Payment protection on loans?

flower_chops

Can I cancel this and is it advisable to? I've been doing my DMP since March now and it's only just ocurred to me that it would cut some money off the HSBC personal loan.

never_again_2

Cancel, Cancel, Cancel!!!!

The PPI is such a rip off. It is way overpriced and can add up to a £100 per month on top of repayments., when you can get the same cover for a fraction of the cost.

I worked for a bank and (note the word worked!) we were targeted to sell PPI on a huge % of loan applications. Most of the time people didn't need it, but I would be flogged by my manager if I didn't sell it to them anyway. I left because I found this practice to be really unethical.

I don't disagree that its good to have some cover to protect you if your ill, unemployed or die, but you can get this cover for a fraction of the cost through other insurance policies. I have £100,000 of life cover for £6.20 per month which will more than cover my debts if I die. You can get similar cover for sickness etc if you are concerned.

Out of interest could you post what the amount borrowed, repayments and the total cost of your PPI is please?

flower_chops

Oooh gosh, I'd have to look it up in the mountains of paperwork. Overall my loan is for £15,000, my original repayments were £320/month but now I'm paying around £200/month and waiting for my account to finally default so debt can go to Metropolitan.

Can I phone my bank to cancel the PPI or would I be best to put it in writing (recorded delivery naturally!)?

never_again_2

I would go in to the bank and tell them that you want to cancel the PPI from your loan. They should have a form for you to filll in. DO NOT go into a room with them in case they try and use the opportunity to sell you something. Ask for a dated copy as proof you have completed the form as things like this have a habit of going missing. Take a letter with you just in case they don't have a form, but get them to give you a reciept. If you live miles away from the branch, send a letter special/ recorded delivery (I forget which needs a signature). They probably won't do It over the phone, but from your point you need proof you have cancelled it.
If you have got concerns that you wouldn't be covered in an emergency speak to a financial adviser.

flower_chops

Just phoned HSBC and man told me I had to go into the branch to cancel it as it would then make my payments lower and they'd need to draw up a lower payment plan for me. However, as I am going through CCCS I don't want to sign up to a new agreement with HSBC...any ideas on getting round this so I can carry on with my DMP?

never_again_2

Oh, just to say I would cancel ASAP, I'm not sure what will happen when then loan is defaulted on. I'm sure someone with more knowledge about that will be able to advise you.

Good Luck

never_again_2

Call CCCS and ask. I haven't needed to go down this route, so I have no knowledge of what you are and aren't allowed to do. From this forum I have picked up that you can't go into any new agreement with out their knowledge. My last post overlapped with your last post.