Preliminary & LBA

[Turboman]

I would reccommend that the Prelim & LBA should include the following for active loans

If you cannot justify this to my satisfaction I request a full refund of all premiums paid to date as well as interest on these payments, payable in the form of a cheque.
Additionally, I require the overall loan to be configured as if PPI had never been included, this entails writing off the balance of the PPI Loan, leaving only the balance of the Cash Loan, with a resulting decrease in the monthly payment.

Turbo

[natweststaffmember]

Re: Preliminary & LBA

I would reccommend that the Prelim & LBA should include the following for active loans

If you cannot justify this to my satisfaction I request a full refund of all premiums paid to date as well as interest on these payments, payable in the form of a cheque.
Additionally, I require the overall loan to be configured as if PPI had never been included, this entails writing off the balance of the PPI Loan, leaving only the balance of the Cash Loan, with a resulting decrease in the monthly payment.

Turbo

Just to be clear, banks CAN do this ie recalculate loan and interest and open new loan and write off the outstanding amount but the question is whether you want to do that or not.

[Turboman]

Re: Preliminary & LBA

Just to be clear, banks CAN do this ie recalculate loan and interest and open new loan and write off the outstanding amount but the question is whether you want to do that or not.

Nattie

With PPI its the norm -- otherwise you keep paying the PPI balance + interest over the remaining term. Very often, the lender just amends the balance & mthly payment.
One or two at the moment, are trying it on with new agreements at an increased % to try & make up the deficit in income.
see here-
PPI Reclaiming successes and failures - Page 149 - MoneySavingExpert.com Forums
post 2973

Obviously, these are being challenged.

[natweststaffmember]

Re: Preliminary & LBA

Nattie

With PPI its the norm -- otherwise you keep paying the PPI balance + interest over the remaining term. Very often, the lender just amends the balance & mthly payment.
One or two at the moment, are trying it on with new agreements at an increased % to try & make up the deficit in income.
see here-
PPI Reclaiming successes and failures - Page 149 - MoneySavingExpert.com Forums
post 2973

Obviously, these are being challenged.

Not sure if my post was misread but say a lender gives you a loan at say 10% with PPI. Normally when you cancel it the payment will go down but not to the level as the agreement would show without PPI. What I am saying is that lenders can Redo the loan at the same % ie 10% and write off any interest ie the loan amount without PPI to the loan amount that never had PPI(does that make sense?)

[Turboman]

Re: Preliminary & LBA

Not sure if my post was misread but say a lender gives you a loan at say 10% with PPI. Normally when you cancel it the payment will go down but not to the level as the agreement would show without PPI. What I am saying is that lenders can Redo the loan at the same % ie 10% and write off any interest ie the loan amount without PPI to the loan amount that never had PPI(does that make sense?)

Nattie

I've dealt with a few cases via FOS-& the loan goes back to the same pymnt as the Cash Loan originally

see here: from one of my posts with how it usually works

It seems in earlier posts that FP are trying to force you down the path of "cancellation" with a derisory offer & you still pay the rest over the full term-as has been posted in your replies.

Now lets just assume that you were to be successful in a mis-selling claim at (say) 30/3/2009 after making 27 monthly payments-- here's the situation-assuming that your payments and interest rate remained constant--as each lender calculstes interest slightly different, the figures are rough-but near enough.

As at 30/3/2009

Overall Loan of £27,583 over 120 months @ 8.9% from 7/12/2006 @ £240.14 per mth


Balance of TOTAL loans outstanding = £26,289

Cash Loan of £23,000 over 120 months @ 8.9% from 7/12/2006 @ £200.09 per mth


Balance of Cash Loan outstanding = £21,926

PPi SPI Loan of £4,583 over 120 months @ 8.9% from 7/12/2006 @ £40.05 per mth


Balance of PPI SPI Loan outstanding = £4,363
Total monthly paymnts made (27) = £1,081

__________________________________________________ ________

SO I would expect if successfully claimed and position put back as if PPI had never been applied

1)-You receive a cheque for £1,081 + 8% of £100 = £1,181
2)-The balance of the PPI loan of £4,363 is written off the overall loan
3)-Leaving a Cash Loan balance of £21,926
4)-Your monthly premium reverts back to £200.09

If the total monthly payment now paying has increased-then calculate the Cash Loan mthly pymnt by just taking 83.38% of the present premium (ie-ratio of 23,000/27,583)

Be sure to post up any further figures you receive

[Paule]

Re: Preliminary & LBA

The letters do state:

In respect of cancellation of a policy may I draw your attention to the following reports from the FSA, namely, 'The sale of payment protection insurance - results of thematic work, November 2005' & 'The Sale of Payment Protection Insurance - results of follow-up thematic work, October 2006'' that state "When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan.". This means that any new loan is on the same or better terms and does not detriment me in any way and that this is to be done without making a new search on my credit file

[Turboman]

Re: Preliminary & LBA

Aha-Nattie

I think your post no 4 re revised mthly payment refers to CANCELLATION

I was referring to Mis-Selling Claims

[Rambo]

Re: Preliminary & LBA

The letters do state:

Aha-Nattie

I think your post no 4 re revised mthly payment refers to CANCELLATION

I was referring to Mis-Selling Claims

Please remember, as Turbo says..................Cancellation and Refund are two entirely different things and more importantly different out-comes.

Never cancel a SPI.

[Amethyst]

Re: Preliminary & LBA

I would reccommend that the Prelim & LBA should include the following for active loans

If you cannot justify this to my satisfaction I request a full refund of all premiums paid to date as well as interest on these payments, payable in the form of a cheque.
Additionally, I require the overall loan to be configured as if PPI had never been included, this entails writing off the balance of the PPI Loan, leaving only the balance of the Cash Loan, with a resulting decrease in the monthly payment.

Turbo

I would agree with this being included in PPI claims on current loans.

[Rambo]

Re: Preliminary & LBA

As we all know, most of these claims end up at the door of the FOS.

It would be a good idea to include some general comments about the T/Cs in your Pre-lim / LBA. In FOS terms the T/Cs are a biggy.

[Turboman]

Re: Preliminary & LBA

Bloody Hell Rambo ( S---E) (T-X----) you here as well !!--lol

[Maxie Girl]

Re: Preliminary & LBA

There's nowhere left to hide Turbs..lol

[TANZARELLI]

Re: Preliminary & LBA

Nowhere lol