Only way to cancel PPI is to sign up for a new loan???

Jacks_xxx

Morning lovelies! :wave:

Just back from the bank where we were trying to cancel the PPI on a loan as we have bought a better stand alone product and they said the only way to cancel the PPI was to cancel the loan - so basically pay back the money.

They suggested we take out another loan with them at a significantly higher interest rate in order to do this.

Any advice???

Cheers,

Love Jacks xxx

oldbanker

Hi what Bank is this? they should offer you a consolidation loan at the same APR as the previous loan when did you take the loan out?

Jacks_xxx

Hiya hon,

Thanks ever so much for responding

It was August 2005 with HSBC.

Love Jacks xxx

chatnoir

hey,

same thing for me.

Took out a loan with Northern Rock in 2006?? with PPI but relised wasn't the best idea to add any more debt to what I already had so tried to cancel the PPI. Northern rock told me that I would need to take another loan without the PPI which ofcourse was at a higher rate! I declined and I am still paying the PPI.

Can I now get this cancelled and reclaim the PPI I have paid since I tried to cancel?

marshallka

When you cancel the PPI you will most probably only get a small rebate against it. ALso if these were single premium policies then you would have been paying interest on this for the full term of the loan. This will show on your settlement.

You should not have to have a higher APR on the other loan just for cancelling the PPI.

See what the FSA says about this.

Unfair rebates of PPI policies
http://www.fsa.gov.uk/pages/Doing/Regulated/consumer/tackle/ppi.shtml

http://www.which.co.uk/advice/cancelling-your-ppi-policy/index.jsp


Have any of you been missold do you think and if so join the PPI reclaiming discussion thread.


Some lenders may say that they will have to reappraise the terms of the loan if you cancel a single premium policy, but that is not the case; your loan terms should stay as they are and if your lender says anything to the contrary, contact the OFT.

Jacks_xxx

Thanks Guys! :T

You've given me loads to read about there Marshallka. I'll make a :coffee: and sit and go through all of that now.

We weren't miss-sold it as such although we did already have an income protection policy which would have covered the payments in theory and so we didn't need PPI.

Hubby says he was never ever asked about it - it was just put on there otherwise he would have tolds them about the IP that we already had in place.

Banks are buggers aren't they? :rolleyes:

Love Jacks xxx

countrygirl84

Oh my god! I cannot believe this is true. Why should you have to take out another loan at a higher rate just because you want to cancel your insurance?! I worked for NatWest and I know that you don't have to with them, you can cancel it at any point during your loan. So either this person is just trying to sell you another loan to get their sales up or their rules are ridiculous. Have you tried calling a second time just to make sure that the first person was telling you the truth? If not I would call them again but not tell them anything to do with your previous conversation.

Jacks_xxx

countrygirl84 wrote: »

Oh my god! I cannot believe this is true. Why should you have to take out another loan at a higher rate just because you want to cancel your insurance?! I worked for NatWest and I know that you don't have to with them, you can cancel it at any point during your loan. So either this person is just trying to sell you another loan to get their sales up or their rules are ridiculous. Have you tried calling a second time just to make sure that the first person was telling you the truth? If not I would call them again but not tell them anything to do with your previous conversation.

Thanks for the support and info honey - and the righteous indignation on our behalf! :T

We rang HSBC in the first instance and they said we would have to speak to our branch about it, so hubby took the day off and we went and did just that. What a waste of a days holiday! :rolleyes:

We're going to have one more go with them and then we'll move all our money out of HSBC - our savings, our ISA and our current account, and write them a letter to tell them exactly why we're doing it. @r$eholes.:mad:

(I might have a look at NatWest - they seem much nicer! )

Hubby has a near perfect credit score and mine is classed as good so we shouldn't have much trouble getting a new loan with someone else - or we might see if we can figure out a way to use 0% cards and overdrafts to help us to pay this bloody loan off asap.

Either way the loan has just made it to the top of my list so it will be gone as soon as I can manage it.

Cheers hon!

Love Jacks xxx