Black Horse Finance

mr_&_mrs_2

Hi

I have just taken out a secured loan with BHF & was given the loan at 9.9% if i took out their PPI.

I clearly stated that i didnt want PPI, they replied that if i didnt take their PPI that the intrest rate would be anything between 13% & 29%.

After thoroughly reading the documents there was a cancellation clause stating that the PPI could be cancelled within 30 days at no cost.

Can anyone tell me if they are allowed to rearrange the loan or the APR if i cancel the PPI.

These are both separate amounts on the documents & not rolled into one ie: it states the amount for the loan & the amount for the PPI separtely.

tomstickland

I don't know the answer to your question, but as a matter of interest, how much extra will the PPI cost? You could then work out an effective APR based on their base APR + the PPI costs.

The rates are not very good, even the 9.9% is way above what Cahoot or similar could offer you.

mr_&_mrs_2

The apr was quite good compared to a few others we tried, our credit history is not good due to previous circumstances, but getting there. I am going to cancel the PPI within the 30 days, I know thats the way they make a profit she told me that on the phone lol

I just want to know where i stand legally. Im not sure if they can up/down the APR dependant on whether you take the PPI. :xmassign:

tomstickland

Yes, I understand your plan and it seems good to me. Their PPI is just a way of effectively increasing the APR.
0% credit cards are the cheapest money, but the risk is that you can't pay it all off or shift it before the 0% period ends.