We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Cancelling PPI
Having watched someone on BBC news this mornning talking about how you should never buy PPI with your loan I went online and found I could be paying £3.50 instead of £23 for my loan with Northern Rock. So I rang NR to try to cancel the payment protection and was told they would need to take me through a whole new loan application process, credit scoring, etc, which could then (in theory) result in the loan being refused or offered at a higher interest rate. I don't want to do this (a) because I have just moved house and am not on the electoral register at the new house, and (b) because my debts now look worse than they are because of stoozing (the loan from NR was for a car, but I actually paid for the car on a 0% credit card while I put the loan money into a fixed-term savings account until the 0% deal ran out).
I can't find anything in the paperwork that says that cancelling the payment protection insurance will result in a new loan application. Has anyone else had experience of this, or of getting out of PPI schemes?
I can't find anything in the paperwork that says that cancelling the payment protection insurance will result in a new loan application. Has anyone else had experience of this, or of getting out of PPI schemes?
3-6 Month Emergency Fund #14: £9000 / £10,000
0
Comments
-
The paperwork is called the Consumer credit act agreement which you and NR both signed and agreed to adhere to.
To break this agreement then yes I think NR are right in what they say and it is their policy to unravel the loan and start again. This means your new loan will be against your credit file/score now and not when you took out the loan.0 -
£3.50 - what does it actually cover you for?0
-
From what I can see it offers the same kind of sickness / incapacity / unemployment cover as my current PPI. The loan repayment is £135 per month.regularsaver1 wrote:£3.50 - what does it actually cover you for?3-6 Month Emergency Fund #14: £9000 / £10,0000 -
Yes but how long do you have to be off work for and how long will they cover you for??0
-
Could you post a link to that insurance?0
-
http://www.securityfirst.co.uk/loan-payment-protection-insurance.aspLaurenbelle wrote:Could you post a link to that insurance?
You have to be off work for more than 30 days to claim, and they will pay out for a maximum of 12 months.3-6 Month Emergency Fund #14: £9000 / £10,0000
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards