cancel PPI with A & L

steveoo_2

Hi all,

I'd like to know if it's possible to cancel the PPI (personal protection Insurance) I currently pay with Alliance & Leicester.......I have a £5000 loan and have been paying £139 per month for the past year or so....(48 month loan) If I cancel the PPI I will save £19 per month....I really could do with this saving as A. I find it useless at the present moment and B. just bought a new car with a 3 year 0% deal on the remainder owing (£131 per month)....so, I could really do with saving that £19 per month to help pay for the motor.

Is this cancelling procedure easy and what tips can anyone offer me when I call them?

As an aside the loan with A&L is 7.4% I know this isn't great nowadays and was considering finishing the loan with them in favour of a loan from my own bank (Smile) at 6% for a £7000 loan....to pay off early the A&L loan (costs?) and also for a much needed holiday in the States next year....what the hell should I do?

Cheers
Steve ???

System

I don't know A&L's procedures but I used to have a loan with the Halifax and they wouldn't let you cancel the PPI. You had to apply for a new loan to pay off the other that had the PPI and that meant a 2 months interest penalty and they also required that the new loan was for £1000 (I think that's the correct figure) more than the original loan's settlement figure. They were getting you in all directions especially as borrowing more usually meant you were paying approximately the same as with the PPI. I would check with A&L and if they're the same go elsewhere.

steveoo_2

Thanks for the reply Pam.

I called A&L who said there were no restrictions in me cancelling the PPI, so I have, easy as that with no penalties...although the second person I was passed onto did try awful hard to change my mind.

As to increasing my loan and extending repayments A&L are just to expensive as compared to my own bank, Smile who give a much better rate at 5.9% so if I decide I really need that holiday it will be Smile I'll be dealing with in the future.