Hsbc - cancelling current ppi

janeybaby13

Hi
first post!! My bf has had a loan with hsbc and coz he didnt realise has got ppi on it, he's just paid over half the loan but i made him ring up hsbc today and cancel the ppi as he's in the armed forces so doesnt really need it! They said it cannot be cancelled and he would have to take out another loan with them to cover that loan and not add ppi on. Does that sound right to anyone. I thought that they could have just cancelled it. As its approx 50 pound a month for the ppi we want to get rid of it! Would be very gratefull if anyone could help on this matter.

Jane

marshallka

janeybaby13 wrote: »

Hi
first post!! My bf has had a loan with hsbc and coz he didnt realise has got ppi on it, he's just paid over half the loan but i made him ring up hsbc today and cancel the ppi as he's in the armed forces so doesnt really need it! They said it cannot be cancelled and he would have to take out another loan with them to cover that loan and not add ppi on. Does that sound right to anyone. I thought that they could have just cancelled it. As its approx 50 pound a month for the ppi we want to get rid of it! Would be very gratefull if anyone could help on this matter.

Jane

Hi, as you had the loan with the PPI added the actual PPI becomes another "loan" on the agreement so yes, a new loan must be drawn up when cancelling it.

I note you say the PPI would have been no use as he was in the armed forces. If this is the case then perhaps you could reclaim the whole amount back that you have been charged to date as even though the PPI is being cancelled for now your repayments would not reduce by £50 a month at all as interest was payable on the whole amount of PPI over the entire term of the loan. This is why single premiums are frowned upon.

If you decide to go for misselling then there is a guide here
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance