Thread: Advice Needed

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

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

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