Cancelling PPI?

Bunnie1982

In a bid to save a bit of money I am considering cancelling my PPI on my Natwest Loan.

Currently I pay out £208.95 and I know that if I cancel the PPI it would take the payments down to around £174.

The Loan should be finished in 2010. Would it be too risky to cancel the PPI?

jonesMUFCforever

Have you searched the Internet for an alternative product or would you have enough funds to pay off the loan if you were made redundant or off sick for a considerable time?
You may also have to have the loan unravelled and the bank may impose a higher credit interest on a new loan depending on your credit rating now with the bank ,compared to when you took the loan out.
What is your opinion of the risk?

netscape22

Hi,

New to this forum, went to Halifax yesterday to cancel my PPI and as previous poster had said, they looked at my monthly payments and advised that taking insurance off would INCREASE my monthly payments as they would offer a high interest rate.

Left me confused that it would go up that much, have sent letter of complaint in but not sure how far if any where that will get me!

netscape22

Hi,

New to this forum, went to Halifax yesterday to cancel my PPI and as previous poster had said, they looked at my monthly payments and advised that taking insurance off would INCREASE my monthly payments as they would offer a high interest rate.

Left me confused that it would go up that much, have sent letter of complaint in but not sure how far if any where that will get me!

clydeman

Follwing Martin's slot on ITV's Tonight prog (12/01/07) on PPI. I have a loan with Northern Rock. I pay £129 pm including PPI (APR 5.9%). When I phoned NR today the settlement figure for the loan is £7825.94 (the full amount with PPI is £12,579)

I told them I wanted to cancel my PPI. I was informed that I would have to take out a new loan and that the new APR would be 11.9%. This would mean me paying £125 pm without cover.


Can they do this or should I just be able to cancel the PPI on my existing loan.


Thanks for reading



clydeman

domesticgoddess

I've been told something similar, that I have to take out a new loan, despite NEVER receiving any information from Pinnacle with my policy details, I have no recollection of ever being told that if I took out PPI that I could not cancel

I need to cancel this as it would take 6K off my loan with them. I don't even remember agreeing to the PPI but I did sign the forms, I don't belive the form was clear, but this was over 2 years ago and I really needed the loan. I'm more aware of what I'm doing now and I'm quite sure that I would not have agreed to something which I would not be able to get out of.

I've been told that the policy is a single premuim policy, is there a way out of this?

What is your next step?

clydeman

domesticgoddess wrote:

I've been told something similar, that I have to take out a new loan, despite NEVER receiving any information from Pinnacle with my policy details, I have no recollection of ever being told that if I took out PPI that I could not cancel

I need to cancel this as it would take 6K off my loan with them. I don't even remember agreeing to the PPI but I did sign the forms, I don't belive the form was clear, but this was over 2 years ago and I really needed the loan. I'm more aware of what I'm doing now and I'm quite sure that I would not have agreed to something which I would not be able to get out of.

I've been told that the policy is a single premuim policy, is there a way out of this?

What is your next step?

I made my loan application to NR over the phone. At no time do I recall being told that if I cancelled my PPI it would involve re-aaranging the loan. I didn't read the small print either when the paperwork came through (who does!!).

Is there any possibilty of claiming compensation as we may have been mis-sold?

Thanks

jonesMUFCforever

The CCA sets out rules for lenders and borrowers to which both sides must adhere to.
The lender sets out how much interest they will charge and at which rate, and the monthly repayment you have to make.
Once the CCA is signed neither side can alter the details.

So if you want to re-arrange the loan by cancelling the PPI you are breaking your side of the agreement, the only way for most lenders to agree to this is to refund you a proportion of the premium and starting a new loan for the outstanding amount.
I can't see how you can claim compensation for something you signed where the terms and conditions of that agreement would have been in front of you!

You didn't read the small print - well now its payback time - hope it is a lesson well learnt.

regularsaver1

Although it is a FSA regulatory requirement when selling loans to inform both verbally and in the terms and conditions that there is a cancellation period for insurance - ie 30 days,

I have not heard of a requirement that states you have to go into detail (verbally) about applying for new loan ect

I know that Halifax honour same interest rate on new loan if the PLRC is not wanted during first 30 days - new loan still needs to be done as it is a fixed rate contract. After that, it is subject to application