Ppi

B2B-2008

I have a £22000 loan which I have had for just over a year, because I used their PPI I haven't even started paying the loan amount off yet. The surrender value of the loan now stands at just over £22000. I want to pay this loan off as quick as possible and my bank have offered me a better rate than I am on at the moment. This will also reduce the amount of years to pay off the loan. The thing is my bank charge a fortune for their PPI, is there anywhere else I can get this cover?

ArchieB_2

There are a number of independent providers including the Post Office, Ant Insurance, British Insurance and Paymentcare. Alternatively you may want to put the money towards Permanent Health Insurance form an IFA.

Rafter

The banks use PPI to make big profits on loans. In fact in order to make money on loans below 6% APR you have to sell more than 50% of customers ppi which will more than double the effective interest rate you pay!

I suggest you apply for the loan with PPI and then cancel it during the 14 day cooling off period. Your bank won't be happy but there is nothing they can do and they can't legally withdraw their loan offer. The insurance is for your benefit and not theirs.

As ArchieB says you can get insurance much cheaper direct. Moneysupermarket have a comparison service on their site I think which might be a good place to start.

I could save 80% off insurance going direct than paying the rates offered by supposedly 'good value' banks like Northern Rock, Alliance & Leicester and Halifax.

'Halifax gives your more charges and overpriced insurance for sure' and for a few pennies extra off your interest bill!

R.

B2B-2008

Thanks for your help. I will take a look on moneysupermarket and see what they come up with.

Sausage_Roll

Also, check out this thread - you might be able to claim back all your PPI payments made so far.

Avogirly wrote:

I would just like to thank everyone for their advice regarding my payment protection.

I have a loan with Lloyds TSB, and just like everyone else, when I tried to cancel the PPI I was told I couldn't because of the loan being over 30 days old.

However, I came on this forum and read up about cancelling the PPI, PM'd a few people and got a great template letter (PM me if you would like a copy). I wrote to them last week, and low and behold when I checked my loan balance today I've been credited back the WHOLE insurance amount.

Martin :money: , MSE and all you wonderful people have saved me £5000.

I cannot thank you enough.

Edited to add the template

Complaints department

Bank's name & address



Re: account 999999999999999999999





COMPLAINT



Dear Sir or Madam,



I took out the above loan for £x,000 on dd/mm/yy. When I took it out, I signed up for Payment Protection Insurance. I phoned up on dd/mm/yy to ask to cancel it and was told that this is impossible. I am writing to complain.



Put in any of the following which apply:



[When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do. I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]



[I am self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick. My situation was known to the person who sold me the loan, however he/she did not point out that the insurance was virtually useless to me so I think that I have been mis-sold the insurance.]



[When I took out the loan, I said I did not need the PPI as my employer provides generous illness and redundancy benefits, but I was told I should still take it out. As this is not correct, I consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]



[I wish to cancel the PPI because since taking out the loan, my employment situation has changed. I am now self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick.]



[I wish to cancel the PPI because I now have sufficient alternative insurance cover from my employer and other sources.]



[I wish to cancel the PPI because I am in financial difficulties and cannot afford it. I enclose a Statement of Affairs which shows this.]



I have been advised that I should be able to cancel the PPI contract at any time and receive a partial refund of the premium that I have paid. I would like to do this. [And in view of the way I was mis-sold the insurance, I would like to ask for a full refund of the whole premium.]



I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service.



Yours faithfully,





nb There is no reason why you have to be able to prove that you cant afford the PPI before you cancel it, so in theory you should not need to send an SOA. However, I think it helps because it puts the bank morally in an even worse position if their PPI is causing you hardship.



:T :T :T :T :T :T


I am a very happy person today!

Just off to change my signature!

regularsaver1

Should only complain about mis-selling if it was mis-sold for a genuine reason, notr because change mind

however, if you cancel look around like the OP said