PPI - Can they make you have it?

neveranymoney

We've just taken a loan with Northern Rock for £20000 and we were initially refused , but magically accepted when we took ppi! OH phoned up yesterday to cancel and was told that they would have to review our loan and would possibly change apr on the loan if we cancelled the ppi, as we only got the loan due to the ppi? Does this make sense? The operator also said it would lead to another credit check from the underwriters and this doesn't 'look good'! Are we being ripped off?

jaws77

I was rejected from NR as I didn't want the PPI. Went to Liverpool Victoria who were happy to lend without PPI.

maforduk

It is against the law to FORCE people to take out the PPI.
They tend to give out higher APR's in you don't have Life Insurance etc for large sums of money borrowed etc but ultimately, they should not refuse you because of this.
Get advice from the OFT (Office of Fair Trading).

neveranymoney

I'm so fed up of stupid companies being stupid. How can they change the apr if Ialready have agreed the loan, (and spent it!):mad: Oh well, Im going to win the lottery tomorrow night, and then I won't give a stuff!

Aprilgirl_2

neveranymoney wrote: »

We've just taken a loan with Northern Rock for £20000 and we were initially refused , but magically accepted when we took ppi! OH phoned up yesterday to cancel and was told that they would have to review our loan and would possibly change apr on the loan if we cancelled the ppi, as we only got the loan due to the ppi? Does this make sense? The operator also said it would lead to another credit check from the underwriters and this doesn't 'look good'! Are we being ripped off?

My partner took out a loan of £6000 with northern rock and was told that he could only have the loan if he took the loanprotect loan. The total amount he now has to re-pay is over £14,000!!!!!!! And now we find out that we didn't have to have it. I have written to them demanding the amount already paid back or I shall go to the financial ombudsmen!

petermb_2

It is not actually illegal for them to force you to take the loan out. However, if the tell you it is compulsory it is likely they will have made a huge mistake because there is legal repcedence that deals with this matter. You may well find that your NR loans are unenforceable as they are likely to have placed the amount of the ppi in the wrong place within the agreement.

There are ways that you can challenge these ppi premiums and win in every case.