Claim witheld re Igroup/gemoney and Loans.co.uk

[Lady never again]

Hi Guys - received a letter from Loans.co.uk saying that I had been possibly mis sold a ppi policy on my mortgage - originally through igroup and then gemoney. I completed the form returned it and have been told that it has been upheld and that they are calculating the settlement. I raked through some old documentation and fund the 5 year term policy which was paid in a single premium back in 2006- now I am still paying my mortgage still got 10 years to run- I can remember that it seemed my mortgage was a lot higher in the first couple of years but I cant remember any specific ppi repayment being paid monthly - So do you think that I have repaid all of the single premium in the first fe years or would that premium of 4400 been spread over the whole life of the mortgage which would mean Im still paying it even though it was only for the first 5 years. I actually rang the Wessex group who checked and said it was paid in one lump at the beginning of my loan - just wondered if you had heard of this before

[maroondevo52]

Hi,

 

This is the FOS take on single premium policies ...

 

In many cases, the PPI premium is often charged up-front in one lump sum – called a“single premium” – that is added to the loan. So the monthly payments the consumer makes towards the costs of the insurance aren’t actually insurance premiums – they’re additional loan repayments (and interest).

 

This means that consumers can’t just stop paying for the PPI. Instead, they have to get a refund – which may be refused, or be for an amount the consumer thinks is too low.

 

Many consumers argue that these arrangements are unfair – especially if the loan is paid off early as part of a plan to restructure (or consolidate) debts when they are in financial hardship. In these circumstances, we look at the individual facts of the case – particularly that the consumer was told when they bought the PPI.

 

If we decide that the business explained clearly how the policy works, we will probably only look at whether the refund has been calculated fairly.

[Lady never again]

So if Loans .Co Uk have admitted to me that they believe my claim is upheld - It was never explained to me at all - in fact I didnt know that this was what it was until they contacted me- then how do the y calculate what I might be owed . Is it them that repay me.