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Author: manzanilla Big funky green star, 20000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 171517  
Subject: sample PPI complaint letter Date: 15/11/2005 17:45
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There have been a lot of requests recently for help in cancelling PPI on loans. This post provides a sample letter which you could tailor to your exact circumstances.

It is simple to cancel PPI on credit cards: although sometimes they do try to talk you out of it, all you have to do is insist. But with loans, the premium for the PPI insurance over the whole term of the loan is calculated at the beginning and often added on to the loan amount so you are even paying interest on the PPI costs.

Banks often say that you are not entitled to cancel the PPI after 30 days, but what they do not tell you is that you should be able to cancel the PPI from this point on and get a partial refund.

And there are also some circumstances in which you should never have been sold the loan in the first place. In these cases, you might as well ask for a refund of all the money you have so far paid in PPI. But even if the bank refuses this, you should still be able to cancel the PPI from this point onwards.

So, the sample letter is as follows:

Complaints department
Bank's name & address

Re: account 999999999999999999999


COMPLAINT

Dear Sir or Madam,

I took out the above loan for £x,000 on dd/mm/yy. When I took it out, I signed up for Payment Protection Insurance. I phoned up on dd/mm/yy to ask to cancel it and was told that this is impossible. I am writing to complain.

Put in any of the following which apply:

[When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do. I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I am self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick. My situation was known to the person who sold me the loan, however he/she did not point out that the insurance was virtually useless to me so I think that I have been mis-sold the insurance.]

[When I took out the loan, I said I did not need the PPI as my employer provides generous illness and redundancy benefits, but I was told I should still take it out. As this is not correct, I consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I wish to cancel the PPI because since taking out the loan, my employment situation has changed. I am now self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick.]

[I wish to cancel the PPI because I now have sufficient alternative insurance cover from my employer and other sources.]

[I wish to cancel the PPI because I am in financial difficulties and cannot afford it. I enclose a Statement of Affairs which shows this.]

I have been advised that I should be able to cancel the PPI contract at any time and receive a partial refund of the premium that I have paid. I would like to do this. [And in view of the way I was mis-sold the insurance, I would like to ask for a full refund of the whole premium.]

I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service.

Yours faithfully,


nb There is no reason why you have to be able to prove that you cant afford the PPI before you cancel it, so in theory you should not need to send an SOA. However, I think it helps because it puts the bank morally in an even worse position if their PPI is causing you hardship.

How to compalin to the Financial Ombudsman Service is explained in detail here: http://www.financial-ombudsman.org.uk/consumer/complaints.htm.

I would love it if anyone who uses this letter reports back here to say what success they have had!

manzanilla
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