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Loan Protection Insurance - got it but dont get it!! HELP!
pollypocket
Posts: 31 Forumite
in Loans
Hi all,
Usually on debt free wannabee - but query re Loan Protection Insurance as trying to sort how much bloody debt I owe!
Got a loan from Natwest earlier on in year - made four payments in all and yup I took out insurance.
Loan £21,000
Loan Protection Insurance £5452
Interest £5475.20 @7.9%APR
Total to repay £31927.20
Been reading how difficult it is to cancel Insurance - just had a look at T&C and really confused now.
WHAT DOES THIS MEAN???? - (red underlined bit below)
T&C
5. Insurance Cancellation Rights - for a short period after the agreement is made, there is a statutory right to cancel the optional Loan Protector Insurance. Details are set out in the banks Loan Protector Insurance Leaflet. If the LPI is cancelled during the statutory cancellation period the Insurance Loan part of the loan will be extinguished but this will not affect the Customer's obligations to repay the Main Loan under the Agreement. The loan protector insurance may also be cancelled at any other time during the term. If this is done the premium will be rebated and the rebate used by the bank to reduce the balance of the loan. This will not affect the customer's obligations to continue to repay the outstanding balance of the loan and the bank will advise the customer of the amended repayments ( which will be greater than the main loan repayments) required as a result of cancellation.
I DONT UNDERSTAND WHY THE PAYMENTS WILL BE GREATER - Can save myself over £100.00 a month ( I THINK!! DONT GET IT!!)
Thanks to all for taking time to read - hope it makes sense
Polly
Usually on debt free wannabee - but query re Loan Protection Insurance as trying to sort how much bloody debt I owe!
Got a loan from Natwest earlier on in year - made four payments in all and yup I took out insurance.
Loan £21,000
Loan Protection Insurance £5452
Interest £5475.20 @7.9%APR
Total to repay £31927.20
Been reading how difficult it is to cancel Insurance - just had a look at T&C and really confused now.
WHAT DOES THIS MEAN???? - (red underlined bit below)
T&C
5. Insurance Cancellation Rights - for a short period after the agreement is made, there is a statutory right to cancel the optional Loan Protector Insurance. Details are set out in the banks Loan Protector Insurance Leaflet. If the LPI is cancelled during the statutory cancellation period the Insurance Loan part of the loan will be extinguished but this will not affect the Customer's obligations to repay the Main Loan under the Agreement. The loan protector insurance may also be cancelled at any other time during the term. If this is done the premium will be rebated and the rebate used by the bank to reduce the balance of the loan. This will not affect the customer's obligations to continue to repay the outstanding balance of the loan and the bank will advise the customer of the amended repayments ( which will be greater than the main loan repayments) required as a result of cancellation.
I DONT UNDERSTAND WHY THE PAYMENTS WILL BE GREATER - Can save myself over £100.00 a month ( I THINK!! DONT GET IT!!)
Thanks to all for taking time to read - hope it makes sense
Polly
"Washing ones hands of the conflict between the powerful and the powerless is to side with the powerful not to be neutral."
0
Comments
-
Im no expert but it looks like you have a good chance of getting a refund on your PPI. Alot of people inc myself are/have had to battle to get it cancelled !
Like i say im no expert but im sure someone will be along shortly to lend a handDebt at highest £16k+
Debt at lightbulb moment £14,800
Current debt £6336
Cleared £4206 in November 05 How ? Bye Bye PPI
0 -
Cheers Old Iron and well done on getting yours cancelled!"Washing ones hands of the conflict between the powerful and the powerless is to side with the powerful not to be neutral."0
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