Policy not appropriate

[astraldream]

Good Evening,

I wonder if someone can help me. I had payment protection insurance with my mortgage, both provided by Lloyds Bank - something which I wanted, have used and which was not mis-sold. When I paid off my mortgage (early) about 8 years ago, I contacted Lloyds to discuss my PPI. I was informed that whilst I could cancel my PPI, it would still be valid despite not having a mortgage and would provide me with an amount of money (equivalent to my previous mortgage payments) in the event that I was ill. Several years after I cancelled my mortgage, during a period of illness, I made a claim to the PPI company and was paid out £400.
I have recently had a letter from the PPI company to inform me that the PPI insurance is not valid, and has never been since the cancellation of my mortgage 8 years. I have been paying about £35/month (I estimate about £3200 in total) since the cancellation of my mortgage and have received £400 in benefit for the insurance. If the policy was not valid at any point since the cancellation of the mortgage, might I be able to claim that I was misled by the insurance company in continuing the policy and that the payment was paid out to me in error, and attempt to claim back the balance if what is owed?

Thanks in advance for any advice and any guidance to the appropriate wording would be much appreciated.

Astraldream

[di30]

Re: Policy not appropriate

Hi there

I would personally write to them, provide them a copy of the letter/information about the policy not being valid as from so and so date, and request if this is the case you have wasted your money by paying for something that you would not any longer from the cancellation date make a successful claim for unemployment-sickness etc.
Give them as many details as possible, and make sure you provide the information as you have in your post. Such as you were made to believe that you were still covered for the policy .......

Keep the letter simple, and ask them to refund the premiums you paid, plus all relevant interest.:santa_smiley:

[astraldream]

Re: Policy not appropriate

Thanks for the reply.
Do you have any suggestions on what to write? Specific terms or phrases? Or template letters?

Thanks again

[Hurricane Puffrose]

Re: Policy not appropriate

bumped. :santa_smiley:

[di30]

Re: Policy not appropriate

Hiya, sorry for the delay in responding.

There is no actual template letter as such for this, but good wording will help. I would keep it simple really.

I will try to get round to thinking of working around this one over the next day or 2, or if one of the other lovely guy's have 5 mins, maybe they will come up with something as well x

[Bill-K]

Re: Policy not appropriate

Is summat like this worth a go ?
" Dear XXXX
Thank you for your letter of xx/xx/xx (ref: xxxx), explaining that my PPI policy No. xxxx became invalid upon settlement of my mortgage approximately 8 years ago. This was not made clear to me at the time, and I have been paying the premiums on this policy since that date - under the impression that the policy was still valid and operational, until receipt of your letter.

I believe that - under the FSA rules - this insurance has been technically mis-sold, as it became unfit for its purpose. Please, therefore, would you arrange for the return of the premiums paid on this insurance, along with any interest charged, and with compensatory interest at the Statutory Rate of 8%.

I look forward to your early response.

Yours sincerely "

[Bill-K]

Re: Policy not appropriate

Also - this might help, AD. I've done an approximate calculation here, based on £35 per month over 8 years (96 months X £35). This comes to £3360, but you should also be entitled to 8% compensatory interest, and this comes to approx. £1087, making the total approx. £4447 - increasing by £0.74 each day until settlement. I've attached the spreadsheet I used. If you enter more correct dates and amounts, it will be more accurate.

[di30]

Re: Policy not appropriate

Excellent, good one Bill x :santa_smiley: