Welcome loan can I cancel the PPI straight away and still get the loan?

dragongirl101

Hello all, this is my first post on here.
My husband has applied for a loan and was refused but they passed it on to the Unsecured Credit Company who also said no but went through to Welcome loans who said yes. This was on Monday and we are still waiting for the paperwork to turn up (today is saturday) but this is what they said on the phone:
The loan is for £6000 over 48 months. They said the monthly repayments are £350 and that £180 of that is PPI and life insurance with Norwich Union!?!
My husband is self employed so we believe that this PPI would be pointless anyway and don't want to pay £350 a month! However taking the £180 off the £350 would mean repayments of £170 a month which we are prepared to go for as we really need the loan ad don't think we will get it elsewhere- he has no ccj's and all 4 of his credit accounts are up to date and showing as "satisfactory" on his experian report and he is on the electoral roll but there are a lot of previous searches on there bringing the score down.
My question is: When the paperwork comes, will we be able to sign the agreement for just the loan WITHOUT the PPI? OR, if we have to sign it and have the PPI will we then have a certain time period in which to cancel the PPI therefore not having to pay it but still get the loan?

Please any advice???

milliemonster

Do you realise how much this £6000 loan with Welcome is going to cost you over the 4 years? £16,800, you cannot seriously be thinking about signing up for this can you???????

Please please please think seriously before you take out a loan with Welcome Finance, there are numerous people on here who have ended up owing these crooks thousands more than they originally borrowed.

I have no experience of them myself but I don't think they will allow you to take the loan without the PPI and insurance etc (they also add on arrangement fees etc)

Kavanne

milliemonster wrote: »

Do you realise how much this £6000 loan with Welcome is going to cost you over the 4 years? £16,800, you cannot seriously be thinking about signing up for this can you???????

If it's 170 without the PPI then it would be 170*48 = £8160, a bit high but certainly not 16800 (that is with the PPI which the OP already said they don't want to take)

OP Have you tried calling welcome back and getting them to take the PPI off and send out new paperwork? Also, they aren't allowed to force PPI on you so stand your ground.

milliemonster

Kavanne wrote: »

If it's 170 without the PPI then it would be 170*48 = £8160, a bit high but certainly not 16800 (that is with the PPI which the OP already said they don't want to take)

OP Have you tried calling welcome back and getting them to take the PPI off and send out new paperwork? Also, they aren't allowed to force PPI on you so stand your ground.

From what I have seen Welcome refuse to lend without adding on their insurances and PPI, irrespective of what the law states, yes of course the OP could stand her ground and not take the loan but then she, like many others, is in the situation where her choices for a loan are extremely limited, Welcome know this which is why they can get away with their shoddy tactics.

di3004

milliemonster wrote: »

From what I have seen Welcome refuse to lend without adding on their insurances and PPI, irrespective of what the law states, yes of course the OP could stand her ground and not take the loan but then she, like many others, is in the situation where her choices for a loan are extremely limited, Welcome know this which is why they can get away with their shoddy tactics.

Hi there and welcome.;) (This is meant to be a reply for Dragongirl101), apologies for posting in your actual box thread milliemonster) lol.

I am very shocked to hear that they expect you to accept the ppi due to all the mis selling of this product which has been in the media over the last few years.
If you decide to have this loan hun, maybe you could suggest that you will find your own cheaper insurance to cover these repayments if needs to be.

A lot of finance firms are being investigated and have already been investigated and fined for forcing their customers to take on the insurance cover.

You should be given the choice to have the PPI, and should not be pressurised into taking this.

This way works out very costly and if mainly these insurance covers they supply for example if you had a loan for over 20 or 25 yrs, these only offer 5 year protection but you will still be paying for this for the full term of the loan, they also try to make it sound good by saying that if you do not make a claim in the first 5 years you will receive approx 50% of that back but do not trust this hun.

Okay its up to you and I would also check to see if your eligible for the cover, because mainly there are exclusions, such as a pre-medical health problems like back problems, stress related illnesses and so on which you will be unable to claim for if this is already a problem while taking out this cover.

I would check on this hun, but here on this site, check out the stand alone cheaper options to cover this and do not let them push you into taking this.

Good luck.

Above right at the top of this page there is a red box which states "reclaim £1,000's" check that out hun, there is explanations about reasons for being mis sold this product.

