Confused about my loan insurance...

Exerbusi

I took out a £5000 loan with HSBC last year. The value of the loan was actually just over £4000, but the loan protection insurance made the total value £5000.

I took out the insurance when I worked in my old job as there was a lot of uncertainty about the future of the business and I may have found myself out of a job. Now I have changed jobs and work in a very stable government-linked company. Unless I get sacked, losing my job is almost impossible.

Is it possible you can take the insurance off your loan? Has anyone ever done it? Was it worth it?

di3004

Exerbusi wrote: »

I took out a £5000 loan with HSBC last year. The value of the loan was actually just over £4000, but the loan protection insurance made the total value £5000.

I took out the insurance when I worked in my old job as there was a lot of uncertainty about the future of the business and I may have found myself out of a job. Now I have changed jobs and work in a very stable government-linked company. Unless I get sacked, losing my job is almost impossible.

Is it possible you can take the insurance off your loan? Has anyone ever done it? Was it worth it?

Hi there

I assume you mean cancel the insurance ?

Did you need this cover and did they give you a choice when you had this loan?
If not there is a possibility that you were mis sold this and you can try o reclaim this back on the grounds of them mis selling this to you.

You can cancel at anytime but if I were you I would also try to reclaim on this too if you believe you were mis sold.

Some examples of mis selling:

You were pressurised into taking this cover and were told you had to have this to be accepted for a loan.

There were exclusions which may not have covered you, maybe a pre-history back problem, stress related conditions etc.

They did not explain the full cost of cover to you or the interest you would be paying on top etc.

There are many more reasons.

Above the page where it states Reclaim £1,000's I would check out that link, then go onto the PPI part of it to check this out, there is also a letter template to help you out with this.

You can always post about this on the Reclaiming/discussion thread above of loan page.

Please look deeper into this hun in case you have grounds for complaint.;)

Good luck and if you want further info please post in the mentioned site, cheers.

You could always go for a stand alone option here to cover your loan which is far cheaper.
http://www.paymentcare.co.uk/index.php
Di.
x

Exerbusi

Wow! Thanks for the help.

To be honest, I wasn't mis-sold the insurance, I took it out when jobs in my industry were up for the chop! Now I am working at a very stable company I dont need it any more.

I can't justify the extra few hundred quid the insurance will cost me, so I want to remove it. Is it a complicated process? Will it take a while?

di3004

Exerbusi wrote: »

Wow! Thanks for the help.

To be honest, I wasn't mis-sold the insurance, I took it out when jobs in my industry were up for the chop! Now I am working at a very stable company I dont need it any more.

I can't justify the extra few hundred quid the insurance will cost me, so I want to remove it. Is it a complicated process? Will it take a while?

It should not be a difficult process, but give them a ring and ask them for a written breakdown of what your new repayments would be.;)

Any probs just get back here where someone will get back to you as soon as they can to advise you of your best options.;)

all the best.
Di.
x

marshallka

Exerbusi wrote: »

I took out a £5000 loan with HSBC last year. The value of the loan was actually just over £4000, but the loan protection insurance made the total value £5000.

I took out the insurance when I worked in my old job as there was a lot of uncertainty about the future of the business and I may have found myself out of a job. Now I have changed jobs and work in a very stable government-linked company. Unless I get sacked, losing my job is almost impossible.

Is it possible you can take the insurance off your loan? Has anyone ever done it? Was it worth it?

Usually to take the loan insurance off the loan you have to have a new loan. Your insurance was actually a loan also and they only rebate a very small amount for cancelling it. They then redo you another loan. Were you made aware of this?? You actually borrowed the money to pay for the insurance in one lump sum.