Help with wrong advice given on ppi insurance

[Lassie69]

Hi, sorry to trouble everyone.

I was made redundant in August 2008, my loan was taken out February 2007 and when I was sold the loan being a single parent with a daughter I decided it was better to be safe rather than sorry and to have PPI insurance on my loan so it would cover me for unforeseen eventualities such as illness, death or sickness. I went to my bank in my lunch hour to sort the loan out and already had a pre existing loan with them which was either 5 or 7 years term with monthly payments of around £260.00 per month but I had decided I wanted to shorten the term of the loan to around 4 years so within that time my debts would be cleared and being 33 when I took the loan out I could eventually try for a mortgage once cleared and preferably before I was 40. The loan I already had with the bank had payment protection on it which only covered me for a year for any such unforeseen circumstances. The whole reason I agreed at the appointment to take out a new loan was for a shorter term so I could pay it off quicker even though the monthly premiums were going to be £374.90 per month (£100 higher than I was paying on existing loan). I agreed with the bank adviser in February 2007 that this was a better option loan for me as was advised the payment protection covered more and was for an indefinite term so if anything should happen I need not worry, I went ahead and agreed the loan, all I have got paperwork wise is an unsigned letter dated February 2007 with a printed sheet stating monthly repayments £374.90 payable 1st of every month and over a term of 54 months. Since I was made redundant end of July 2007 I have been claiming on my payment protection with no problems (except them being late with payments occasionally) but I had an absolute shock yesterday the insurance chap on the phone when I was chasing payment again stated that they would pay this months then next months then my 12 months protection was up and they would not be paying anymore as my protection had a 12 month limit on it. At present the bank are talking to their customer relations centre but havent got back to me as obviously past August 2009 if the insurance company are not paying my loan and I dont find employment then I cannot pay it until I do find employment and I am now frit scared of hassle from the bank and further default charges. As my loan was taken out prior to April 2007 (I think i've heard something about loans before this date) is there anything I can threaten the bank with or do regarding my loan as I am truly in shock about the misleading advice they gave me regarding my payment protection cover because if it was no better than the last loan I would not have bothered to take it out with extra payments a month. I would like to know where I stand regarding this as I believe I was missold the loan or payment protection to be told one thing in the bank and then to find out what I was told was a load of rubbish and it only had the same 12 months protection on as my previous loan.

Thanks Lassie69

[alanalana]

Hello lassie,

Hi, sorry to trouble everyone.

I was made redundant in August 2008, my loan was taken out February 2007 and when I was sold the loan being a single parent with a daughter I decided it was better to be safe rather than sorry and to have PPI insurance on my loan so it would cover me for unforeseen eventualities such as illness, death or sickness. I went to my bank in my lunch hour to sort the loan out and already had a pre existing loan with them which was either 5 or 7 years term with monthly payments of around £260.00 per month but I had decided I wanted to shorten the term of the loan to around 4 years so within that time my debts would be cleared and being 33 when I took the loan out I could eventually try for a mortgage once cleared and preferably before I was 40. The loan I already had with the bank had payment protection on it which only covered me for a year for any such unforeseen circumstances. The whole reason I agreed at the appointment to take out a new loan was for a shorter term so I could pay it off quicker even though the monthly premiums were going to be £374.90 per month (£100 higher than I was paying on existing loan). I agreed with the bank adviser in February 2007 that this was a better option loan for me as was advised the payment protection covered more and was for an indefinite term so if anything should happen I need not worry, I went ahead and agreed the loan, all I have got paperwork wise is an unsigned letter dated February 2007 with a printed sheet stating monthly repayments £374.90 payable 1st of every month and over a term of 54 months. Since I was made redundant end of July 2007 I have been claiming on my payment protection with no problems (except them being late with payments occasionally) but I had an absolute shock yesterday the insurance chap on the phone when I was chasing payment again stated that they would pay this months then next months then my 12 months protection was up and they would not be paying anymore as my protection had a 12 month limit on it. At present the bank are talking to their customer relations centre but havent got back to me as obviously past August 2009 if the insurance company are not paying my loan and I dont find employment then I cannot pay it until I do find employment and I am now frit scared of hassle from the bank and further default charges. As my loan was taken out prior to April 2007 (I think i've heard something about loans before this date) is there anything I can threaten the bank with or do regarding my loan as I am truly in shock about the misleading advice they gave me regarding my payment protection cover because if it was no better than the last loan I would not have bothered to take it out with extra payments a month. I would like to know where I stand regarding this as I believe I was missold the loan or payment protection to be told one thing in the bank and then to find out what I was told was a load of rubbish and it only had the same 12 months protection on as my previous loan.

Thanks Lassie69

(except them being late with payments occasionally)

This could be useful if they have failed to comply with the PPI terms and conditions on paying out when they are supposed to then this could bode well in the argument that it was mis-sold as they did not uphold the terms of the agreement therefore making the agreement useless to you.



You may have some trouble in reclaiming especially as you have successfully claimed on your PPI. However IMO you should still have a stab at getting your PPI back.

Please have a look at the stickies at the top of the forum there is a lot of useful information in them.

There is one.... links

which has dozens more links some will be relevant on mis-selling and how to go about reclaiming others are general interest. This one is also very useful....

PPI - Some Notes for Claimants..


Spend time and have a good read make notes on what you can use and any questions just post them up and someone will try and assist

aa