Thread: settled loan, can i reclaim PPI?

Hi,
I'm helping my girl friend recliam PPI on a loan she took out in 2002 for £7800 over 6 years. She was only 20 at the time and this was the first loan she had ever taken out. i feel she was grossly mis-sold this loan as the total repayed at the end of the term was £15999.12.

The PPI was a single premium added to the loan amount at the begining of the loan (£3555.55).

She was basically told if she didn't take out the PPI she wouldn'y be accepted for the loan.

We settled the loan over a year earlier than originally agreed in July 2007. We were only refunded £252.41

I don't know much about reclaiming PPI but i'm currently reading up using this site and moneysavingexpert.com.

So my original question is can i claim back PPI even though i have settled the loan??

Thanks

Bob.

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From what I can gether yes you can still claim.
I have just sent by recorded mail my first PPI letter.
I was charged a single premium of nearly £4500 on my loan and had no option to take the loan without it. I repaid the loan after 19 months and got NO refund. The insurance was just added to the whole loan. So I payed interest on that as well.

I will keep tabs on how you progress, and keep you informed how it is going with mine...

sounds the same as us. we paid back the loan 16 months early and got a rebate of just £150 from the insurance company.

we also paid interest on the whole sum £7800 + £3555.15.

Going to post my letter now!!

Yes you can Claim, If the PPI was mis sold you have grounds to claim it back.

Ian

sent my letter off on Thursday 11th October recorded delivery. This is what i said.

Dear Sir/Madam,

Ref : Loan account number-xxxxxxxx
I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

I took out a £7800.00 loan at your branch on 27/09/02 and also bought a single premium protection policy which would cost me an extra £3555.55 over the life of the loan. The name of the salesperson who sold me the policy was James Bond. The total amount of my premiums plus interest was £15999.12.


I settled this loan 16 months earlier than originally stated on my loan agreement on 26/07/07 by paying £3302.95 which was the quoted settlement figure.

When I took out the loan, I was told that my application would be refused if I did not also buy a PPI policy. The Financial Services Authority’s advice to consumers is that, while it does not breach FSA guidelines, a borrower should not be refused a loan if they choose not to buy an insurance policy.

I felt like I was not given the correct information when the PPI policy was sold to me, as
-your salesperson stated / implied that taking out the PPI policy would assist my credit application.
-your salesperson was very pushy in selling me the PPI policy so that I felt I could not say no.
-your salesperson did not tell me that the PPI policy was optional.
-your salesperson stated / implied that taking out the PPI policy was essential for me to get the associated credit.
In forcing me to buy this policy, you have also breached paragraph 8.6 of the Banking Code, to which you are a signatory.

You are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in the quoted interest rate, which you did not do.

I do not believe being forced to buy this policy as part of the loan was a fair and reasonable obligation as I did not need this insurance and said at the time of taking the loan that I did not want it.

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.

I look forward to a full and prompt response to this letter and for the matter to be concluded with eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

My previous address when I took out this loan was .



Yours faithfully,