PPI - Can they make you have it?

sams_mummy

My husband was approved for a loan with Northern Rock today, and due to his good credit rating, he got their best rate (5.6%). HOWEVER, the lady that he spoke to said he could only have the loan if he took out the PPI - if he didn't take it out, she would no loger approve him.

Is this right, I can't believe that it is legal? Any advice would be greatly appreciated.

Louise

jasmin10

I don't know if this is right or not.

All I do know is that when I used to work for Bradford and Bingley years ago they really pushed their staff hard on selling insurance policies as this was where the managers etc got major commission. If we didn't sell enough we were pulled up into the office and asked why.

Catch_A_Fire

This is not at all true. In order for the insurance to be compulsory, the cost must be reflected in the quoted APR. It is completely optional. Northern Rock will send your husband with the credit agreement an additional sheet which details why they suggest he takes the insurance that they offer, but ultimately it's his choice and his choice only. Sales agents earn pretty bonuses for selling insurance, if your husband was told he would be refused the loan if he didn't take the insurance tell Northern Rock about the call and name the agent if you can; suggesting or insisting the insurance is a condition of the application being accepted is a breach of FSA regulations - any lender would take this seriously - it might even cost the agent some of their ill-earned bonus.

westie666

I agree ALPF (alliance and leiscter) where the same, normally you can cancel within 1 month of the date the money is paid into your account.

Damn sales targets...if only you could record descussions like that

POSSETTE

sams_mummy wrote:

My husband was approved for a loan with Northern Rock today, and due to his good credit rating, he got their best rate (5.6%). HOWEVER, the lady that he spoke to said he could only have the loan if he took out the PPI - if he didn't take it out, she would no loger approve him.

Is this right, I can't believe that it is legal? Any advice would be greatly appreciated.

Louise

i went with N Rock for my large loan,i was borrowing 25k,they wanted £90 a month protection payment:eek: ,because of the low rate i got with them,it basically bumped up their profits....3 times they insisted i had it..each time i said NO..i went to pinnacle thru this website and got same cover for £7.81:T a month..PLEASE do that yourself..tell them you do not have to take thiers,my step daughter works at Egg and she says you never have to have cover.

Catch_A_Fire

POSSETTE wrote:

i went with N Rock ................i went to pinnacle thru this website and got same cover for £7.81:T a month...

Pinnacle provide Northern Rock's insurance "Loanprotect is underwritten by Pinnacle Insurance Plc and is subject to eligibility." (http://www.northernrock.co.uk/loans/paymentProtection.asp)

Pinnacle's own website does not appear to offer unsecured loan cover.
http://www.pinnacle.co.uk/
It does pet cover, mortgage cover etc.

Are you sure your cover is with Pinnacle?

sams_mummy

Thanks for all your advice, I am much reassured.

Louise

regularsaver1

No way

insurance should meet a need - and should not be sold as compulsory as now every borrower needs it

Cumbrian_Male

Take the loan then after they deposit the money in your account cancel the PPI within 14 days under the "Distance Selling Regulations"

linniestorm

Northern rock did the same thing to my Mum. She has a good credit history and wanted about £2000 over 2 years. The guy on the other end of the phone hounded her for about 20 mins to get the payment protection. In the end (after a bit of nagging from me!) she said to him she didn't want the ppi, but she would have a look at maybe adding it on to the loan after she got it

She had no intention of doing this but it was just to get him off the phone as he'd upset her quite a bit just generally asking all the information she'd given during the application and other personal questions. Lo and behold when the agreement turned up (next morning) it had ppi added. So she rang up to complain and spoke to someone who said they were sorry and it would be sent out without ppi. But it didn't arrive. She then had people ringing asking her why she hadn't returned the agreement! Because she couldn't return what she didn't have! (Though I think they were hoping she was desparate or something and would sign the original agreement) She gave up in the end and went elsewhere.

maforduk

No, THEY (The Banks) Should not FORCE you into Buying the PPI.
I complained to the A&L about a sales person that tried that on with me, let's just say that the person I spoke to wasn't happy that I was forced to take it and immediately put my complaint in to the manager. RESULT.