Paypent protection policices - anyone had difficulty cancelling???

desperatelyinthered

I have all my debts with payplan and they have asked that I cancel any payment protection with them.

Unfortunately my Natwest Loan has payment protection on it, last time I asked to cancel it they refused, saying I would need to make the full payments for 3-6 months before they would consider taking this off.

Is this right???? It adds a lot of money to my outstanding debt - if anyone has any advice it would be greatly appreciated!!!

freeclimber

Hi desperatelyinthered

Some companies are better than others. Nationwide cancelled mine with no probs, credit card cos usually cancel fairly easily, but I'm currently trying to resolve an issue with Barclays.

First I was told that I had to reapply for a loan for the outstanding amount without PPI (yeah right, like that's going to go through!), then I was told on talking to their Customer Relations Dept that I should speak to a Personal Banker who would reschedule the loan (including a revised payment schedule) without running a credit check. The only problem with that is that, with the payment terms I want to go with in the short term, I would be committing fraud as I would not be able to stick to a new standard loan agreement.

I am following this up on Monday by speaking to a branch personal banker, but don't hold out much hope. Then I shall start writing letters to the various departments to see if I can't get it taken off anyway - they must realise it affects my ability to clear the debt...

Sucks really, and the upshot is that you might be stuck with it.

mattp_3

making 3-6 months payments should make no difference at all?

if you search the forums there is a template for a letter that you can send to cancel the repayment protection, based on the fact that they have mis-sold the protection (as most banks bully people into taking it as that is how they make so much money!!)

Creidt cards can be cancelled with one months notice - as they add the payment protection on each month.

it will take a bit of hassle, but keep on their backs and they will eventually cancel it!

good luck

rbelcham

Hello there. I'd been arguing with the Coop about PPI for some time before I went on a DMP with the CCCS. The irony is they originally refused to refund the PPI, but as soon as I went with the CCCS they defaulted the loan and have said that, as part of the default process, they will refund the PPI. So it all worked out ok in the end.

For anyone else reading this, think twice before taking out PPI. It may not be worth it.

Good luck with your journey to be debt free :cool: