Ppi Am I Still Paying For It???

[REDDRAGON]

Hi,

Have a question hoping someone has the answer.

Took out a loan (re mortgage) in 1998 with first plus also took out ppi with it. Had no qualms about the ppi in a high risk job so wanted to be covered. Right with this deal there was a cashback availability if you do not claim within five years.

signed the deal repayments over fifteen years of a £22,000 loan plus ppi of £4600 monthly payments £336. Lasted the five years took the cashback was told nothing else continueing to pay the same monthly payments now as then.

Two months ago injured in work unable to work applied for the ppi payments told today that because I the ppi only covered the five years not covered.

Now the question if not covered since 2003 with the ppi should I still be paying the same monthly rate now as then? My thought is if I was paying £336 in 1998 with repayments including ppi then surely if I no longer have ppi then my monthly repayments should be reduced to show the fact?.

Anyone got any ideas about this or am I looking at this totally wrong.
Thanks for any replies.

[Russjo]

Have you got the policy details??

[reidnet]

Hi,
Sorry but you have been sort of Had by this lot, The policy as you say only covered you for the 5 years as you have stated.

What happens with their policies, and this is the bit that stinks Im afraid, When you take the PPI they basically add the policy cost onto your loan, then of course you pay Interest on that too over the whole term of the loan, It is like a furhter loan added on to pay for the policy. The whole policy cost is paid to the Insurance company at the start of your loan. I had similar thing with them but it was arranged through GE, I am now taking GE to court over this One.

I also pressume that the loan you have with Firstplus is a secured loan on your property too, If so be careful as sometimes they have a clause in their agreements that you can be held liable for any legal costs in the event of a dispute. I will have a look through the copy Firstplus Agreement that I have here as well.

Unless you have any cause to claim that the policy was mis-sold , ie you were not fully made aware of the terms and conditions of the PPI or that it only provided you with 5 years cover you may not be able to do much about it.

I pressume when you got the Cashback you got the Premium of £4600 less insurance tax of 5% so you should have got approx £4370

Now that you have found out that you have no PPI cover, if you are thinking about taking out new cover for gods sake dont go back to the likes of Firstplus, Try the Independant companies like Paymentcare.co.uk or Britishinsurance.co.uk, you will get cover for about £15 a month if not less.
These companies policies are paid on a monthly basis and are simple to cancel without any problem or penalties.

Hope that has cleared things up a bit, if not Just give me a shout..

Ian

[REDDRAGON]

thanks for your quick replies both very much appreciated.

Regarding the policy, I had to return that to the company when I claimed the cashback so dont have anything written. Have phoned firstplus today ans asked for a copy of the policy but informed that since 2003 they have their ppi policies underwritten with another insurance provider so they may not be able to help my there. The main thing i'm looking at is if as it looks the ppi was loaded onto the loan then the cashback was pretty much worthless as still paying same premiums throughout life of loan. So they give with one hand then screw you with the other.

[reidnet]

Yeah a sweetner, or a con really to get you to take the policy..While the make a killing on the Interest.

Re the Policy, I may be able to help there..lol I have a copy of the policy document that was in force when I got conned into taking out the policy in October 2003. If you need a copy let me know and I will scan it and email it to you. The one I have is Underwritten by my friends at LLoyds, I believe it was just after then they changed to policies Underwritten by Barclays in Ireland.

Ian