Cancel PPI now or wait till i get money back

fedupofbankers

I have still got two loans that i am currently paying off each month and i was wondering is it best i cancel the PPI off them now to save me money now or continue paying the regular amounts and when the FOS and banks come back with my redress for both loans get it back.
Getting rid of it now would help me out financially now but i dont want to rock the boat any more than i already have.
Thanks in advance.

marshallka

If you cancel the PPI now I doubt you would see much difference in the repayments if these are single premiums and you are far into the loan as you still have the interest to pay on these little is rebated back.

There is the chance also of losing which is slim if you have good reasons for a missale and also you have to think that if they do dismiss the complaint FOS has a long queuing system at the moment. Its entirely up to you though and if you feel it would be beneficial now it will not harm your complaint.

amersall

DO NOT CANCEL THE PPI!!!!!!!!
if you have reasons for mis sell and you put a complaint in and win, then the total ppi is taken off your loan balance and your monthly payment reduces by the ppi monthly amount. You get the ppi back you have paid to date with interest and the loan is reset at the rate it was originally.

If you cancel the ppi you will have the loan reset at a higher apr and sometimes longer term.

marshallka

amersall wrote: »

DO NOT CANCEL THE PPI!!!!!!!!
if you have reasons for mis sell and you put a complaint in and win, then the total ppi is taken off your loan balance and your monthly payment reduces by the ppi monthly amount. You get the ppi back you have paid to date with interest and the loan is reset at the rate it was originally.

If you cancel the ppi you will have the loan reset at a higher apr and sometimes longer term.

I would think that would be another complaint if they reset the loan at a higher APR? Are they doing this now as they used to be told they had to rearrange the loan at the original term and APR if it was a missale. Really would not suprise me though Amersall. Then they wonder!!!!

fedupofbankers

Hsbc has told me that of the £272 p/m £50 of it is PPi so if i was to cancel the PPI the payments would be reduced to £222.
It has made me think though that HSBC were trying to get away with something as all the time during the complaint they have been asking me to cancel PPI and they would restructure the loan.
Guess its just a sit and wait now. Out of interest would be interested to know if the speed of the banks paying out has actually increased now. Especially as they are getting charged 8% p/m interest.

marshallka

fedupofbankers wrote: »

Hsbc has told me that of the £272 p/m £50 of it is PPi so if i was to cancel the PPI the payments would be reduced to £222.
It has made me think though that HSBC were trying to get away with something as all the time during the complaint they have been asking me to cancel PPI and they would restructure the loan.
Guess its just a sit and wait now. Out of interest would be interested to know if the speed of the banks paying out has actually increased now. Especially as they are getting charged 8% p/m interest.

If £50 a month is going towards your PPI and you cancel it you will not see your repayments reduce by £50 a month because that is the problem. Your PPI was another loan to pay a single premium (which I assume yours is) over to the insurer in one lump sum. You then have a loan of whatever the PPI premium was and although repayments on that loan mount to £50 a month they will not reduce by that because interest is also charged on the PPI loan for the full term. They were a total rip off. Something you obviously did not understand from your comment above.

Have no idea of the speed of the PPI complaints with banks. I would think they would not be bothered about the 8% interest they are paying you, they are probably making quadruple and more on YOUR money in the firstplace.

amersall

marshallka wrote: »

I would think that would be another complaint if they reset the loan at a higher APR? Are they doing this now as they used to be told they had to rearrange the loan at the original term and APR if it was a missale. Really would not suprise me though Amersall. Then they wonder!!!!

This does happen when you cancel the ppi (as the op did), they have to redo the loan without ppi and when they do that they tend not to give you the same apr you had previously, how crafty is that?.More money in their pockets.
A mis sell is done just as you say.
A cc is different, as this goes on monthly, so to cancel is beneficial to you.

mr2jay

OK, slightly confused now.....

I am assuming that PPI on a credit card is slightly different as that is an ongoing loan - ie there is no fixed time scale?

Therefore, cancelling the PPI would be a different case as that WOULD reduce the monthly payments by the amount they are charging?

Sorry, complete noob to the inner workings of banking systems

marshallka

mr2jay wrote: »

OK, slightly confused now.....

I am assuming that PPI on a credit card is slightly different as that is an ongoing loan - ie there is no fixed time scale?

Therefore, cancelling the PPI would be a different case as that WOULD reduce the monthly payments by the amount they are charging?

Sorry, complete noob to the inner workings of banking systems

Cancelling on a credit card would always reduce the payment by how ever much you are paying now. Its a standalone payment and not got interest on it.

mr2jay

marshallka wrote: »

Cancelling on a credit card would always reduce the payment by how ever much you are paying now. Its a standalone payment and not got interest on it.

Hmmmm - OK, I think I get it......

However, the premium is added to the balance on the CC so surely it is subject to the interest rate of the card?

marshallka

mr2jay wrote: »

Hmmmm - OK, I think I get it......

However, the premium is added to the balance on the CC so surely it is subject to the interest rate of the card?

I have no idea but I do know that a credit card PPI is cancellable and that is it. If you then claim it as missold you would get back (or should get back if you win) whatever it actually cost you in the meantime (interest that you paid over the time) but it would be better to cancel first I would say.