Cunning Loan Insurance Cost Cuts Article Discussion Area

desperate_and_frightened

thankyou for reply I am glad there is someone out there with some ideas - unfortunately though I have tried this, and because the mortgage is worked out on money coming into the house and not as loans on disposable income they would not lend my husband and I a larger mortgage - i dont understand these companies when the money i am paying for the loans etc far outweigh what i would pay for the extended mortgage ?

thankyou anyway - any other ideas?

desperatehousewife_3

HI

IS there someone who can advice me on a urgent matter.
i have a loan out with my bank (who i have been with for near on thirty years) i was adviced (being nieve as i am with no one to advice me or family)to take out ppi,it was not till i came on to this site recommended by someone that i began to realise just how easy it is to be taken in by banks.going through my contract with them to my horror i am paying £3500 ppi on a £9000 loan.I have been to see my bank and explained to them that i was advised by them to take this out.i have explained that it is causing me hardship and could they possibly cancel my ppi (as i found i can get it a lot cheaper)they have agreed to cancel it out with the loan,but i will have to take out the loan again without the ppi as there is 5years and 3 months left they only take loans out over 5 or six years and i will not get the same rate as i got then,at the moment thers is 7.9%.can anyone advice me in what to do.as i have a appointment tomorrow and dont want to find myself getting tangled up again.would apprciate some sound advice.

d/h

jimmyay

I had a similar thing today with Halifax. Took out a £7k loan 2 yrs ago, due to the joys of PPI i am scheduled to pay another £3k on top - outragous now i realise in my more sensible financial state - i tried to cancel it this morning and was told ( after being passed through various depts of course, they don't like to make this easy) that i would have to cancel the existing loan , repay the "insurance loan" and make it into a new loan. that was before i asked to speak to a manager, and was promptly cut off. Nice!

I i don't want a NEW loan , or the new credit check it would necessarily involve ( remember too many credit checks can damage your score and i have worked hard to improve my credit rating, which is now good).

All i want is the insurance "loan" cancelled, as is my right, without it impacting on my credit rating in any way , good or bad .

Are they allowed to do this? Would be grateful for a response from someone who knows their stuff on here. thanks guys.

Edit - PS Is it worth attacking the loan provider through the courts for Unfair Contract Terms Act - i.e they are in effect penalising someone (making them take out new loan, possibly at worse rate of interest) just to get a better deal elsewhere. Sorry, i'm just fired up to fight now since the bank charges thing!

Infoprop

I recently took out a £9000 loan with Black Horse. I also took out the Payment protection Insurance offered of £41.31p per month. That evening there was a program on television about PPI warning of excessive charges. I then looked at this site and read the FSA rule regarding 30 days cancellation.

At that stage, about 3 weeks after the loan was taken out, I had not received eiether the Black Horse welcome pack or the Insurance documentation. I have since received the loan agreement docs but still not recived anything about the insurance.

I went to LLoyds TSB web site and downloaded the T&Cs for their PP insurance which said I could cancel before 30 days. I drafted a letter to Black Horse stating I wished to cancel and delivered it by hand.

Today I got a phone call telling me that they will be sending me a letter to sign to confirm the cancellation.

I am sure that had I gone thru the 30 day limit, I would not be so happy but I have to say I can't say that I was miss-sold anything though the "pre-contract information" could have mentioned the 30 day rule.

I now find that I can get insurance for just over £9 per month.

Just one small point that might help others. Does anyone know whether the 30 days start from the day you take out the loan and PPI or the day you receive the insurance certificate?

bewildered_in_belfast

:mad: I have just read some of the dissaster stories of PPI's. Here is mine. same old story, Husband goes on short time at work, get into debt, five years ago took out a debt consoldiation loan but they wouldnt lend us the full amount required so we had a £35,000 loan and still some debts. finally we had to secumb to an IVA which did not cover the loan, we have managed over the past three years and are about to clear both the loan and the IVA (without debt) but guess what? THE LOAN COMPANY TO WHOM WE HAVE ALREADY PAID BACK £35,000 ARE REFUSING TO GIVE US EARLY RELEASE FROM OUR £10K PPI AND ARE REQUESTING £35K IN SETTLEMENT. SURELY THIS THEFT CANNOT BE LEGAL. IS THERE ANYONE OUT THERE THAT CAN HELP OR ADVISE.

the government go on about debt and yet when we try to get our head above water there is always someone to push us back down,

i admit that we signed the papers for the loan at the time when we were desperate, but we were made to feel that the PPI was a condition of the loan.

desperate_and_frightened wrote:

Hello this is the first time I have been on any sites like this.

