Advice on Cancelling PPI.

[nicho1120]

I wonder if somebody could help me. I have a secured loan for £15,000.I am currently paying £35 each month for PPI. I have read the agreement and there is nothing in there with regards to cancelling PPI. Should I just write to them and say I want to cancel it or should I go down the mis-sold route. I did tick the box to say that I wanted it and signed but they said that I would need this with the loan amount being so high.

[reidnet]

Hi Nicho,

What you are saying is that you were told that if you did not take out PPI you would not get the loan ?, As we now know they cannot make PPI a condition of taking out a loan. Just a few things that need cleared before you start on a claim.

 

There are two main types of PPI Policy and we need to find out what type of policy you were initially sold.

 

1. Single premium policy - where a lump sum is added onto your original loan to purchase a policy that normally only covers you for 5 years, this of course increases your actual loan and of course you also pay interest on the Policy cost over the whole term of your loan. These policies are the biggest of the rip off policies on the go.

 

2. Seperate Policy where an amout is paid each month, though this will still be paid along with your loan agreement this type of policy is easier to cancel and carries less financial penalties.

 

Which company do you have your loan with ?

 

If you do not have copies of all the original paperwork etc I would recommend that you submit a S.A.R - (Subject Access Request) under the Data Protection Act to obtain all copies of agreements etc, and remember to ask for transcripts / Audio Recordings of any telephone conversations that took place at the time of arranging your loan.

 

Tonight with Trevor McDonald are screening a program about Payment Protection Insurance on Friday 12th January 2007 at 8pm on ITV.

 

If you need any questions answered please do not hesitate to shout in here or PM me and If I can help I will.

 

Good Luck

 

Ian

[nicho1120]

Cheers redinet.

 

I would be misleading you if i said that if i didnt have ppi i wouldnt get the loan. They strongly recommended that i should have the PPI as the loan was quite a large amount and was also secured against the house.Be naive i said yes. I have looked at the original agreement and this is what it says:-

 

LPPI loan £2528. 132 instalments of £34.58 APR 12.7%.

 

It then says other financial information and states that the interest will be £2036.56 The LPPI premium is equal to the amount of the LPPI loan

 

Where I have signed it says. I wish to purchase the Single plus loan payment protection insurance premium. I understand that I am purchasing the product ticked above on credit provided by you and that the terms relating to the credit for the products can be found in the terms in this agreement. (it doesnt state anywhere in the terms about cancelling this)

 

What should I do???

[reidnet]

Hi,

One thing here that you need to very careful about, is to check the terms and conditions of the PPI policy that they have sold you. As your loan is over 11 Years I pressume that you expect the PPI to cover you for the full 11 year period?. From my Experience of what is called Single Premium PPI is that these policies normally only cover up to 5 years, and you have to purchase another Policy after that period to continue the cover. I may be wrong about it only covering you for 5 yrs but Please as a matter of Urgency check your policy. If I am correct and you are only covered for 5 years you of may then have a case for being Mis Sold the product. If you cannot find this in your policy I would suggest that you contact the lender and have them confirm how long the PPI policy covers you for.

 

I was charged £3388 for one of these policies on a 15yr loan, I did a calculation and to maintain the cover for the whole loan period plus the interest paid on these policies would have cost me in total around £18,000.00. Needless to say I settled the loan early and am now about to head to court with my claim for mis sold PPI policy.

 

If you try and cancel Just the PPI, they will tell you that the only way that they can do this is to clear your excisting loan by way of financing it with another loan from them without PPI. Again here they will be awkward, and probably tell you that you wont get such a good interest rate without the PPI etc etc. If they force the Issue of PPI simply state that you can get the same level of PPI cover from an Independant provider for a tenth of the cost that they quote you.

 

They make it sound like the PPI that they sell you is for your own Protection, B*&^*CKS.. It is to cover themselves and also to provide the seller with a nice little Bonus by way of commision paid to them on the sale of the PPI. The FSA reported recently that Commision paid on PPI policies was the highest rate paid out of any Insurance policies with commisions rates as high as 65% in some cases. With commision rates so high it is no wonder that there is so much High pressure selling and mis selling of PPI.

 

Regards

 

Ian

[nicho1120]

Cheers Reidnet. The advice you have given me is very much appreciated. I will write to them today and ask them to provide details with regards to how long the PPI cover is for .I have looked in the terms and it doesnt state any time period. I will get back to you when I get some information back.

[reidnet]

Glad to be of Help, I am only doing what others have done to help me in the past on other matters.

 

Good luck and keep your chin up..lol

 

Ian

[kippy2]

Glad to be of Help, I am only doing what others have done to help me in the past on other matters.

 

Good luck and keep your chin up..lol

 

Ian

 

 

great stuff on programme tonight!!!! :D brilliant :D