SPPL ppi

[meellis]

I don't know if any body can help but I am having difficulties with working out how much was paid and ppi claims company are confusing me even more. My original loan was for £30,000, ppi was £2992.41 giving a total loan of £32,992.41 and was taken out on 26/04/06. I paid this loan off with another from Swift and the redemption statement states current balance £34,828.13, early repayment and deeds release charge £150, early repayment charge £2,089.38, interest £339.07, and uncleared payments £601.42 leaving total redemption figure of £38008.00. Under the part of the statement where it is supposed to list about insurance it says read notes. Notes state under the heading of PPI- If you have arranged payment protection with SPPL, then this will continue following repayment. Please write to us if you no longer require this insurance. I have never written to cancel so am I right in assuming that the policy would have been paid in full on redemption and would have still been running for 5 years. The claims company have told me that I would have only made approximately £500 in payments so the offer from the broker of £2500 is good but I say that the agreement reads to me as though I paid for a 5 year policy. Any ideas or help would be appreciated.

[Bill-K]

Re: SPPL ppi

Hi Meelis,

From what I can see, you had a standard Single-Premium PPI policy with this loan. Such policies normally only provide cover for a few years - typically 5 - but because the Single-Premium was part of the original loan, then you still continue paying for this until the loan is settled or consolidated. Even though the cover no longer exists after the policy cover term, which appears to have been 5 years in this case.

So - if I read your post correctly, the option to cancel the insurance is only effective during the first 5 years of the ORIGINAL loan on which the insurance was taken out. Cover expired after 5 years, so it would have been effectively self-cancelling at the 5-year point.

What DOES happen, though, is that the loan advance of the PPI Premium you paid forms a portion of every repayment you make on that loan. Therefore, if you settle or consolidate the loan, then the loan settlement figure ALSO includes a portion of that PPI - so, if you consolidated into another loan, then this PPI is effectively 'carried forward' into the next loan.

Turboman has some excellent threads explaining this here:-

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

Have a read of his explanations, and then use the SPI spreadsheet to see if you appear to be entitled to more than you have been offered.

Where loans are consolidated, the claim should usually be considered as a claim involving ALL loans in the consolidation sequence. This is because - even if subsequent loans did not have PPI taken out on them - the 'carry-forward' of PPI upon consolidation means that they still contained an element of PPI.

[meellis]

Re: SPPL ppi

Thanks for your reply it sounds as though I am reading it right then. By the spreadsheet it calculates £3,442 if I have inserted the right figures so I have to decide whether to go on. The case is at the ombudsman but the claims company say this could take 3 years and might end up with a smaller settlement. I think the claims company want me to settle quickly so they can get paid so are not interested in what is correct. They said that because I only made £500 in payments they reckon the broker has made a mistake offering me £2500 but I really think he knows he is looking at more especially with an ombudsman bill on top which is why he made the offer.