I feel i have learnt a lot from reading all the comments but i have a serious problem that i do not know which way to turn.

I took out a loan in July with First Plus which has the insurance etc added, i was told on the phone all the advantages, ie after 5 years if i had not claimed i would receive back a certain amount of money, which i could pay off some of the loan or use it as i wished.

last month, we had to take out a further loan (for a new roof) in doing this they asked for a consolidation figure from First Loan (it is a secured loan) and to my horror found the figure since July when I took this loan out had increased £13,000 on top of loan (£55,000) making it now £68,000.

My question is should I cancel the insurance protection scheme and cut my losses or do I continue paying this for 5 years, get back some money and then look again at insurances.

I could also try and get various other loans to pay off the whole amount now £68,000 this though i would have to do through 3 various loans as most companies only offer £25,000 loans.

Please help I do not know what way to turn and i cannot keep going on with sleepless nights.


Thankyou for any replies





Mortgage £85,000
Secured loan £25,000
Secured loan (as above) 55,000 (+13,000)
Secured loan £8,000
MBNA credit card 0% £5450 going down!

:eek: :eek: :eek:

lizowen

I took a £17.000 loan out with barclays in October 06 and the condition of the low interest rate (6%) was i also took the ppi, i agreed and signed on the dotted line, i was informed that everything was setup from that day and i was on my merry way. I then had an accident 2 weeks later and was off work, i went straight to the bank and asked for all the relavent forms to fill in so i could claim on the insurance, to my disbelief and horror, i was informed that the insurance doesnt take affect untill the first payment is taken which was in November and there for my condition will be classed as on going!! I asked to cancel the ppi but was told if i do the loan will be recalculated at a higher interest rate because i dont want ppi and i have an on going condition and im off work sick! so im paying for something i cant use!!!! Is this right?

tomboyagh

l took out a personal loan with a PPI. Two years later, l have lost my job through redundancy. l want to know what my entitlements are and how l can make a claim. l will be grateful if someone can help me out.

kennyabs

MSE_Archna wrote: »

This thread is specifically to discuss the content of the

Cunning Loan Insurance Cost Cuts Article

To discuss or ask a question about the article: click reply

HELP IM SELF EMPLOYED AND DIDNT REALISE THESE POLICIES WOULD NOT COVER ME HOW DO I CANCEL MY LOAN PROTECTION POLICIES ?

ldb55

Hi,

I am new to this site and over the last month have really got into saving and reducing our debts with help from this site.

Feeling very please with my progress this week - sent out letters to 2 banks threatening court if they do not refund bank charges, reduced ntl telephone and broadband payments by £10 per month, and cancelled PPI insurance with lender and set up new policy saving another £10 per month. Even better I received a cheque for £801.47 refund for overpaid loan.

Then I though how have I overpaid. Rang up Nationwide, who the loan was with and they told me it is to refund insurance that I had cancelled, and they would still be taking the payments for this every month.

BUT THIS DOESN'T ADD UP !!

41 months left of loan PPI of £32.26 p/m = £1322.66.
New PPI is £22.50 p/m x 41 months = £922.50

TOTAL PAY OUT £2245.10
LESS REFUND OF £801.47 = £1443.63 = 41 MONTHS X £35.21

OVERALL MONTHLY INCREASE OF £2.95 PER MONTH!!!!!

AM I GOING MAD OR DOING SOMETHING WRONG!!!

Gingerpuss_2

I want to know why Barclays Bank offer Loan Insurance to unemployed people, when the benefits are only applicable to someone who is working i.e if you are taken ill and unable to work they pay up! In my book that comes across as 'one big con'. My husband (the breadwinner) was taken ill last September, when I tried to claim on the insurance I was told it only related to me, as I had taken out the loan. So again I say why was I offered something, that Barclays with full knowledge of my work status, new I would never be able to benefit from. I have had a reply to my complaint which was just a load of 'fob off' jargen. I have tried to ring & again 'fob off' with 'he's in a meeting' or whatever. I shall not let it go! I am adament that I have had money taken from me in a underhand way. I welcome any advice.