Another PPI Question

[Ruby]

I wonder if anyone can answer this question for me. In December 2001 I took out a personal loan with PPI. The terms of the loan meant that they deferred payments for the first two months and then fixed payments for the rest of the duration. The first payment therefore was due to start in February 2002. Just before the first payment was due to come out by direct debit I phoned the bank and cancelled the PPI cover.

A few years ago I challenged the bank for a refund of the PPI however they said that due to the fact that I cancelled the PPI before the first payment was due I am not due a refund.

However, would I be right in saying that the interest rate would have been calculated from the start of the loan therefore although the payments were deferred to two months, I had still technically paid some interest on the PPI?

Incidentally the loan was paid off in February 2004.

[Hurricane Puffrose]

Re: Another PPI Question

BUMP for bill/turbo/di30 <3

[Bill-K]

Re: Another PPI Question

My take on this, Ruby...

It looks like you cancelled the PPI before the first loan repayment was due. Was any PPI then subsequently charged ?

By that, I mean was the original loan agreement re-drafted, or the original loan repayments reduced ?

Were you given any acknowledgement of the PPI cancellation ?

Sorry for the questions, but they are crucial.

Putting it simply, if you cancelled the PPI and were then not charged for it, then I don't think you have a claim, of course. It appears that you may have been charged for PPI - SUBSEQUENT - to your cancellation phone call. If so, then you're gonna need to work out how much.....etc....etc.....etc.....!!!

[Ruby]

Re: Another PPI Question

I had my payments adjusted to less than on the credit agreement due to me cancelling although I did not get any acknowledgment to say the PPI is cancelled however but assumed it was as my payments were reduced. Loan was for £3000 + 920 PPI x 60 months = 107/month (yes VERY high interest rate) then in Feb payments reduced to 82.00/month.

I have written to them stating that the original agreement was worked out with PPI and interest upfront and although the payments were deferred for two months the interest would have commenced from the date of start of loan.

Its probably a long shot and working the monetary value is not that easy either I guess.