Taking the protection from loans - aaarrrgghhh!

bluezone

Afternoon people,

I have just been on the phone for over an hour going through to various depts trying to stop the payment protection on my loans.

After 30 mins barclays told me I have to go into an actual branch where they will have to complete a new application (which I would be turned down for me thinks).
Barclaycard loan told me after 40 mins of being transferred and doing automated services that I have to inform them in writing and they will consider it.

It doesn't seem right that it took less time than this originally to take both loans out in the first place but as soon as you want to cancel something to cut your payments down then you are hitting your head against a brick wall :eek:

Has anyone else had this problem? And is there another way I can cancel this payment protection thingy?


Sorry I had to vent that anger out - aaaarrrrgghhhh!!!!!!

Tootsie_Roll

It's been a while since I underwrote a loan and PPI but my (old) experience is that you cannot cancel it without completely re-writing the loan and going through the credit score again. This is because all interest and add on charges, such as PPI, are worked out right at the beginning, all added together then divided by the number of months the loan is over - 24, 36, 48 or 60. This is called a pre-computed loan and is the way most loans are set up. So it is impossible to 'cancel' the insurance as it has already been lumped in with the interest and the actual amount you borrowed.

Revolving credit like credit cards are different though, interest and charges (PPI) are calculated monthly on the outstanding balances so should be easy to cancel.

So to answer you query - you might not be able to cancel on the loan but should be able to on the credit card.

regularsaver1

and m ost companies give you the 30 days where interest would not be charged on this for cancellation, but beyond that it would

you did sign an agreement after all - and if you do a new loan without ppi to repay the existing, you are then signing a new agreement

Old_iron_balls

Cancelling PPI can be done
Have a nosey here.....

http://forums.moneysavingexpert.com/showthread.html?t=117175

*Louise*

Dunno about loans - bit difficult if it is worked nto the repayments....but for phones insurances, and other smaller amounts, I just cancel the Direct Debit online - one click and it's gone.

I probably shouldn't do it that way, but whenever I try and phone a company to cncel properly they end up trying to persuade me to keep it and sometimes even try and sell me something else as well! :rolleyes: :eek:

Tootsie_Roll

Old_iron_balls wrote:

Cancelling PPI can be done
Have a nosey here.....

http://forums.moneysavingexpert.com/showthread.html?t=117175

Well that's excellent news for some but not others !

Just scanned through all 9 pages of the post and only noticed 1 poster who had cancelled his ppi and received a refund and that was because he had complained about being mis-sold the poilicy in the first place. Plenty of people look like they have received 'refunds' but how many of these had their payment dropped as well ? It's possible that the banks concerned left the loan alone and just refunded the ppi from a 'slush fund' to keep every one happy. It's also not clear in most cases which type of loan they had - as I mentioned previously if it is one that has daily or monthly interest added then it is a very straightforward process to cancel. Also it looks like a lot of people complained about the policy (lots of bad PR about it recently), for banks it is in most cases much easier to offer a 'refund' just to make the complaint to go away.

So clear as mud from that post !! But certainly worth a go.

bluezone

Cheers for the replies. I was just hoping that they would cancel but wil have to wait and see. The most annoying thing was fr me that I was using the phone during works time (which they are not fond of) and being either on hold or passed from one dept to the next when they could have told me what i needed to know first of all!!

Going into barclays today to see what they say.