why cant hsbc do this

davefez

on my loan paper work it tells me how much a month i pay back on the loan and how much i pay a month for the insurance.I spoke too hsbc yesterday and they said i would have too take out a new loan if i wanted too get rid of the ppi this would mean a credit check on my file.is this right i dont understand why they cant just take the insurance off with out doing a new loan

the loan insurance is set up as a single premium

di3004

davefez wrote: »

on my loan paper work it tells me how much a month i pay back on the loan and how much i pay a month for the insurance.I spoke too hsbc yesterday and they said i would have too take out a new loan if i wanted too get rid of the ppi this would mean a credit check on my file.is this right i dont understand why they cant just take the insurance off with out doing a new loan

the loan insurance is set up as a single premium

Hi there

Yes this seems to be the case when cancelling PPI after the cooling period I believe.

However, if you do this, make sure the rate is that of the same or even better than the existing loan, where the repayments should be lower.

davefez

Thank you for your reply

Ive got a meeting at the bank at 4 ill let you know how i get on

di3004

davefez wrote: »

Thank you for your reply

Ive got a meeting at the bank at 4 ill let you know how i get on

Good luck Dave, just make sure they don't try talking you into anything.;)
Its always best to keep everything in writing as much as possible X

davefez

been too the bank and they offered me a new loan with an apr of 14.9 the rate im paying on my exsisting loan is 8.9 apr.The lady also told be that the loan isnt set up as a single premium.And that the insurance is payed monthly too the insurance company. this how my loan paper work is set out

principal loan ppi total loan

£25,000 £8,060 33,060


8.9 8.9 8.9

£34,610 £11,158 £45,768 (total with apr added on)

Can some one help we and tell me if this is single premium or not

Thank you for your help

di3004

davefez wrote: »

been too the bank and they offered me a new loan with an apr of 14.9 the rate im paying on my exsisting loan is 8.9 apr.The lady also told be that the loan isnt set up as a single premium.And that the insurance is payed monthly too the insurance company. this how my loan paper work is set out

principal loan ppi total loan

£25,000 £8,060 33,060


8.9 8.9 8.9

£34,610 £11,158 £45,768 (total with apr added on)

Can some one help we and tell me if this is single premium or not

Thank you for your help

Hi Dave

To be honest this is very high and a big difference to your existing one.

Did you take the insurance on with this new one?
If so they would have added it to what I believe into a single one, but hopefully someone else will come along here and give their opinion on this.

Do you mind me asking if you accepted this?
Thanks.

melorablack

As it was sold as a single premium they can't just take the insurance off the loan because you will still be paying more interest. They can't fix this problem with the interest without taking out a new loan.

davefez

di3004 wrote: »

Hi Dave

To be honest this is very high and a big difference to your existing one.

Did you take the insurance on with this new one?
If so they would have added it to what I believe into a single one, but hopefully someone else will come along here and give their opinion on this.

Do you mind me asking if you accepted this?
Thanks.

hi

i didnt take out a new loan it just wasnt worth it In the end would of ended up costing me more my main problem is i had too calim on my ppi due too having an accident.ive payed 4 years out of the 8 years on the loan and in this time ive never been late or missed a payment it just get too you when you see its costing you £115 a month for insurance

melorablack

If you claimed on it, it was useful to you therefore it wasn't really mis sold. You can cancel it, you just need to set up a new loan but you won't get a rebate because you have had a successful claim.

davefez

i wasnt saying it was miss sold

The thing is the women in the bank told me that the insurance isnt set up as a single premium and its set up as a monthly premium im just trying too find out if shes has give me the right info

melorablack

davefez wrote: »

been too the bank and they offered me a new loan with an apr of 14.9 the rate im paying on my exsisting loan is 8.9 apr.The lady also told be that the loan isnt set up as a single premium.And that the insurance is payed monthly too the insurance company. this how my loan paper work is set out

principal loan ppi total loan

£25,000 £8,060 33,060


8.9 8.9 8.9

£34,610 £11,158 £45,768 (total with apr added on)

Can some one help we and tell me if this is single premium or not

Thank you for your help

That is a single premium, you are paying interest on the loan plus the PPI, if it was a monthly premium you wouldn't be.