unlawful loan PPI interest .. ?

[robert_harper_2000]

I have just successfully challenged HSBC on loan PPI and won! well they settled for my figure. I am taking on Sainsburys next.

 

I have been spending a lot of time investigating these cases and have come across an idea...

 

Loan insurance is a product - why then do we pay interest on this?

We aren't given the option to pay for the product in total - not possible to pay £700 rather than £500 PPI + £200 interest.

 

If I have insurance on my fridge they don't charge £5 a month plus £2 interest - it is a product they sell and as such why is interest listed seperately?

 

I put it to the banks this is an unlawful interest charge and should be refunded for all.

 

You aren't offered the option to pay for the insurance in total up front only to pay in installments with interest added - it should be £700 divided by payments not listed as different things.

 

What's everyones views? Has this been covered?

[lookinforinfo]

Interesting. I had not thought of looking at it that way. Thank goodness they don't

treat mortgage protection in that manner!

When you said you successfully challenged HSBC on PPI, were you referring to

the whole amount, or just challenging the interest?

[blueskies]

Interest is listed separately because the whole premium for the insurance is taken at the beginning of the contract and they then extend the loan to cover the additional cost, therefore you pay interest on the lump sum premium. Many loan companies use a seperate company for PPI (although in many cases the company used is owned by the same company that offers the loan), so they can show that they need to pay the premium at the beginning.

[robert_harper_2000]

I have and am currently challenging whole insurance and interest - won one and will fight the other!

 

I still think anyone could fight the interest as it is sold with the option of paying the insurance at the start only with interest.