Is Single Premium PPI always added to the loan?

[mzfrfd]

Hi

 

Every time I read about Single Premium PPI,

I am always told that most financial institution will add the cost of the policy to the principle loan and pass both amounts to the borrower as said loan as per the credit agreement.

If most do that, what do the others do?

 

I ask as my partner a had Single Premium Policy which was deemed mis-sold

however she never actually received the cost of the premium

ie the premium was not added to the principle loan and deposited in her current account,

 

 

although the cost of the Single Premium was added to the loan account to be repaid, which she did.

I think she was swindled but she says it is not the case.

 

Can anybody advise regarding my question above?

 

Thanks!

[dx100uk]

frontloaded loan PPI is rarely paid to the borrower then taken back

its paid to the insurers at disbursement of the funds

[mzfrfd]

Hi Dx100uk

 

Thanks for replying. Let me try and illustrate better using my partners real loan examples as to why I am confused.

 

Loan 1

Principle Loan: £5,000.00

PPI Single premium: £900.00

Credit deposited to the borrowers current account £5,900.00

Funds credited to loan account for repayment: £5,900.00

 

Loan 2

Principle Loan: £7,000.00

PPI Single premium: £1,010.00

Credit deposited to the borrowers current account.£7000.00

Funds credited to loan account for repayment: £8,010.00

 

Using the examples above the credit deposited to borrowers current account seems £1,010.00 light. Hence my original question. So, my question really is, which one of the approaches above is the usual or correct one?

 

Confused!

 

Any thoughts on the above?

 

thanks

[dx100uk]

no you ret reading it totally wrong.

 

ppi gets paid to the insurers in bulk [upfront] from the loan account

nothing to do with the borrows current account.

 

anyway stop worry about nowt

get that PPI refunded.

but do it properly using the FOS CQ

and the spreadsheets from here.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?318646-PPI-Single-Premium-Your-questions-answered(1-Viewing)-nbsp

 

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

[mzfrfd]

Hi dx100uk

 

I actually read it correctly and have found the error.

 

 

For Loan 1 the bank deposited the £5900 into the current account and the loan account.

However they must have realised they made an error and took £900 back.

It is listed as a 'fee' on my partners bank statement directly under the £5,900.00 deposit.

 

So the example in Loan 2 was indeed the correct approach.

 

Thanks for clarifying things for me.

 

With regard to the PPI, I've already had confirmation of mis-selling of the PPI on both loans and am just awaiting confirmation of the money to be returned after I queried the figures on offer.

 

I've also got confirmation of mis-selling of PPI on my partners credit card also.

 

Total to be returned is £9,350.00 (subject to queries).

 

Thanks again for you help.

 

(PS I used the links you provided also. They are very useful tools)

[dx100uk]

yes we took a longtime in writing that many moons ago.

nice you spotted the mistake they made as it was confusing me too as to what you were relating too.

 

 

dx

[mzfrfd]

Its a shame really. I thought they had swiped some funds illegally and was going to use that as a premise to get my Partners £7.000.00 she clocked up in bank charges returned when she had the account. (1999 - 2009)

 

I'll have to find another way...

 

Hey ho!