Northern Rock

Tom_Jones

Wow that's incredible surely it's your choice to have the insurance or not, and personally I would ring them back up and state that you want the PPI removed with immediate effect without taking out a new loan or you will look for a new loan with a different company. If they don't allow this make a formal written complaint.

Do not let them bully you into taking out a new loan at a higher interest rate.

Shop around for a new loan, as NR don't charge extra if you repay earlier.

STUDENT_2-2

What you can do to cancel the paypemt protection is to top up your loan by say £50 ie you are applying for a new loan with same company but without the protection. This is practically an instant accept.

The bank I work at allow this as it is like a new sale being made so everyone benefits including me when I get a bonus based on sales! However, be causious because you will likely pay interest penalties! However from May or so banks are no longer allowed to penalise for early settlement on new loans.

JasonW_2

STUDENT wrote:

However from May or so banks are no longer allowed to penalise for early settlement on new loans.

Interesting, do you have any more info on this? I am looking to pay off a loan early sometime next year and that would save me some interest payments :beer: Oh wait 'new' loans. Damn :mad:

JW

MarkyMarkD

Xbig is quite right. Normally it's charged up-front (because it's paid by the lender to the insurer as an up-front lump-sum premium). The idea you can "just cancel at any time" is rubbish as regards personal loans. You can't normally cancel the cover without redeeming the loan, and you may not get a full pro-rata refund if you get any refund at all.

Payment protection cover on mortgages, overdrafts and credit cards is completely different. With these, they charge a monthly premium and you CAN cancel when you like, without any penalty.

STUDENT_2-2

Jason, all new loan taken out in may/june 2005 are no longer allowed to penalise customers on redemption. Check out the banking code website for more info. We've just received all our training on it!