Cancelling PPI CAN BE DONE!!!!!

Gemmzie

BullyCornedBeef wrote:

I visited a HSBC branch today and enquired about cancelling PPI on my Graduate Personal Loan and they said it can be done. Obviously the lady at the bank tried to talk me out of it but I was insisting that its is not needed.

Anyway, this was how she was going to do it. Take out a new loan (at the same rate) to pay off the old loan with simmilar sized monthly repayments set up. I say was going to do it because there was a complication relating to the fact im inbetween jobs at moment, so classed as unemployed. My new job does not start until September so I need to get hold of my contract for them before it can all be completed.

Did they offer you a similar size loan?

Mother currently owed abour £9,400 with PPI (£7000 original loan amount - disgusting) and to take it off and get a new loan they wanted to offer a loan of £8,500. The PPI is £2000! So they do try and take the mick - just to warn people!

ScoobyDooLondon_2

Can you cancel the insurance even if you're in arrears? This is with Black Horse if that's ok any use?

Thanks

wills7

Im In arrears with BH and i'm hoping to cancel mine, just sent my letter today

BullyCornedBeef

Gemmzie wrote:

Did they offer you a similar size loan?

Mother currently owed abour £9,400 with PPI (£7000 original loan amount - disgusting) and to take it off and get a new loan they wanted to offer a loan of £8,500. The PPI is £2000! So they do try and take the mick - just to warn people!

Without PPI the ammount outstanding was about £3k and they offered me a loan for that ammount (without PPI obviously) to be payed back over the time I had outstanding on my original loan and monthly repayments of about the same ammount like before.

jumbojet

Hi All,

First of all I would like to thank you all for such a wonderful and valuable suggestions.

I took a Barclays loan with PPI earlier. Since, one year I was paying them regularly and I had a thought of cancelling the PPI. Initially they haven't agreed. I had visited my bank twice then explained clearly the issues with the loan. Then they agreed for an alternative and did a new loan without PPI for the balance amount, which makes me a lot of difference in monthly repayments.

Thanks once again
Jumbo

Lola23

I'm also trying to cancel my PPI. Have been told over the phone that I can't cancel, then they sent me a letter saying I had no grounds as it was explained when we took out loan . I tried to explain that we did not realise that it was not compulsary to take out the insurance with them (TSB), but they were not interested.

I have sent in a letter now requesting again to cancel with copy kindly supplied from member on this site.

Fingers crossed, but we'll see what happens. I think they'll find a way to keep us chained.

:mad:

BullyCornedBeef

They will try and put it off as much as they can so you have done the right thing by sending the letter.

Ham_On_Rye

my PPI was cancelled swiftly by HSBC after I'd sent a letter loosely based on the template mentioned previously.

However - the reason that such high loan amount/small PPI amounts are being refunded is that apart from Rule of 78 interest repayments (Which should only apply to loans taken out pre Jun '05), HSBC and doubtless other lenders weight the proportion of repayment in favour of the PPI at the start of the loan, in their words to "Reflect the risk of the higher loan amount outstanding, and therefore the higher liability". Dioesn't reek of common sense to me, and in my case it meant that although I'd made 17 payments on a loan of £22k+, my loan had only gone down by £1,000 as roughly two thirds of the capital repaid had gone on the PPI, thus affecting the value of the new adjusted loan post-PPI.

I'm currently drafting a complaint based on my loan agreement stating a repayment plan which the bank hadn't actually adhered to in terms of the proportionate capital repaid. While I'm at it I'll ask for a refund of PPI payments made.

God I hate banks.

Ciara111

Ham_On_Rye wrote:

Dioesn't reek of common sense to me, and in my case it meant that although I'd made 17 payments on a loan of £22k+, my loan had only gone down by £1,000 as roughly two thirds of the capital repaid had gone on the PPI, thus affecting the value of the new adjusted loan post-PPI.

I'm currently drafting a complaint based on my loan agreement stating a repayment plan which the bank hadn't actually adhered to in terms of the proportionate capital repaid. While I'm at it I'll ask for a refund of PPI payments made.

God I hate banks.

This is exactly what is happening to me... can you share with me your thoughts on writing the letter with regard to this?

shockerdaq

AAARRRGGGHHH

Please Please send me a template letter for Lloyds TSB. I was told I had to have PPI to get my loan with them but the payments are crazy. When i work out the total I have to pay over the 5 years it works to £4,200 total @ 70 per month.

I have spoken to the helpline and they quoted me the 30 day thing, sounded like a general spill.

I could really do with not paying this every month but although I have read on here that others are getting refunds and being successful with their cancellations I just can not believe Lloyds will let me.

Any help in the right directs would be great...