Ppi Trouble

blacksta

I have just been approved for loan and waiting for the loan aggreement to arrive by post. My concern is that the agent made me buy payment protection which i now regret. Please advise me

1 Can i cancel the payment protection and will they still offer me the loan even before i sign an aggreemet

2 Or should i wait after i have received the loan and made a first payment and the cancel the payment protection.

regularsaver1

what do you mean by the agent "made" you buy? - was it your choice?

most should give you a 30 day cancellation period

chani1

Hi I work for a bank i can only advise if it an unsecured loan if it is in which case you do have a 14 day cooling off period, However it is vital you call them up immediatley and tell them you was pressured into taking it and for them to issue you with new paperwork straight away however if you make your first months pymt then cancel it you will be made to go through a new app as you would be changing the loan terms which will incur a further credit check which may give you a higher apr so call them first to avoid all that and it will not affect you. I can assure you no matter what they say taking ppi or not has no affect on the outcome of the loan or apr you receive. call asapto avoid delaying your funds. I hope that helps.

blacksta

regularsaver1 wrote:

what do you mean by the agent "made" you buy? - was it your choice?

most should give you a 30 day cancellation period

The agent kept giving me negative instances like '' How i would strugle to make payment if i every fell sick or lose my job and so on and forth''

He sweet talked me into buying the payment protection.

please ADVISE

lotto-dreamer

I had a very similar experience with Natwest. I was persuaded to add PPI to what was already a rather hefty loan (for me). Went home had panic attack and was sick with worry-I realised how much more it added to my monthly payments.

I immediately wrote a letter (easier than face to face when they are being persuasive) to say I did not want PPI added and dropped it in to the bank on my way to work. Told them, I would not touch the money until they took PPI off (just in case they'd paid loan amount in already).

Was summoned to bank to re-sign loan agreement without the PPI (saleslady had a face like thunder). I got the loan without the PPI.

Just be very firm. It's your money.:D

There is an article in "Mail on Sunday's" finance section today (3rd September) on page 11 -entitled "Revealed ..the Big Bank Bonus Game" - they get more points for selling you PPI as well as the loan. eg on a £15,000 - 19,999 loan without PPI they get 270 points but WITH PPI they get 590 points!!! .....hmmmmm;)

If they have approved your loan - it is highly unlikely they can refuse it because you change your mind about PPI - I've now found link to Martin's advice on the subject -

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094824697,77411,

regularsaver1

I suppose they have to ask you questions like - how would you afford the loan should you have an accidne tect, or lost job, but its how they say it. you should not feel pressurised

when selling insurance they should state the FSA to you and their level of advise - either Non-advised or advised

jamesd

You can cancel only the PPI and you should contact them as soon as possible to do that. Do not wait until you have made thef irst payment. It should not affect whether you get the loan or not - the two are supposed to be independent.

If you are concerned about ability to repay the loan if you are made redundant or become ill, look at the Cheapest Loan Insurance article and buy insurance from a cheaper provider to cover what you need to pay.

blacksta

I will be on the phone tomorrow and if they decline the loan on the basis that i canceled the ppi ''then thats tough''. I have to learn to be assertive when dealing with this people next time.

thanks for all comments

baldelectrician

took out a loan in april with PPI, and read the small print - as I was self employed it only covered me for critical illness & life.

PPI for loan = £84 per month = £1008 per year (critical illness & life only)

Critical illness & life for motrgage = £17.16 per month = £205 approx

total = £1213 per year

Went online and searched for critical illness & life cover for total borrowing (mortgage + loan) and got an annual policy for £171 per annum

A saving of over £1000 per year :j