Can we cancel our PPI?

Madjock

We have a secured loan with Black Horse. i was adamant from the start that we didn't want PPI, but fell into that trap of being suckered into agreeing to have it, to get a slightly better interest rate on the loan. Can we cancel the PPI? It costs us £50 per month on a £208 payment. I'm diabetic and my hubbie has high blood pressure and a history of depression. I can't believe i got suckered into payment insurance after being burned many years ago with finance taken out with Tempo.
Can we ask to cancel it, will they (can they) change the rate we are on?

mrcow

Best to call and ask them, but from what I recall of Black Horse, it may not be worth your while as the PPI is charged to the loan at the start (that way they charge you interest on it too....double whammy).

We saved money by refinancing and paying the extra £50 as an over payment thus paying off the loan earlier.

I'm pretty sure they won't just cancel the PPI and drop your payments by the premium though. Good luck.

Benny21

A CAB in the Midlands had a client who had taken PPI with three lenders. These would not pay out because the client was unable to work due to mental health problems. The client was led to believe by the sellers that they would pay out in the event of her becoming ill and unable to work The client states that the exclusion of mental health was not pointed out to her at the time the PPIs were purchased. The client has depression which is being compounded by her inability to pay her debts. Had the PPIs paid out some of her debt problems would have been eliminated.


A CAB in London reported a client who was a lone parent with children and had been mis-sold PPI when she entered into a credit agreement. The loan was offered to the client, even though she made it clear that she was unemployed. Payment protection insurance can cover repayment of certain credit agreements, but as client was not employed at time of taking out the policy, she is not eligible for cover. Client was paying payment protection insurance premiums by instalments which are included with the normal repayments of the loan. Problems arose when the client tried to make a claim because the policy is invalid. Client was ineligible when she first took out the policy, therefore, she now needs to request the insurance company to cancel the policy and refund the premiums.

scotsgirl_3

you can cancel -it has to be requested in writing though.

when it comes to the interest it does depend on your loan but all the secured personal loans i have seen with blackhorse are monthly added interest - so basically the interest is calculated monthly like it is on a credit card, depending on the balance. so if you get the ppp removed then the balance goes down...you get the picture

legally they do have to cancel it if requested as long as you haven't atempted to claim - you might not get the whole whack back, depends how far in you are, but you'll get a proportional amount

hope this helps

Rafter

You have a strong misselling case against them in my view.

If you were told that getting the best rate was dependant on taking the PPI then they are certainly in breach of advertising and other regulations.

The PPI is for your benefit, not theres. The loan is already secured on equity in your house and they will have credit checked you. These checks dictate the interest rate you should be offered, not whether you take overpriced insurance that will earn the salesperson and the bank loads of commission.

As others have said if you cancel you are unlikely to get much back. With a misselling claim though you should get back the premium and all the interest you have paid on it.

Very good luck.

R.

scotsgirl_3

Hi Madjock

I didn't see the bit about the interest rate first time - this is completely wrong. write a letter explaining circumstances, what you were offered, and stating that you want the payment protection cancelled " from the inception date" - they CAN do this

I would also suggest that you do not send the letter to the branch but to the head office in Cardiff