Posted: Wed May 09, 2012 12:28 pm
PPI Question – Secured Loan – Worried Sick
Hi folks will try and keep this short. In 2010 a company took on my claim about mis-sold PPI as my husband and I both have public sector pensions so didn’t need the insurance. The bank the claim was made against in the end said it was not mis-sold but as a gesture of good will they would cancel the policy and refund the PPI amount to my secure loan. They refunded approx. £6500 to the secure loan and sent us a cheque for £1800 which was also added to the loan account so that we could pay the company. We didn’t realise this was what they were going to do and have to say the company who took our claim on was not that good. I had to pay the company a fee of 20% which was about £1200. We didn’t get the 8% interest rate at the time as the claim seemed to be taking ages so we basically said don’t worry about pushing them for that. We ended up with £600, £300 each for my husband and I. Stupidly for whatever reason we didn’t tell our IP and thought we would bring it up next year when we have to try and remortgage. I think I thought it would be fine as we wouldn’t owe the secure loan as much so would have more equity in our house. Now it looks as if we are in negative equity as we owe about £4800 on our mortgage, £19900 on secure loan and house is only worth about £60,000 if that as has severe damp problems. Even though we have a windfall clause in our IVA, I stupidly thought as the remaining money between was £300 each it was fine. Anyway now we have received a pack from our IP about PPI claims and I need to fill forms in. I am worried sick as I just don’t know what will happen. I have been in my IVA 4 years in August and I don’t want it to fail. I have never done anything dishonest in my life and now feel terrible. Any advice would be greatly appreciated and apologies for such a long winded question.
Hi folks will try and keep this short. In 2010 a company took on my claim about mis-sold PPI as my husband and I both have public sector pensions so didn’t need the insurance. The bank the claim was made against in the end said it was not mis-sold but as a gesture of good will they would cancel the policy and refund the PPI amount to my secure loan. They refunded approx. £6500 to the secure loan and sent us a cheque for £1800 which was also added to the loan account so that we could pay the company. We didn’t realise this was what they were going to do and have to say the company who took our claim on was not that good. I had to pay the company a fee of 20% which was about £1200. We didn’t get the 8% interest rate at the time as the claim seemed to be taking ages so we basically said don’t worry about pushing them for that. We ended up with £600, £300 each for my husband and I. Stupidly for whatever reason we didn’t tell our IP and thought we would bring it up next year when we have to try and remortgage. I think I thought it would be fine as we wouldn’t owe the secure loan as much so would have more equity in our house. Now it looks as if we are in negative equity as we owe about £4800 on our mortgage, £19900 on secure loan and house is only worth about £60,000 if that as has severe damp problems. Even though we have a windfall clause in our IVA, I stupidly thought as the remaining money between was £300 each it was fine. Anyway now we have received a pack from our IP about PPI claims and I need to fill forms in. I am worried sick as I just don’t know what will happen. I have been in my IVA 4 years in August and I don’t want it to fail. I have never done anything dishonest in my life and now feel terrible. Any advice would be greatly appreciated and apologies for such a long winded question.