i was made redundant and have been unable to repay my bank loan for the past year. i would like to know how i would stand if i were to enquire about reclaiming PPI.
Slide- i do not fully understand your answer, but i have paid ppi on the loan, which was missold to me, and any person in that situation is entitled to their money back. i would just like to know how the bank would react to my request.
Ed Fox- When i applied for the loan, i was told that if i did not opt in to the ppi, then i would face a higher interest rate being applied to the loan, or being refused the loan completely. I have since been advised that this is untrue. Also the amount of ppi, which i think totalled around ?2000, for the 5 year period i would be paying the loan back for, was "lent" to me, which means adding that onto the loan amount i had requested, and then charging me interest on the whole amount in total. When i shopped around, i managed to get ppi with a different company for around ?5 per month. Compared to the ?60 i was paying with the bank. At this point i did opt out of the bank ppi and went with a seperate insurer. Guess what. The interest rate on my loan did not increase after opting out. So therefore i was lied to by the bank.
Also - if you decided to take out insurance on say your car, house etc, you would not expect to be lent the money, and then charged a monthly interest rate on it, would you. so why should the banks do it? if it is as you say legitimate, the why has the FSA ordered all banks to repay any missold ppi?
Slide- i do not fully understand your answer, but i have paid ppi on the loan, which was missold to me, and any person in that situation is entitled to their money back. i would just like to know how the bank would react to my request.
Ed Fox- When i applied for the loan, i was told that if i did not opt in to the ppi, then i would face a higher interest rate being applied to the loan, or being refused the loan completely. I have since been advised that this is untrue. Also the amount of ppi, which i think totalled around ?2000, for the 5 year period i would be paying the loan back for, was "lent" to me, which means adding that onto the loan amount i had requested, and then charging me interest on the whole amount in total. When i shopped around, i managed to get ppi with a different company for around ?5 per month. Compared to the ?60 i was paying with the bank. At this point i did opt out of the bank ppi and went with a seperate insurer. Guess what. The interest rate on my loan did not increase after opting out. So therefore i was lied to by the bank.
Also - if you decided to take out insurance on say your car, house etc, you would not expect to be lent the money, and then charged a monthly interest rate on it, would you. so why should the banks do it? if it is as you say legitimate, the why has the FSA ordered all banks to repay any missold ppi?