Payment Protection - More bad news...

In May 2004, I took out a €12,000 Term loan over 5 years with BOI.

I was advised to take PPI for which I paid in advance the amount of €1,191.35. I have since read plenty of articles telling me just how foolish this was (for someone in my position).

I was told by the Branch Manager, with whom I was dealing, that if the loan was redeemed earlier than 5 years, the remaining portion of the PPI would be fully refundable. I noted this on the contract at the time.

The example given was If I paid the balance of the loan back after 3 years, I would have paid 36 out of the planned 60 repayments and would therefore be due a refund of 24/60 X 1191.35. (60 planned repayments minus 36 actual payments = 24)

I did pay the loan back early - after < 16 months. So I expected 44/60 x 1191 = €873.66 (allowing approx 3% handling charge, expected €840)

I received €640. Their excuse for the missing €200 - "commissions and charges".

Another kick in the teeth from Bank of Ireland.

Well one observation is that PPI cover would not be straight line calculation but should be higher when the loan is higher etc.

I think they have spent a lot of time going through this so you could ask for the calculations, and I dont think commissions and charges will feature.

Ask them for a detailed breakdown of these "commissions and charges". It's a nice coverall blanket excuse. You might at least make them put some effort into justifying it.

Have done. Thanks for your replies.

I've also got the TSB switch application form!!