Can I cancel PPI?

lbu04sms

Hi, I am a forum virgin so bare with me...

I have been told by my bank that I cannot cancel the PPI without re-applying for a new loan? Which I have heard that they will just adjust the APR to account for their shortfall??

Is this right? or am I being fobbed off?

I am going to follow the process and put in a claim to get a refund, but I would like to stop paying the portion of my loan repayments that are PPI now!!

Thanks in advance

di3004

lbu04sms wrote: »

Hi, I am a forum virgin so bare with me...

I have been told by my bank that I cannot cancel the PPI without re-applying for a new loan? Which I have heard that they will just adjust the APR to account for their shortfall??

Is this right? or am I being fobbed off?

I am going to follow the process and put in a claim to get a refund, but I would like to stop paying the portion of my loan repayments that are PPI now!!

Thanks in advance

Hello and welcome.;)

Unfortunately this is what most of them do, because the PPI is actually added within the loan repayments, maddening I know.

If you continue to do this then make sure the rate is that equal or better, then of course yes do reclaim on the PPI, if mis sold you have every right to, so go for it.
More info here for you as well on the below link, if you require any help form here just yell and post your letter to them by recorded delivery, this is your proof of posting.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Good luck and please keep us posted.;)

lbu04sms

thanks will keep you posted........

marshallka

lbu04sms wrote: »

Hi, I am a forum virgin so bare with me...

I have been told by my bank that I cannot cancel the PPI without re-applying for a new loan? Which I have heard that they will just adjust the APR to account for their shortfall??

Is this right? or am I being fobbed off?

I am going to follow the process and put in a claim to get a refund, but I would like to stop paying the portion of my loan repayments that are PPI now!!

Thanks in advance

Hi, I doubt by cancelling the PPI you will stop paying the proportion of the repayment that is actually towards the PPI because when the PPI goes onto the agreement it becomes another loan. This is because where single premiums are concerned you actually borrow the money from the lender in another "loan with interest payable over the whole term of your original loan and they pay over to the insurer a lump sum premium payment. When you cancel you only usually get a small rebate of the premium back and not of the interest paid on the premium as well.

di3004

lbu04sms wrote: »

thanks will keep you posted........

Your welcome, we look forward to hearing the outcome of this.;)

Itsmineanyway

marshallka wrote: »

Hi, I doubt by cancelling the PPI you will stop paying the proportion of the repayment that is actually towards the PPI because when the PPI goes onto the agreement it becomes another loan. This is because where single premiums are concerned you actually borrow the money from the lender in another "loan with interest payable over the whole term of your original loan and they pay over to the insurer a lump sum premium payment. When you cancel you only usually get a small rebate of the premium back and not of the interest paid on the premium as well.

Actually by cancelling the PPI which you can do now because by the sounds of it that was added to your loan which is a case of missold PPI.
What will happen is that they will/should adjust the payment because you have cancelled and no longer want PPI so your monthly loan payment will reduce and you will get back the PPI refund with interest for your unused premiums. Write back to them and back it up with comments from the internet where the new laws state that you can cancel your PPI and get a refund etc. If they again don't allow PPI cancellation tell them that you will write to the Ombudsman etc. Most loan lenders will pay up now rather than get fined and bad press. To sum it up (1) You can cancel (2) Your payments will be adjusted because the future payments won't include PPI
(3) They should give you a refund because they missold PPI to you as it was a policy added to your loan and charged with interest over the full term (4) Check the PPI policy and if it stated that you could claim for only a year and not for the full loan period then again it was missold.

In my correspondence I am backing my PPI refund requests with facts from the internet in my letters so that they know I mean business!
Good luck and I have cancelled my PPI with all of my loans no probs!

Itsmineanyway

lbu04sms wrote: »

Hi, I am a forum virgin so bare with me...

I have been told by my bank that I cannot cancel the PPI without re-applying for a new loan? Which I have heard that they will just adjust the APR to account for their shortfall??

Is this right? or am I being fobbed off?

I am going to follow the process and put in a claim to get a refund, but I would like to stop paying the portion of my loan repayments that are PPI now!!

Thanks in advance

Which bank is it?

Actually by cancelling the PPI which you can do now because by the sounds of it that was added to your loan which is a case of missold PPI.
What will happen is that they will/should adjust the payment because you have cancelled and no longer want PPI so your monthly loan payment will reduce and you will get back the PPI refund with interest for your unused premiums. Write back to them and back it up with comments from the internet where the new laws state that you can cancel your PPI and get a refund etc. If they again don't allow PPI cancellation tell them that you will write to the Ombudsman etc. Most loan lenders will pay up now rather than get fined and bad press. To sum it up (1) You can cancel (2) Your payments will be adjusted because the future payments won't include PPI
(3) They should give you a refund because they missold PPI to you as it was a policy added to your loan and charged with interest over the full term (4) Check the PPI policy and if it stated that you could claim for only a year and not for the full loan period then again it was missold.

In my correspondence I am backing my PPI refund requests with facts from the internet in my letters so that they know I mean business!
Good luck and I have cancelled my PPI with all of my loans no probs!

busbyh

Hi, I cancelled my PPI which was £8732 and only got a refund of £698. and a £2 reduction in my monthly payments.(I had made abou £30 mths payments) Not much is it!!!!
This Ins was only covered for 5yrs and yet my loan was over 25yrs.
This was a single premium as marshallka has spoken about. I have since claimed the full PPI and interest back through the FSCS.
This was a with a finance company, not sure how it works with the banks

Also even though I cancelled the PPI I still owed them the money as it was added to my loan at the beginning, hence SINGLE PREMIUM. The rebate of £698 was taken off the balance of the loan and not given back to me.

busbyh

marshallka wrote: »

Hi, I doubt by cancelling the PPI you will stop paying the proportion of the repayment that is actually towards the PPI because when the PPI goes onto the agreement it becomes another loan. This is because where single premiums are concerned you actually borrow the money from the lender in another "loan with interest payable over the whole term of your original loan and they pay over to the insurer a lump sum premium payment. When you cancel you only usually get a small rebate of the premium back and not of the interest paid on the premium as well.

Quite right marshallka;)