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Northern Rock said they cant remove PPI without a higher APR
218bhp
Posts: 74 Forumite
I have a personal loan from Northern rock that I applied for online, as part of this I decided that I wanted the PPI as a safety net in case of redundancy etc.
However, a few days after I got the money in my account, a friend told me that PPI is usually a rip-off and I should have got a separate policy elsewhere. So I called Northern Rock to ask if they could cancel the PPI.
The man I spoke to told me that they couldnt' simply remove the PPI as that would involve issuing me with a new loan. He said that because I'd just taken out a loan, the search would be shown on my credit file and processing it again would result in a much higher APR.
I accepted that and thought no more of it until the other day.
Whilst I wasnt strictly "mis-sold" the PPI, I wasnt given the oportunity to cancel it - do these things have a cooling off period where I should have been able to cancel it???
I have just written to Northern Rock using the data protection act letter I found on here - It will be interesting to see the transcript (if any) that they can provide for that conversation.
Has anyone else managed to claim back PPI from Norther Rock for a similar reason?
However, a few days after I got the money in my account, a friend told me that PPI is usually a rip-off and I should have got a separate policy elsewhere. So I called Northern Rock to ask if they could cancel the PPI.
The man I spoke to told me that they couldnt' simply remove the PPI as that would involve issuing me with a new loan. He said that because I'd just taken out a loan, the search would be shown on my credit file and processing it again would result in a much higher APR.
I accepted that and thought no more of it until the other day.
Whilst I wasnt strictly "mis-sold" the PPI, I wasnt given the oportunity to cancel it - do these things have a cooling off period where I should have been able to cancel it???
I have just written to Northern Rock using the data protection act letter I found on here - It will be interesting to see the transcript (if any) that they can provide for that conversation.
Has anyone else managed to claim back PPI from Norther Rock for a similar reason?
0
Comments
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Alas, Northern Rock are completely and totally wrong.
If you remove PPI, banks are under an obligation (under the FSA guidelines) to put you in a position which is not disadvantageous compared to having PPI. So, they can't change terms or APR to your disadvantage if you want PPI removed.0 -
I think the issue is that the PPI is added as part of the loan amount. For example, if the loan was for £6000 and the PPI was £1000, they gave me a loan totaling £7000.
That is why they claim they couldn't easily remove the PPI without re-asessing my financial status.0 -
That doesn't make any difference - that's how PPI usually works.
Ask yourself this: if they approved you for £X and were satisfied you met the criteria, why would they then worry if you asked to borrow less?!
Just keep at them. They're being muppets.0
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