Whatever you decide to do I wish you luck!;)

Di.
x

dragongirl101

Hi its dragongirl101 again.
The loan agreement just came. It DOES state in small print that the PPI is optional and is not required as a condition of entering into the agreement. It says the following:
The amount of loan (cash advance they call it) is £6000. the amount of insurance is £3024 (so total credit £9024)
This is over 48 months
Interest rate is stated as 40.10%
It says that the LOAN agreement can be cancelled within 14 days. It says the INSURANCE can be cancelled within 30 days.
The amount of the repayments per month WITH the insurance is £350.22
The amount of the repayments WITHOUT the insurance is £230.94

What do people think? I think he should call them and ask to take of the OPTIONAL insurance and if they say no (we really need the loan) then just sign the agreement and send it off and when the insurance documents come, cancel the policy (within the 30 days)
???????

di3004

dragongirl101 wrote: »

Hi its dragongirl101 again.
The loan agreement just came. It DOES state in small print that the PPI is optional and is not required as a condition of entering into the agreement. It says the following:
The amount of loan (cash advance they call it) is £6000. the amount of insurance is £3024 (so total credit £9024)
This is over 48 months
Interest rate is stated as 40.10%
It says that the LOAN agreement can be cancelled within 14 days. It says the INSURANCE can be cancelled within 30 days.
The amount of the repayments per month WITH the insurance is £350.22
The amount of the repayments WITHOUT the insurance is £230.94

What do people think? I think he should call them and ask to take of the OPTIONAL insurance and if they say no (we really need the loan) then just sign the agreement and send it off and when the insurance documents come, cancel the policy (within the 30 days)
???????

Hi hun
Yes tell your hubby to call them and tell them that you know this is optional and you will choose your own cover to protect your repayments on the loan.
They really cannot make you take this cover, its the most expensive way of being covered and if you opt to take out a stand alone cover just also make sure your both eligible as well.;)

May I ask you, on the part of the agreement they have sent you have they added a cross for where you are both required to sign ?
I am curious about this because make sure this is not the one that has the PPI on it and you will have to request for an agreement without that insurance cover on it.;)

If they say no, tell them you will get some legal advice on this, this may change their tune.

Good luck and please keep us posted, cheers.
Di.
x

dragongirl101

hi thanks for the replies
To Di re; your question: Its just one form he has to sign and send back and there is a box on the form with the payment protection insurance which has a little box next to it with a tick printed in it. So think they would need to send another agreement with it not ticked?

Has anyone done this with Welcome before?? (phoned and ASKED them to take off the PPI?) Surely they cannot refuse us the loan or INSIST we have the PPI when it CLEARLY states on THEIR paperwork that this is OPTIONAL and not a requirement by them. Otherwise they would be going against what they have sent us in the paperwork!

Thanks
will post again to let everyone know the outcome after he has called.

di3004

dragongirl101 wrote: »

hi thanks for the replies
To Di re; your question: Its just one form he has to sign and send back and there is a box on the form with the payment protection insurance which has a little box next to it with a tick printed in it. So think they would need to send another agreement with it not ticked?

Has anyone done this with Welcome before?? (phoned and ASKED them to take off the PPI?) Surely they cannot refuse us the loan or INSIST we have the PPI when it CLEARLY states on THEIR paperwork that this is OPTIONAL and not a requirement by them. Otherwise they would be going against what they have sent us in the paperwork!

Thanks
will post again to let everyone know the outcome after he has called.

Hi hun
Sorry for the delay in getting back to you.

They have self ticked the agreement form then by the seems of things.
Your Hubby will have to request for an agreement without the PPI, if they start getting funny about this and says that he has to have this, also tell your hubby to tell them he has read the small print and is aware this is optional.
You can tell them you have already received advice if you want to.;)

Yes there are a load on this site who have had dealings with Welcome Finance, if you like check on the PPI Reclaiming/Discussion link.
here
http://forums.moneysavingexpert.com/showthread.html?p=14700923#post14700923

http://forums.moneysavingexpert.com/showthread.html?p=12805155

And you can always ask a question on there too if you want to hun, you will be surprised.;)

I hope they sort this out for you anyway,
Di.
x

di3004

Was going to add this in my above response to your question hun, but check this link out here also.;)

http://www.which.co.uk/advice/how-to-tell-if-youve-been-mis-sold-ppi/rules-of-selling/index.jsp

(also next time hun, keep refreshing the page if your waiting for a response - in case you miss them).

Good luck!
Di.
x

milliemonster

In your first post you said they had said he repayments would be £170 without the PPI but on your paperwork it states £230 without PPI, just check this with them and make sure you now what you are paying