Heavy Handed Loan Protection Insurance Tactics

TinyB_3

I've been approved for a £25K loan from LloydsTSB. However, after filling in and returning the appropriate paperwork, Lloyds then sent the same paperwork asking me to fill it in again because I'd forgotten to complete the Loan Protection Insurance documentation. Of course I hadn't forgotten, I just didn't want it. I was asked at the time of the loan approval if I wanted the insurance recommendation sent out which I agreed to, on the proviso that it is optional. I have since been told by Lloyds that the 'Loan and the LPI are linked and that I'd have to cancel the loan in order to get out of stumping up for the insurance. Alternatively, I could take out the LPI and cancel it within the 30 day cooling off period, but that might adversely affect my credit score.'

Neither piece of advice from Lloyds makes any sense and I suspect this is them trying to bully me into taking out its policy. Has anybody else had this problem?

P.s. I tried their customer complaint phone number, but its no longer in use and they haven't yet provided a new one. Perhaps it got worn out through over use.

jonesMUFCforever

Fact The loan and PPI are not linked.
The PPI is now set up separately with you paying a monthly premium (as opposed to a lump sum added to your loan). You can cancel at any time.

I would say one thing though - £25k is a hell of a lot to borrow - have you thought what would happen if you were unable to work due to illness or be made redundant.
You only have to read the posts on these boards to see many many people are struggling these days. Do your homework - try to get cheaper cover if you can BUT get some cover unless you can lay your hands on the outstanding amount should anything happen to ypu.