Thanks very much for the response, I'll give it a try and see how I get on.... I hadn't challenged it before now becasue I didn't really realise what I'd signed up to (terrible I know!). thanks again :-)

Initially you have to write to the lender better by recorded, stating the reasons why you consider you were missold the PPI policy.. asking that premiums are returned and for them to restore the loan to the same state as it would be had the policy not been added. This option is open to anyone, it is always worth a try as they can either agree and make a refund, or simply refuse.

To be honest I cannot guess on the outcome, the fact you took it out in 2004 and have not challenged it by now might go against you,.... but as above you have nothing at all to lose and everything to gain by trying.!!

Hopefully, if the lenders do agree then they would refund this without further action on your behalf, however, if they refuse then after Eight weeks if you are still in dispute and consider the lenders response is unfair or unreasonable.....you then have the further choice to ask for the involvement of the financial ombudsman (below)...who have the power to investigate and overturn the lenders decision, if the FOS find in your favour.

http://www.financial-ombudsman.org.uk/faq/complain.html

Also, if I am unsuccessful could they demand I repay the outstanding loan and the credit card I have with them?

They are not supposed to take any punitive action against you just based solely on the fact you have made the above request, if they did, then that in itself would be deemed as unfair treatment by the FOS.

Hi There

I'm considering making a claim re the above and am looking for some advice. I took out an £8k loan with Egg just after University in 2004. Although I was aware I took out the PPI I did not fully understand that they added a lump sum to my loan and charged insterest on it for the duration of the loan term.

I've had a look at my paperwork and the £8k loan attracted a lump sum of £1.6k for PPI. From my research online, I understand that I have grounds for a claim on a "single premium" loan policy basis, the practice of which is now banned by the Competition Commission/FSA. I am worried that Egg will just say I was aware of the PPI (which I ackowledge) but no one explained that this would be added to the loan and I would be charged interest on it. I thought i paid an amount each month separately. On re-reading the terms and conditions though it does seem to indicate that it was a lump sum etc. I just didn't fully understand what I was signing up to.

Do I still have the ability to make a claim even if the paperwork indicates I was aware of the single premium?

Also, if I am unsuccessful could they deman I repay the outstanding loan and the credit card I have with them?

thanks in advance!!!