Cancelling PPI CAN BE DONE!!!!!

uberzoldat

Hi.

I have insurance premiums charged to a credit card statement every month. I never asked for this insurance, and I'm sure I didn't opt-in to it, as I know what a rip-off the are.

I have asked them several times to remove it and they said they would, but now they say that the only way I can get it removed it is to write to them, as the insurance team don't take telephone calls any more. (surprise surprise)

I have written to them detailing every payment they have taken from me and asked to have them refunded. Does anybody know if I have any legal ground to stand on here if they refuse to pay?

Thanks ever so much for any thoughts anyone may have.

BreakFreeFromDebt

Hi all.

First of all, I’d like to say congratulations on such a fantastic site. All contributions are useful and have aided me in improving my situation.

Now for my problem…. (apologies in advance for the length)

Back in 2002 I took out a Graduate Loan with HSBC for £8500 over a 5-year period. I needed to pay off a credit card and finance a car for travelling to and from my new place of work.

This was pretty much an over-the-counter exercise with little discussion on the T’s & C’s or the effect they would have. Looking back, I didn’t get much explanation on PPI or way it would (or would not) be relevant to me. All that was asked was “Had I permanent Contract?” “Who with?”. Nothing regarding T’s & C’s with my new employer or benefits they would provide to me.

Anyway, in March 2004 my Branch contacted me offering to refinance my loan. I decided that this was a good idea as I had incurred high travel costs (my girlfriend lived a huge distance away) since taking out the original loan. So following a brief conversation over the phone with my Branch, I turned up and signed off on a refinancing of the loan over 5 years again.

Yes I know…… What a complete Idiot!!!

Again, the process was pretty much over the counter with little discussion on my circumstances.

2 years down the line and I have come to reassess my financial situation. I don’t struggle month on month and I have never missed a payment on anything. On finding this website I decided that things can be better!!

Currently I pay £240 for this loan. £42 of this is PPI. Because I have adequate provision in place, I do not need this cover and would really like to cancel it. So I contacted my Branch. They queried my I didn’t think I need it, I said my current employer provided me with benefits should anything occur. Then taking me by complete surprise, the Branch person asked me: “What happens if you have an accident and die??” I almost fell off my seat!!! Can they really say things like that!!! I replied I have insurance that would cover such an eventuality (like it was really her business to know!!). She suggested that I go into the Branch and discuss the matter with her and refinance the loan without PPI. I said that this was not satisfactory, as I did not want to incur further interest.

So using the letter template on this forum, I wrote a complaint. I stated I was not satisfied by my Branch’s response to my query. Stated I felt that I had not been adequately informed from the offset re PPI, response within 14 days etc…..

Last week I received a letter from my Branch Manager saying: “I am pleased to advise you that this can be arranged.” (cancelling PPI). “However, it does involve closing off the existing loan and setting up a new one”. Sound familiar???

Rather than dealing with the Branch, I decided to send a second complaint letter, this time to the manager of the Complaints Department. I relayed the response from my Branch and stated that this response wasn’t satisfactory the 1st time they suggested it. Went on to say I was frustrated with the service, felt that I wasn’t properly advised in the 1st instance, long time customer, on the cusp of seeking mortgage advice (I am now engaged to my girlfriend despite the huge distance), looking at alternatives etc……

Today my Branch called me to again discuss this 1st complaint (I don’t think they have seen the second letter yet). The Manager didn’t call but 1 of her assistants. She again mentioned refinancing but this time suggested over 5 years rather than the remaining 3 (how cheeky is that!!!). I again said I didn’t want to incur additional interest etc… Just want to cancel PPI. She went on to quote me refinance and it turns out they could save me all of £10 per month if I were to refinance!!! Am I supposed to thank them for this? Said I wasn’t satisfied and made excuses to stop the conversation.

I know people have asked this before, but has anyone experienced cancelling PPI with HSBC?? I admit I did sign off on PPI (cooling period etc..) on both instances. But I really did feel then that this was a condition of the loan, not an option. Had I known the hassle I would go through recently, I would not of taken it out in the 1st instance.

Thanks to this website and the contributions made by various people, I have woken up to my responsibilities and aiming to reduce debt over the coming months. Thanks to the advice on here and the careful budgeting and spending this month, I have managed to fund a full years car insurance. These companies are not going to get more money out of me than what they deserve. I am also on track to repay my credit card completely in the next couple of months.

Thanks everyone.

shazzer22

Only posted letter yesterday to Nationwide, boyfriend got a call today! A cheque for what he has paid since Oct is in the post about £275 and the rest is being cancelled! Amazing! :money:

Thank you all so much, can't believe it!!! :j :j :j

Reformed_Money_Waster

Result Shazzer22. Well done

yoshihirouk

MBNA

I worked for nearly 2.5 years at MBNA as a credit analyst in the loans department.

