Egg Loan PPI

[turnedworm]

I have a query regarding an Egg loan I have. I took out an Egg loan a couple of years ago and about 18months into the 60 month term I went into default - due to major business problems.

 

The debt has been bounced around a couple of different Collection Agencies - I am currently paying off £75 per month.

 

When I took out the loan I foolishly took out PPI cover. This was c.£700 and this was added to the principle loan. Five months ago I wrote to Egg suggesting that because I was only 18 months into a 60 month arrangement I felt that some of the PPI sum should be credited to the account. They wrote back (late!) saying that they would offset c.£40 because "the PPI policy is weighted to the early part of the 60 month term because it is the time of highest risk."

 

They also suggested I should write to the Financial Ombudsman if I was unhappy with their ruling. Is this the best way to go?

 

If any of you have any other suggestion they would be greatfully received!

 

Many thanks - Hugh

[pompeyfaith]

Firstly you need to check if it was in anyway mis-sold there is very good info here to do that if it was mis-sold send a S.A.R to egg to get all the info on the LOAN and PPI.

 

To complain to the FOS go here

Financial Ombudsman Service

 

The complaint form you will need is here

 

our complaints procedure and how to complain

 

The chances are it was mis-sold as most were if that is the case claim it all back with interest.

 

Regards

 

Leon

[turnedworm]

Many thanks for the quick reply! I actually have the original loan forms if that helps.

 

The terms, from memory, stated that I wasn't covered for unemployment as I was / am self employed.

 

Many thanks for the FOS link!