Payment Protection Insurance

[JamesBooker]

Now I've sorted out my overdraft charges I've been looking into £1000 Payment Protection Insurance that was added to a loan I took out in 2003. They never told me about this when I signed for the loan in the branch (apparently by law you have to sign seperately for it now) and when I phoned up to complain they told me the PPI was compulsary and that I wouldn't have been given the loan without it.

 

I now know that's all wrong so at the least I'm going to get the loan cancelled and restarted minus the insurance. At the best I hope to get the insurance I've paid refunded as well or even the loan written off as it was mis-sold.

 

Does any one have any experience of removing PPI from a loan?

[Bookworm]

Strictly speaking, this isn't to do with bank charges, but I'll give you my opinion anyway.

 

When you take a loan or sign a credit agreement, you are responsible for reading the contract carefully. What's more, you have 14 days by law to cancel the total agreement if on reflection, you're not happy with the terms. If you go against the bank, it will be their words against yours as to whether you were informed of the PPI at the time, and since you signed... Besides, when you signed, the contract would have shown a breakdown of the charges, interest, etc... Again, that would weigh against you.

 

As to whether you'll get the loan cancelled and restarted, dream on. You have the following choices:

1 - You can apply to the bank for a new loan to pay off this one, and try aplying without the PPI, see if you get accepted (I personally woudn't, but that's me).

2 - You can cancel the PPI in writing. But you need to check the contract you signed first to see if it was indeed a condition of the loan that PPI be taken. If there is nothing in writing, then cancel. It may be a condition of the loan that you have PPI, just not necessarily with them (mortgages, for example, demand that you have adequate house insurance, but it doesn't have to be with them) in which case you can get yourself cheaper PPI elsewhere. If it is a condition of the loan that you have PPI, the lender is in their right to check that you have adequate protection before cancelling their cover.

 

Finally, as to whether you can get the insurance reimbursed or the loan written off, dream on some more. The fact that you didn't need to claim on the PPI up to now is irrelevant, the fact is you had that insurance, the service was provided for you, and let's face it, if you had become unemployed, you would have had no hesitation of using the insurance, even if you got it in error. The service is deemed to have been provided, and that's that. As for the loan written off, how on earth do you think this could happen? You asked for a loan, you got the loan, you spent the money, you have to repay the money, that's it. The fact that you allegedly were mis-sold an insurance policy with it has nothing to do with it!

[JamesBooker]

Thanks for your input, I definitely hope to at least get it cancelled for the remainder of the policy as I plan to settle the full amount with them soon. Also I never dreamt I'd receive £1100 pounds worth of bank charges back so you'll have to excuse my optimism

 

 

edit:

 

There's an interesting and helpful thread about this on MoneySavingExpert.com called 'Cancelling PPI can be Done!!'

[Nightmare4banks]

Hello all!

 

By the way,this is an excellent web site!

 

I have had 2 cases over the years with Payment Protection and have succeeded in getting my money back/convinced Ombudsman about my case.

 

In the first case,the PPI was being charged to me on a store card.

When I fell ill and could not make the repayments I requested to have the PPI cover my monthly card payments.

This was declined so I complained internally and got nowhere.Then I complained to the Insurance Ombudsman at the time (around 10 years ago) and received the Payment Protection monthly amounts x 4 1/2 years plus interest backdated = just under £600.This was offset against the balance owed on the card.

 

What made me so angry was that the card company put on my credit file late payments.In the end they had to remove them once I received the refund.

 

The second case is being currently dealt with by the Ombudsman but the lending company(credit card) has agreed to refund some of the instalments plus interest.I will let everyone know the final outcome which should be very soon.

 

I should mention one thing that I have managed to get refunds mainly because I am self-employed and have been so for many years.Also,certain parts of the cover were unsuitable for me.

 

I hope anyone in a similar situation finds this information useful.

[richardc]

Yes. Being or becoming self-employed is one getout. However you may not get the loan in the first place if you are self-employed.

[JamesBooker]

I'm happy to report that after persevering with my bank and ignoring their initial refusal (and the sceptical reply here!) I have had the PPI taken off my loan and all the charges + interest refunded

 

I've been quite disappointed by the attitude towards Payment Protection Insurance on the Bank Action Group. PPI is arguably as big a scandal as penalty charges and yet when it's raised by members they often get a 'tough-shit' reply. If we are 'campaigning for fairer banking' then I believe we should start helping people who've been ripped off by unfair PPI and I'll be the first to do so.

[Nightmare4banks]

Hi all!

 

To begin with,

 

Well done James!

 

 

I totally 1000%+ agree with you that PPI is an absolute scandal.

 

The main problem is that it is either completely unsuitable or it is rigged with so many get out clauses that it is rendered utterly useless!

 

I am currently challenging the PPI on several loan accounts - it is being investigated.

 

My argument is that if it does not provide cover as per written in the documentation,the monthly instalments have been obtained from me by misrepresenting the facts and which has also increased my indebtness which could have been avoided.

 

I have used this argument in order to receive refunds.

 

At the end of the day,there are two options:

 

1.Cover if and when needed.

 

or

 

2.In the event of failure to obtain cover regardless of reasons, a refund and in most cases the instalments should have interest also refunded.

 

I ALWAYS ask the finance/insurance company the following question:

 

After all would anyone pay for something utterly useless and of absolute no use to him/her?

 

The reply at the other end is over the phone shock and silence!

 

and in writing a load of rubbish regarding terms & conditions and avoiding the main issue-selling worthless policies etc.

 

ANYWAY,

 

This is my policy:

 

NEVER GIVE UP!

[lookinforinfo]

Some time ago I got a bank loan with PPI, which I didn't want, but could

not get a loan without it. This was despite the fact that I was self employed and they knew that when dictating their conditions.

Who can I complain to in order to cancel the exorbitant PPI charges.

[richardc]

Your bank. This topic has been discussed several times in various fora. If you use the search you should be able to find the posts.

[JamesBooker]

Sounds like you've got good grounds for a refund. As you probably now know PPI should always be optional and often provides no cover for the self-employed.

 

Try sending this letter to the cusomer services department of your bank:

 

http://boards.fool.co.uk/Message.asp?mid=9659780

 

They will try and fob you off at least a few times, keep at them and you should be successful in the end. Feel free to post back here if you have any more questions.

 

Good luck

[lookinforinfo]

Thankyou to both previous posters for your info.I will let you know what

happens.

[gingerfurball]

Can you please tell me why the cover is of now use if you are self employed. I'm in the process of cancelling PPI on a loan. My husband is (and was at the time of taking out the loan) self employed. I would like some ammunition to contact these people regarding a mis selling of the PPI.

[jamesbond]

the reason self employment is a getout clause is because the vast majority of these ppi schemes will not cover you if you are self employed..if the bank new you were self employed on taking out the ppi this is totally unacceptable as none of the cover will apply.ppi has been investigated big time by the cab and major reports condemming its forced sale and over priced cover being pushed onto customers to increase profits for the banks, are put down severly.this is an area which is going to cause a lot of probs for the bank and there are already companies out there who will take your case to reclaim these dubious insurance costs on your behalf , but whom tend to take half your winnings as their costs.he terms and conditions referred to in an earlier thread by bookworm are very open to challange as many of the banks did not prior to a couple of years back outline the cover you would receive and ascertain if the cover was suitable for you.they will say no but persevere as with the bank charges, and if you have been misold the policy go for em...good luck...007

[JamesBooker]

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