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marshy

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  1. I've enquired about reclaiming for all my ppi payments to lloyds tsb and now im having to write a letter to the financial ombudsman service as lloyds have rejected the claim. What i would like to know though is, is it fair that i stll have to continue basically paying for the ppi although i no longer have it? Here's my info to try and make it easier for me to explain. I took out the loan in 2007 and the ppi was added to the loan to make a total loan payment of £203.77 The total £203.77 is a combined total of the cash loan and ppi. £161.61 for the PPI and £42.13 for the PPI. If i cancel the PPI, my monthly repayments just for the loan will be £190.23 . This means that im still paying £28.62 for the PPI although its of no use to me. On my loan agreement there are PPi rebate examples of how much i'd get if i cancel it half way through the loan, which says i get roughly £300-350 rebate. I didnt take much notice of this when i took out the loan because it says this in the terms and conditions "If you decide to cancel the LPI policy the LPI loan will also be cancelled. The cash loan will continue and we will collect only the monthly repayment of the cash loan". To me this is saying that i will only continue paying the £161.61. I was happy with this paragraph in the terms and conditions which is why i didnt cancel the PPI policy within the 30 days. Now is this fair of them to continue charging me £28.62 for the PPI? As far as im concerned i dont find it fair because if i was told of this at the beginning of the loan i wouldnt of taken the ppi out. For that reason i believe i have been mis sold the PPI and i also was not made aware of the full facts at the time of taking out the loan. It clearly states in their own terms and conditions that i can continue paying only the cash loan payment. Doesnt this mean that Lloyds are in breach of the contract? I've looked here and this is simular to my problem http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/180764-canceling-lpi-lloyds-loan-2.html What are my chances of winning this case? Hopefully there is an active member here who had been in the same situation.
  2. I took out a loan in June 2007 for £7500 for 60 months and on my agreement the amounts are as follows. CASH LOAN LOAN PROTECTION INSURANCE TOTAL LOAN Loan amount £7500.00 £1954.76 £9454.76 Monthly Repayment £161.64 £42.13 £203.77 Number of payments 60 60 60 Total Amount Payable £9698.40 £2527.80 £12226.20 APR 11.10% 11.10% This is exactly how it is on the loan agreement i have. The reason im writing this is that i wanted to cancel the loan protection but continue paying the loan. So i was expecting to pay about £42.13 (less the interest) less a month but if i do cancel it only £15 comes off. So i'll still be paying £188.77 a month. I asked why the full amount wont be taken off and they said its because the PPI is 'front loaded' and because im half way through the loan term (30 payments of 60) i've actually paid more off the loan insurance than what i have off the loan. Now im not the brightest bulb but i was assuming that with each payment i make of £203.77, £161.64 will come off the loan and interest which as you can see is £9698.40. And then the remaining £42.13 will come off the PPI and interest which is £2527.80. They say the reason why they cant take the full amount of PPI off is because to cancel the PPi they will have to restructure the loan therefore basically taking out another one to pay this one off (or something along those lines). Therefore leaving me with £188.77 a month rather than i origion loan amount which is £161.64. Now this front loaded insurance wasnt explained out to me when i took out the loan. I took it out online through the Lloyds personal banking site and im positive it said nothing like that. To settle my loan i owe £5441.99 including the interest with a settlement fee of £91.64 and a PPI rebate of £335.93 so it'll cost me £5177.70 to close it. Is there any way i could get them to reduce the PPI by the full amount that they're charging me? So for instance if they're charging me £40 a month for PPi can i get them to take the £40 off the £203.77? Ideally i'd like it written off but thats not going to happen is it lol. Any help would be great, thanks
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