Can Anyone Set Me Straight???

asquiths_2

Hi i have just been looking at the amount of loan ppi we pay each month for our loan and it's £95.50 so i phoned the bank to ask if we were able to cancel this with them and take it out elsewhere!
i was told we only had 30 days to cancel so basically NO!!
anyway i told her we were going to retake out our current loan with them for 23,500 as we are paying 8.9% and they have an offer on for 6.9% would i be able to do this, not take out the ppi with them and get it elsewhere!
she said i could do this but then began confusing me by saying rather than taking out loan ppi we would be better taking out life & critical illness insurance with them so we would still be covered but it would be alot cheaper.

is this right? and which would i be safest/best doing?

thanks

loubie_lou

Basically I would've thought they are just trying to con money out of you...Stand firm and ignore what they say. Many of these policies rarely pay out anyway on these policies.

Just say to them in black and white I want a loan for X amount and I don't want PPI cover. If you do want the piece of mind then there are many other ways of protecting your income and bills and it'll probably be cheaper then the loan company is offering. Just say NO THANKS!

Glitterari

Also, check the t&c's of the ppi - the ppi on my credit card (might be different on a loan) says you need to give 30 days written notice to cancel it. Worth going through, just in case.

Carly

in*the*red_6

Obviously life or critical illness cover would not cover your loan payments if one or both of you found yourselves unemployed for a period which is what PPI is supposed to do. A plan would only pay out a lump sum on death or proof of another critical injury as specified by the insurer (these are usually pretty serious things e.g. blindness). HTH

southernscouser

Most people on here opt out of PPI as it's so expensive!

There was a template letter on here that people were sending to their lenders and getting their PPI cancelled and refunded with good success. Think it had something to do with it being mis-sold!

I'll have a search to see if I can find it. Might be useful to do that before you re-negotiate your existing loan!

southernscouser

Have a look at this thread.

Hope it helps.

SS

asquiths_2

thank you all very much for your advice. I am not quite sure whether we are classed as being missold it though.
my husband is in fulltime employment and he signed all the papers!!
we didn't really get told much about it just that it was there to put us at ease incase he ever lost his job etc. they didn't sit explaining about it but i can't remember whether they gave us something to read ourselves at home.
so really i'm not sure if we have really been mis sold it or whether we were just naive in signing the forms?
we pay £95.50 per month and i've just had a quote from paymentcare £28.50!!!!!!!!!

so it's certainly getting cancelled somehow!!!!!!!!