Cancelling PPI within 30 days?

Buttercup

This week my Son took out a loan with Directline said yes to the PPI Total Cover which has put an extra £40 on his payment a month for 5 years. I'm not sure if this insurance is a good thing or bad, it also covers life insurance that he hasn't got There were 3 levels of PPI but she has quoted him the most expensive.

He has now decided not to have the PPI, is it correct that he has 30 days to change his mind? He is not very good on the telephone and has asked me to write to tell them, is there a template for cancelling within the 30 days?

I would be grateful for any advice. Do they payout when problems occur?

mrcow

There is always a cooling off period with these insurance products, generally either 14 or slightly more. Get him to call them now (in case it's only 7 days with Direct Line) and tell them that he wants to cancel the PPI part of the loan.

It should be straightforward and the terms of his loan agreement shouldn't change.

With reference as to whether he needs the insurance, does he have a mortgage/family and how old is he etc? If he really wants life cover, then he can get it for a lot cheaper than that! (and if he has no assets then the debt would be voided on the event of his death anyway).

Don't be fooled by their insurance sales patter. PPI is worth billions to loan companies so they give you the hard sell! You have the right to cancel and to purchase insurance products as and when YOU feel the need!

Astaroth

http://www.directline.com/loans/loan_protection.pdf

Policy book is above.

Wording on this topic says:

Direct_Line wrote:

Your Right to Cancel
If this cover does not meet Your requirements, please return all Your documents, with a covering letter stating
Your name, address and loan account number details, within 30 days following initial receipt to Direct Line
(Loans), 339 Southbury Road, Enfield, Middlesex, EN1 1TW or call Direct Line on 0845 246 8400, lines are
open Monday to Friday 8am-9pm, Saturday 9am-5pm, Sunday 10am-5pm. Calls may be recorded. Your cover
will be cancelled and any premium paid will be returned in full, provided no claims have been made on the
policy during that time.

Simply need to write to the above address stating that you (aka your son) wishes to cancel the payment protection insurance as it is within the 30 days cancellation period given.

Like all insurance policies, they payout when you have a geniune claim as long as you obide by the rules of the policy.

mrcow

Okay, I've just looked at their loan T&Cs online and they give you 30 days for PPI cancellation. You can cancel by calling:

0845 300 5971

They are open until 9pm, so call them today!

mrcow

lol cross posted!