken out.

[garyhay]

They called my other half today and still said the only way to cancel the PPI is to repay the total loan and take out a new one without the PPI.

Can they legally do this? I thought you were able to shop around if you wanted PPI

The cancellation was well within the 30 days

[reidnet]

You are able to shop around for PPI, and you will find the same or better PPI cover from an Independant Insurer for around a Tenth of the cost that these lenders charge.

As you cancelled the PPI within their stated 30day cooling off period I cant understand why they are basically being downright awkward with you. (Check the terms and conditions regarding their cancellation, it normally states that this can be cancelled and all premiums returned), You may have to point out what it states in their terms and conditions to them. I would also suggest that you tell them that you also intend to raise a complaint with the FSA if they do not cancel the policy and return all premiums paid. The FSA are on a mission at the momment regarding Mis-Sold PPI and a few companies have been fined recently for this.

As I said above, they will have sold you a policy that is paid in full at the start of your loan. As for having to settle the loan in full and having to take out a new loan without PPI is a common Answer, To be Honest this is a bit of Bull Sh*t, they can ammend the current agreement, or refund the PPI policy cost back into the loan account and either reduce your monthly payments or shorten the loan term.

Hope that helps

Ian

[garyhay]

thanks reidnet

She has to go to bank tommorow to get new loan at the same rate as her current one without the ppi.

We will see how it goes.

[reidnet]

Just watch how they calculate the settlement figure for the old loan..

Ian

[garyhay]

Loan only now 30 days old and no payments made so not expecting anything more than the base amount.

She (my other half) has made it clear they will loos all her business if they mess about.

Should be fun

[Nightmare4banks]

Hi all!

From my personal experience,

1.The PPI together with contractual interest can be refunded x amount of years down the line.

2.The cooling off period is of no real importance.

3.The only exclusion would be if it were suitable for your needs - however if you have been given a loan to replace a loan you could probably argue to have the PPI and any contractual interest refunded.This is because how deceptive the loan has been setup and not at the APR it is advertised.
This is regardless of your employment status - Mainly many self-employed folks have been sold totally worthless PPI products.

4.There is another very important issue - this is a mathematics argument:

When credit is advertised at x% interest is has been concluded by the Super complaint carried out in 2005 by the OFT that the PPI has increased the debt by around 1/3.Therefore the APR(Annual Percentage Rate) is (incorrect/misleading).

5.From a legal/consumer angle,this would be a consumer credit act breach - misleading advertising.

6.You could also argue that by misselling the PPI the creditor has "deliberately and recklessly" put you into further unnecessary debt.
Putting profits/juicy commissions above quality and suitability of products.


I hope these points are useful to anyone with the "PPI BLUES" lol!

Make those creditors cough up!

[terrymac]

What really hacks them off is that they have lost a nice chunk of commission, and with you cancelling it they have to pay it back, PPI are not worth the paper they are written on as they are not underwritten at source but on a claim so the chances of ever being paid out on a claim are pretty much zero.

[garyhay]

Bank just cancelled the loan with PPI and setup another one without