Cunning Loan Insurance Cost Cuts Article Discussion Area

jayneybaby

Hi Im new to these forums & was hoping for somw help. I took out a Firstplus loan, secured on my house & was sold a PPI & told that if I didn't make a claim my insurance money would be paid back to me after 5 years. Now I dont know whether to continue paying (I have another 3 years before the 5 years are up) or attempt to cancel this PPI. If I do cancel can I reclaim the insurance money already paid. I am very confused about this whole situation & and any help anyone could offer would be truely appreciated...

thank you

mopar

I`ve contacted Lloyds,and they say that to cancel the insurance I have to cancel the old loan etc,and guess what the new loan (less insurance ) is almost the same monthly payment! but I have here the original paperwork,and section 1.4"quote" If you choose to purchase the LPI,we will pay any LPI loan directly to the insurer to cover the price of the premium.If you decide to cancel the LPI policy the LPI loan will also be cancelled.The cash loan will continue and we will collect only the monthly repayment for the cash loan."
Now that does`nt seem to tally with what they say when you contact them,I think it is grossley missleading,I have contacted the ombudsman he say`s they are alowed to do it,my question is are they? have I got a case?

Rafter

Unless you cancel the PPI within the cooling off period, they are entitled to re-score your loan as a new application if you cancel your insurance.

Does seem unfair given their risk has not changed, but given the ombudsman has confirmed this it doesn't look like you have a case.

The problem is that loan companies were subsidising loan rates by charging so much for PPI. If all consumers got their PPI refunded then the banks would get into more trouble than they are already in.

R.

allan_d

I have written to Black Horse wrt cancelling my PPI (presently £90pm) on a £28k secured loan (£421 pm). I have arranged alternative cover through Adminicle Ltd, (found on the site) at a cost of £23.39pm. I have now received a letter from Black Horse requesting I phone their Payment Protection Enquiry Team, to discuss my agreement before they process my request. Does anyone have any experience of dealing with BH? Are they likely to demand I refinance my loan without PPI, and if so do they honour the old interest rate (high already) or will they make it "not worth my while cancelling".

I'm trying hard to restructure my debts without risking my house in the process. A saving of £67 a month would go a long way to doing this.

Any help much appreciated.

allan_d

phoned this a.m., PPI cancellation letter to be sent out and loan payment amended to £436. No hassle from call centre, so happy with outcome.

spiny73

I need some advice here.

I stupidly applied for PPI on an unsecured loan with Northern Rock back in 2004 not realising how much money it would add to the total.

In July 2007 I wrote to Northern Rock about cancelling my PPI on my current loan. Shortly after, the bottom fell out of NR and in October I received a letter saying that I would need to get a new loan with a new contract with, of course, a much higher rate of interest than the current 7.9% I'm on. I found this odd as Martin says on this very site the NR are one of the banks who WILL cancel PPI separately.

As I wasn't really mis-sold the PPI I left it but recently I've been looking at this again. NR no longer offer unsecured loans and when I checked their website for information on PPI, nothing displays except a message which says 'no products currently available'. If they no longer sell unsecured loans, how can I possibly take out a new loan with them?

Any thoughts or comments would be appreciated...

aggcardiff

Hmmm...did you apply for the loan online? If not, were you totally clued up about the ppi at the time? As in - did you know for example that you could have bought it much, MUCH cheaper elsewhere? You already state that you were unaware of the actual total cost. If that's the case you could still claim for mis-sale and that being the situation they would have to restructure your loan whilst both honouring your original interest rate AND reimbursing you. My loan was arranged in late 2001 and I've just heard today that I've been successful with a claim. Good luck.

offlimit

Aggcardiff did they send you out a form with questions to fill in? if so did you fill it in as i dont want to to jepordise my claim. Was your loan applied for on line.Cheers offlimit

di3004

Hi folks

I would definately try to reclaim on the PPI if mis sold for any reason.

In regards of cancelling, they vary from one to another bank, but check your terms and conds as well.

I would also advise though that its best to be protected, but as many of you will know there are cheaper stand alone options, you should not have to take out the banks own PPI policy.

Anyway, check this link out here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

If you require help on this, you can also post on the PPI reclaiming thread as well, here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=169

Ramstar

Hi there,
I have Mortgage Repayment Protection, Life Insurance and Income Protection as I was advised to get them. Are they in essence the same thing? Can I get rid of one or two?