Cunning Loan Insurance Cost Cuts Article Discussion Area

fedupwithcharges

Im new to this forum and have read a fair few of the responses to the PPI issues. I am in the same boat. Im over half way through my loan with the Alliance & Leicester and recently tried to cancel my PPI (currently nearly £60.00 per month for 6o months, to be told that the insurance policy is a fixed term loan and they cannot cancel this agreement and that if I wish to cancel I have to have another loan with them, which will mean I only save a few pounds a month. I would also assume that the payment duration would be extended (it does not sate this in the letter). I thought I could cancel this as the agreeement clearly states the loan payments, seperately to the workings out for the ppi payments. Should I now challenge this?

hellllp!!! How has everyone else fared?

Retired_I.F.A.

If you want to cancell the insurance get in touch with the insurance company not the lender. You will find effectively what you have done is take out a loan and a loan of £x which pays for the cover during the loan term. The insurance company will give you effectively a surrender value of the policy and you simply alter the direct debit amount to the lender.

I know of a case albeit some 15-20 years years ago where the bank wrote to the borrower saying he had broken the terms of the agreement and that he must complete the enclosed consolidation loan application form to replace the existing loan. it was at some 15% APR or so more than the first loan and had a £300 or perhaps a £400 arrangement fee buit in too. I forget exactly now.

He wrote back stating that the person who interviewed him for the loan insisted the PPI was the only way he'd get the loan despite it not covering him because he was self employed and despite the permanent health insurance (income replacement plan covering ill health) he already had and he personally delivered the letter to the bank telling them where to shove the application form and gave them a dirty old jar of vasaline to help it on its way.

Pity no one ever saw the managers face when he read the letter and saw the gift to him but suffice to say that was the end of the matter.

cadgaboo

Help please

Almost 10 yrs ago I approached the Royal Bank of Scotland to open a current account; a condition of opening the account was that I take on the overdraft loan guard insurance; I was only asked if I was in paid work at that time which I was. They said that if I was ever to be unfit to work or I lost my job then my overdraft would be insured. In March this year I took out a loan with my bank, and was told that having the insurance wouldn’t be suited to me as I was no longer working having been medically retired in the last 6 months.
I have since taken a look at the Insurance Overdraft Loanguard Application Form and Policy booklet (having watched Martins show) and have discovered that this insurance I was conditionaly made to take out would never have covered me in the first place as it states in there that you had to be working, including self-employment for at least 16 hours per week in the UK.
Now although I was working when I opened the acc I was only ever in part time work, working 15 hours a week right up until December 2006 and carried on paying this overdraft loanguard right up until March 2007 when I took out a loan.

Does this PPI that Martin is talking about also include the overdraft loanguard?
The other problem is that although some of the site is back up when I download the free template letter it is all in gobbledy-gook
If you could answer my questions I would very much appreciate it as I’m not sure if the overdraft insurance loanguard is the same or not.

cuthbert_2

Hi I have insurance on a mortgage for a rented property which tenants have just moved out. They owe 5 months rent. Policy is meant to cover non payment but company are saying that we are not eligble. Can we use the letters from this site to claim back insurance payments for 3 years? We believe it was mis-sold.
Can anyone advize?

little_miss_spender

I got a capital one credit card in 2003 and with it came along the ticked box for payment protection insurance. I dont know why but for some reason i read through the policy summary and found that because i had an existing illness and i was self employed the policy was useless and i was basically throwing my money away on something that would neve be of use to me or my husband. So we called them in jan 2003 and cancelled both policies on my card and my husbands. I thought best put it in writing too which I did. I know this sounds really dippy but it wasnt until 2006 that I realised that they had carried on taking mine all these years but had cancelled my husbands as he requested. So i telephoned them and spoke to a chap and he looked on the computer and said oh yes there is a note on the computer dated the 23rd of Jan 2003 and you asked to cancel your policy, oh but it was not actioned I dont know why they didnt cancel it. So I had proof by the chap on the phone I took his name and the time I called him, just to make sure my husband also phoned and he was told when it was cancelled and he also took a name and time of call. Also I thought all these calls were recorded???? Anyway I wrote and asked for a refund of all my charges which amount to about £600.00 and was told flatly no chance. I wrote back and said the advisor had told me it was capital ones fault and they never actioned my request and i got back the same answer no chance. so i tried phoneing to get the information again and guess what. All of a sudden there is no record of my telephone call in 2003 asking to cancel the policy and the names I have taken down dont exist anymore. I was left with long silences, it was blatantly obvious they had wiped any evidence relating to my claim from the computer. I complained to the FSA and they said it was my word against theirs and they had sent the computer print outs to them and their was no record of my call, but i could have told him that to start with. Now though since this has been made public about the misselling surely I would now have a chance of getting a refund, if anyone knows should i go back to the FSA or direct to capital one??? any advice would be great thanks

Dylanwing

Hi Littlemissspender - Financial Companies seem to love you as much as they love me! Way to deal with Crapital One - Go onto their website and find their complaints procedure. Write a 'Final Letter' to them detailing your complaint, all of the calls, particularly the details of the guy who admitted the mistake. Also detail exactly why the policy was unsuitable and should not have been sold to you. Finally, threaten them with the Financial Ombudsman Service.
If they still refuse to budge, make a claim via the FOS (It's easy, forms can be downloaded and it's free) - And provided the FOS take it forward, it costs Crapital One £450!
As a last resort, you could try making a claim for mis-selling PPI - I confess that I am no expert, but I am sure there are threads on here, or you can post a new thread and you should get some helpful replies, as well as a few unhelpful and pontificating ones, as you have on your other thread!
Good Luck.

deepakgeorge

I have applied for a personal loan from Halifax for 25K on telephone and they have offered me the loan with PPI.

I somehow could not understand the accent of the executive on the phone and insisted that I will see the documents and sign. They offerd me a rate of 8.4% APR. For 7 years the monthly payment is £511.19 per month (which includes PPI).

When i checked on one emi calculator, for 25K for 7 years , the monthly payment should be £390. So looks like £120 is going to be charged as PPI. I am in urgent need of the funds. Will I have to reapply for the loan now or which is the best approach to take in this case. I am still waiting for the documents to come through. They were charging £50 for sending the documents through courier, but I have preferred ordinary mail and they cannot guarantee when the documents will come..

Anyways will wait since I am in need of cash now !! Can anyone guide me on this situation.:A

deepakgeorge

I called up Halifax and cancelled the PPI. They have promised me to send a new set of documents. Monthly payment is reduced by £120.

I told them that I could find cheaper insurance elsewhere and also had family to support incase of trouble. Thanks to everyone. Without this site I would never have thought about this..:T :money:

posh_paws

Hi, i am currently trying to sort out my daughters finances with help from this site. She took out a £5000 loan with the Halifax last year and was told she had to have the ppi to get the loan. This took the total amount owed up to £8500. She was having difficulties at the time and unfortunately didn't like to worry me with it!

We both went to the Halifax and they will not cancel the ppi, we have to take out another loan, and although she has paid £1000 off the loan already the halifax want £5100 to pay off the loan early!. If she carries on with the loan as it is she will pay another £7200.
I have been looking at the options of getting another loan for her and can get one from barclaycard at 6.9% where the interest will be approx £850 over 4.5 years. There is also the option of doing a balance transfer for life at 5.9% I would be grateful if someone could tell me which is the best course of action please as I can't work out much interest she would pay using the balance transfer (assuming she pays the same amount each month)

posh_paws

sorry but I forgot to add to my last post that she pays £101 per month