Barclays Bank PPI trap

Angelwaves

My fiance has a loan with Barclays for his landrover and he is paying £185 per month to pay it off with about £3200 left to pay. After reading about how many people get forced into payment protection as part of a loan I checked out how much he was paying and found out it was £25 per month. I therefore got him to call Barclays and ask if he could stop paying this payment protection as he doesn't really need it. However, they told him he can't do that and instead he would have to get a new loan from stratch to pay off his remaining amount and that they then could only offer him an interest rate of 23.9% when his current loan is 5.9%. This would mean he would pay more in the end which seemed very unfair. Is there no way he can get out of paying for the payment protection without getting stung?.

jonesMUFCforever

How long ago since he took out the loan?
What is his general credit score like now?
They are right that in most cases they will have to close off the old loan and reopen with net new figure but of course he is not duty bound to apply for another loan with Barclays. He can apply anywhere for a loan once he knows what Barclays require to close off his old one.
I also presume he has a plan B in case of illness or incapacity?

Angelwaves

He took the loan out about 15 months ago. He has been told his credit rating score is too good as he's not got a credit card and has always paid his payments on a previous loan on time. Not sure if he has plan b in case of illness or incapacity?

Any suggestions?

jonesMUFCforever

Well if he does not have a plan B how will be pay the loan off if incapacitated?
It's all very well people on here congratulating themselves as to how they have been refunded PPI premiums but most won't have a hope in hell of repaying if something goes wrong.