How easy is it to cancel plpp

maxamos

I have just taken out a loan through my bank to consolidate some credit card debts.

When the form came through it had the payment protection automatically added with no obvious way of opting out.

What I want to know is how easy is it to cancel this protection (it's over £70 per month and I'm sure I can get it cheaper from another company), I know there is a 30 day cooling off period but will this affect my right to have the loan.

Any advice

thanks

max

grumbler

I am not sure, but I think this long thread: Cancelling PPI CAN BE DONE!!!!! - is exactly about what you ask.

Rafter

Max,

I estimate that Banks make 10 times as much profit from loans with PPI than those without so they will go through hoops to try and get you to sign up.

Legally they cannot force you to take it.

Go have a look on a site like moneysupermarket.com and get a quote for payment protection insurance there. Armed with that information, go to your bank and get them to remove it. They cannot withdraw the loan offer - the insurance is for your protection - not theirs.

For other users, if your loan is up and running, you have to take out a new loan as you need a new credit agreement for the payments without insurance. The bank can use this to increase your APR or try and discourage you to cancel.

Good luck.

R.

Nod_Off

Would this work for other debts such as catalogues, credit cards etc? Most of my debts have been referred to debt collection agencies and I have agreed minimum monthly payments with them but I'm sure all my credit has PPI. As I have not kept up with the initial minimum payments, I then wouldn't be entitled to claim using PPI so not much point in me paying it....or is there?

maxamos

Just like to add a little update

I recieved the loan and waited a couple of days then phoned up First Direct and said I would like to cancel, initially the woamn on the phone advised me that I would probably need to restructure my loan but I got through to the lending department and informed them that I had found a better product for cheaper and that was that. Very polite, very easy.

I save around £70 a month for something that I don't need and am now very happy.

thanks for the advice

Max

Rafter

Max,

Well done you!

Payment protection sold with loans is such a waste of money and £70 a month is a big saving - over £4000 if your loan was over 5 years!

Glad the info about going armed with alternative product prices helped.

Good luck

R.

emmareid

I used to work for a bank for 6 years, even though the rules have changed a bit as far as im aware you have the right to cancel insurance at any time of the loan.
I would contact the FSA if you have problems doing this.
I left the banking industry as i found that it became very immoral !!!
Also whether you have taken insurance or not does not have any effect on your application for the loan