Cancel Loan Protection Insurance?

Lola23

Can someone please advise me if it is possible to cancel an LPI policy after the 30 days cooling off period?

We recently took out a personal loan with our bank (and as we have done before took out the insurance with it),not realising we didn't have to take it out with them.

I phoned to cancel and was told not possible because missed 30 days deadline. I explained about not being aware that we could go elsewhere for this and was passed to complaints dept who took details.

Letter in now to say they are unable to refund LPI as they have a detailed report from seller of the policy and also senior bank manager who was present when it was fully discussed. Yes we do admit that we signed for this, but as I tried to explain we didn't think we had any other option other than go with bank.

Do you think we have any way out of this?

Scary figures...£12000 loan over 7 years.
LPI is adding another £4575.48 .

This is my first post here. I have been reading comments and tips for a few weeks now and have decided to join.

Thanks

Astaroth

There is no automatic right to cancel an insurance policy once the cooling off period has closed unless you can prove that the insurance was miss-sold to you.

PPI insurance is under a large review across the industry because of the previous poor practice and so a lot of companies are potentially being a little more lenient at the moment because of the super complaint that has been raised.

It is a difficult question to answer if it has been miss-sold if your only complaint is that you werent told you get the insurance else where... given your complaint isnt that you dont want it but that you dont want theirs is to firstly check that you can get a like for like policy elsewhere for a lower price... if you cant then there isnt much point continuing to argue.

Lola23

Thanks Astorath. The thing is we did check out other insurance deals and set one up (not knowing there would be a problem), so now I am paying two policies. Original one is £54.47 per month. New one is £19 per month and will be too late to cancel this also now.
Costly lesson for us to be learned here. Wish I had seen this site earlier. I would probably have been able to get the whole thing cheaper.

Thanks again

regularsaver1

The thing is if they are tied they can not mention any other insurer other than their own

also they are obviously going to try to sell you theirs

Lola23

Yes this seems to be the problem. We are more aware now of things we should have asked. A costly mistake for us!

Given our circumstances that we were discussing with the bank at that time (which included a re-mortgage) + they knew we were on a really tight budget, yet they couldn't mention this to us.

Thanks

regularsaver1

no but then it would be wrong for them not to mention protection at all and they may not be able to discuss other insurers - circle isn't it

Astaroth

The problem is also that they are probably non-advisory in authorisation for the sale of insurance and therefore can only give you "the facts" and it is up to you to make a choice... they cannot really risk giving options as this can too frequently be construde as giving advice.

One of our motor advisors was hauled over the coals because they said to someone getting a quote that the car they had (something like an audi tt) was "a nice car" and it was deemed to have been giving advice on vehicles which they/ we arent authorised to do

Lola23

Just wish we'd realised we could have gone elsewhere for a lot cheaper. Loyalty to bank seems to have cost us this time.

I am older and should be wiser..am now!

Thanks

regularsaver1

yeah i know what you mean Astaroth - I give advice on insurance at the abnk I work at - but I kinow some banks are non-advised

I'm non advised on mortgage but you have to be so careful to not say certain things that can be taken as advice