PPI/PPC can be removed at any time during the loan. 30 days notice is required and the request must be in writing (if you call they will transfer you to Insurance Retention who are trained to try and overcome 3 objections before asking you to write to cancel). You will NOT receive a refund for PPI/PPC already used but your loan payments will immediately reduce.

PPC can be removed without any charge before the first 30 days of the loan.

If you fancy tackling a little bit of telephone retention with them, simply keep repeating the words "I'd like to take the risk and I'm prepared to pay back the loan no matter what happens". It's one of the key objections that they are NOT trained to handle and fundementally is the best agrument against insurance.

0800 551 441 is the general loans number for more information.

deadmansgun

deadmansgun wrote:

Just completed handwritten letter to respond to Lloyds 30 days spiel to cancel etc...I'll let you know what happens!!

Hiya

Well as promised I'd let you know once I had received a reply and Hey Presto! One reply from my bank Lloyds TSB on doormat on return home this evening.
Ok letter is as follows...

"Dear ...I am writing further to your Loan Protection insurance concerns. The loan protection insurance is an optional policy. The acknowledgement of purchase form that you have completed states that you can cancel the policy within 30 days and receive a full refund of insurance premiums.

I am sorry to confirm I am unable to refund the policy in full due to the above information. As a gesture of goodwill I can offer to cancel the policy from the date you made the complaint !!.../01/06}.This equals £1189.14 plus interest to date. This refund will be made on the condition that the policywill then be cancelled and no further cover will be provided......If you accept this refund, this amount will be credited to your loan account within 21 days of receipt of your acceptance. Your monthly terms wil continue under terms and conditions of the loan, the amount of the payments cannot be reduced. By crediting your loan with the refund of Insurance Premium, the loan will finish earlier than originally agreed.

If you wish to reduce the monthly payments the loan will have to be rescheduled....only your branch can agree to this rescheduling.....This offer is made as a gesture of goodwill and in an effort of conciliation.

I trust my response has addressed the concerns that you raised and that you feel able to accept this offer......"
Goes on the to ask me to sign acceptance of offer and also encloses ombudsman's leaflet for any more complaints.

OK, so basically in relation to CASH LOAN which was taken out for £12134.78 {monthly repayment £316.48} LOAN PROTECTION INSURANCE LOAN which was taken out for £2659.21{monthly repayment £69.17} and finally LOAN {for payment of existing debts i.e outstanding loan again was with LPI} was taken out for £2524.74 {monthly repayment 64.82}. Total loan £17318.73 {monthly repayments £450.47}
Outstanding payments on loan as is stands is £12006.

So the big question is ..{awaits drumroll}..is above offer in your view acceptable or should I be fighting for all of the Loan Protection Insurance to be refunded plus interest. And if so, then how do I attack it?
Would very much apreciate some sound advice. Can I just say a big thank you for help so far!!!! :T :T :T :A

Katyag

I just got a letter from TSB today too, virtually identical to the above poster but saying they are cancelling the whole lot and refunind us £330.70. Loan is only £5k so im quite happy with that. It will be taking off the loan and the loan will be paid off quicker. Many thanks to OP and have said thanks.

Really pleased altho it took then nearly 2 weeks to reply. Now im going after all my bank charges!!!

nej

nej wrote:

Well my second letter (complaining at no response to the 1st) has produced a quick response, with the manager of my branch promising to get back to me within 2 weeks, either with a response or an update.
He also said that I should look through the "enclosed leaflet" that details their complaints procedure. Pity he forgot to enclose the leaflet though! :rotfl:

Well, more than 2 weeks have passed since the letter from the Branch Manager (Dated 1st March) was recevied, promising another update within 2 weeks...

I'll write a letter tonight and if nothing comes in the post tommorow I'll post it.

gwario

I'm hoping someone can help!
I have a loan with Egg, of £12136 (about 5k of this my dad's who pays me his part monthly- he's self empoyed which made it difficult for him to get a loan, so I just added to mine)

I pay 7.7 % interest, and the loan is due to finish in Dec 08- I pay £405 a month.

I currently have Accident,sickness Unemployment, and life insurance on the loan.

I'm not sure what the PPi costs me- so I have 3 questions....
a) Do I need it (and what would I save by not having it)
b) Will it cost me to cancel?
c) Do I need something else instead? (I am 27, earning £27k currently)

Any advice appreciated....

JamesBooker_2

Thanks to you wonderful people I have just had all my PPI charges refunded I never would have believed it was possible but if let them know you mean business they eventually give in! I have now wiped £1500 off my debt - only £2600 to go Thank you all!