Lloyds PPI

richardmo

Hi,

I was hoping someone could answer a question regarding PPI for me. Yesterday i applied for a loan over the telephone with Lloyds and said i wasn't interested in PPI. During the conversation it was inferred that i may not get the loan without PPI so i reluctantly said yes. My application was succesful and i am awaiting the paperwork to be sent out to me. My question is if i cancel the PPI within the 30 day period cooling off period will Lloyds cancel the loan or insist that i pay it back immediately.

Many thanks

marshallka

richardmo wrote: »

Hi,

I was hoping someone could answer a question regarding PPI for me. Yesterday i applied for a loan over the telephone with Lloyds and said i wasn't interested in PPI. During the conversation it was inferred that i may not get the loan without PPI so i reluctantly said yes. My application was succesful and i am awaiting the paperwork to be sent out to me. My question is if i cancel the PPI within the 30 day period cooling off period will Lloyds cancel the loan or insist that i pay it back immediately.

Many thanks

You definately should be able to cancel the PPI and also whilst at it I would also make a complaint to the FSA and OFT about the sale of the PPI and what you were told in the phone call. Make sure that when you cancel you send your letter by recorded delivery and keep a copy for reference too.

richardmo

Thanks for the response. My main worry is that after cancelling the PPI they will cancel the loan or make me repay. Do you have any idea if this is likely to happen?

jonesMUFCforever

No they will not make you repay the loan.

mrmajika

You have 30 days to cancel the protection policy at no cost to yourself.

Once you receive your paperwork there will be details included on how to cancel. You just need to put it in writing.

As for the loans phone call, they should have made you aware that it is an optional cover. You should have been told on at least 2 occasions the cost of the protection on a monthly basis and the fact that it is optional. You should have also been told the total cost of the protection and informed that interest is charged on this. You should have also been told that you can cancel the policy within 30 days at no cost or cancel at any time receiving a partial refund.

I couldn't tell you if any of the above is required by the FSA (although I'm pretty certain that the majority of it is), but this is definately the practise that all LTSB telephone agents are required to follow.