Halifax PPI Loan Claim Advice

[Martin.R]

Hi all,

I have put 2 claims in with the Halifax for unsecured loans.
I am curious if these are front loaded and if I stand a chance of success.

Loan 1
Cash Loan: £10,000
Total charge for credit for cash loan: £2,606
Amount I pay for cash loan: £12,606
Insurance loan £1,926.14
Total charge for credit for insurance loan: £502.06
Amount I pay for insurance loan: £2,428.20

60 payments at £250.57

Loan 2
Cash Loan: £20,000
Total charge for credit for cash loan: £6,239.92
Amount I pay for cash loan: £26,239.92
Insurance loan £4,996.11
Total charge for credit for insurance loan: £1,476.09
Amount I pay for insurance loan: £6,472.20

84 payments at £389.43

Both loans have this below the financial bit:
"We will use the insurance loan to pay the provider of Personal Loan Repayment Insurance"

Loan 1 was taken out June 2001, loan 2 was taken out in May 2003.
Loan 2 payed of loan 1 and some credit cards (With PPI on them also).
Loan 2 was payed off in 2009 with some inheritance I got.

My complaint is I felt confused in the branch by the pushy sales person and was not sure about what the cover was for or if I had other options.
I was in employment which had longer sickness cover than standard and I had some savings.

Do I have a good chance with my complaints?

Thanks in advance.

[Bill-K]

Re: Halifax PPI Loan Claim Advice

Hi Martin, and welcome to you. Yes, those definitely appear to be front-loaded PPI loans (or 'SPI' loans). I would say you have a good chance, but the lenders have been digging their heels in lately, and you may have to be persistent with them. They often now just send a single 'fob-off' letter, and they suggest you go straight to the FOS - knowing that this will probably take many months to settle.

I have attached a 'SPI' spreadsheet which you might find helpful in calculating the loan PPI claim. The second loan may be complicated by the consolidation of the first loan and the credit card(s). Ideally, you would need to complete calculations for the first loan and credit cards, and THEN tackle the second - consolidation - loan.

The second spreadsheet attached is for credit card PPI claims. I hope I've helped.

[Martin.R]

Re: Halifax PPI Loan Claim Advice

Hi Martin, and welcome to you. Yes, those definitely appear to be front-loaded PPI loans (or 'SPI' loans). I would say you have a good chance, but the lenders have been digging their heels in lately, and you may have to be persistent with them. They often now just send a single 'fob-off' letter, and they suggest you go straight to the FOS - knowing that this will probably take many months to settle.

I have attached a 'SPI' spreadsheet which you might find helpful in calculating the loan PPI claim. The second loan may be complicated by the consolidation of the first loan and the credit card(s). Ideally, you would need to complete calculations for the first loan and credit cards, and THEN tackle the second - consolidation - loan.

The second spreadsheet attached is for credit card PPI claims. I hope I've helped.

Hi,

Thanks for your swift reply.
I am curious as to why the second loan may be complicated due to the consolidation?
Are you referring to complicated to calculate the PPI or the claim itself?

As both were payed off in full would I not be entitled to the amount I payed for the insurance loan plus the interest they charged me as this is the PPI?
Why would what the loan was used for affect anything?

I am new to this so please excuse my in-experience

Thank again,
Martin.

[Bill-K]

Re: Halifax PPI Loan Claim Advice

LOL - I was hoping you might not ask that, Martin !!!

When the first loan was settled, the settlement amount contained an element of PPI (approx. 16%). This was then carried forward to the second loan, and was included in the loan amount. Similarly, the balances of the credit cards contained an element of PPI (which had built up over time) - and this was carried into the second loan. This element of PPI has to be added to the PPI premium being charged on the second loan amount. Unless the lender can show that this had already been done (which I consider to be very unlikely), then the total PPI on the second loan will be more than the £4996.11 shown in post #1, as it will include the carried forward PPI. Turboman has written some very good explanations of this here:-

http://www.legalbeagles.info/forums/...I-Calculations

Some lenders will often 'accidentally' ignore this aspect of the PPI calculation - so it's worth checking.

[Bill-K]

Re: Halifax PPI Loan Claim Advice

Duplicate post deleted.

[Martin.R]

Re: Halifax PPI Loan Claim Advice

LOL - I was hoping you might not ask that, Martin !!!

When the first loan was settled, the settlement amount contained an element of PPI (approx. 16%). This was then carried forward to the second loan, and was included in the loan amount. Similarly, the balances of the credit cards contained an element of PPI (which had built up over time) - and this was carried into the second loan. This element of PPI has to be added to the PPI premium being charged on the second loan amount. Unless the lender can show that this had already been done (which I consider to be very unlikely), then the total PPI on the second loan will be more than the £4996.11 shown in post #1, as it will include the carried forward PPI. Turboman has written some very good explanations of this here:-

http://www.legalbeagles.info/forums/...I-Calculations

Some lenders will often 'accidentally' ignore this aspect of the PPI calculation - so it's worth checking.

Thanks again for your swift reply.

I sent my claim a few weeks ago and have had a phone call just confirming the details.
I did send the FOS questionnaire with my claim, although not asked for I though it would save time if they waited weeks then asked for it.

I will wait and see what decision I get... then I may be back

Thanks again,
Martin.