Question re ppi

[grimbell]

Hi

Could someone please tell me what should be done once a reclaim is agreed.

I have a loan that the ppi was added to up front, they agreed a refund then sent a new agreement with a new account number. I didn't sign it as I didn't agree with the figures.

They then sent an explanation which when worked out tallied and I then signed an agreement form, I didn't sign anything else.

Then they sent a letter with new payment terms and another account number. I then queried why another account number but not another agreement. 3 months later they replied that I the new account number was because the origional included the ppi account number but that I don't need another agreement as the origional still stands. The letter also now gives different figures to the ones I agreed to.

I am totally confused now. I want to write to them again about the figures but I also need to know where i stand with the agreeement.

Any help will be much appreciated.

[Paule]

Re: Question re ppi

They cannot put you in a worse postion than you was.
ie payments cant be greater, term cant be extended etc

Ile dig out the reference to this for you

[Paule]

Re: Question re ppi

Here you go..

When you try to cancel your insurance without ending the loan, some lenders make you start a new agreement. They are allowed to do this as long as the new loan is on the same or better terms and does not detriment you in any way, for example it shouldn’t be more expensive or last longer. You should ask for this to be done without making a new search on your credit file.

The FSA says: "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."

[grimbell]

Re: Question re ppi

Thanks.

This is still confusing tho.

Initially they cancelled the ppi and they said they would process a new loan, which they did. They did it as a new customer and did a credit search and sent a letter turning me down for the loan but sent a new agreement anyway!

So according to the above this was wrong.

2 months later they agreed the refund and again the letter stated that they would process a new loan.

3 months later they then said no new agreement as they had put me in the position I would of been in if I had not bought ppi.........this is the correct way then.

The origional loan APR was 8.9% When they finally agreed refund they said they would honour the rate of 5.8% (which iassumed was rate that loan would of been at if no ppi) now they are saying 8.9%

Also I am not sure whether the amount of refund is good or not.
The origional loan states:
ppi £502.74
Total 595.58
This was taken out in Dec 05 over 30 months