Cancelling loan protection

andy_d_4

I have a personal loan with Northern Rock and i pay the protection ( insurance) but realise I do not have any benefit in having it. I've contacted NR to cancel it but they've also made me cancel the loan & reapply for a new one ( not what I wanted). They have agreed to honour my % rate but I've had to extend the loan period by one month. Is this correct or should they have just cancelled my loan protection & leave the original loan in place? I've read their T & C's and it doesn't say anywhere that I have to cancel the loan & reapply to get my protection cancelled. Any one have any info

mrnomoneybags

I had the same issue with A&L they done me a whole new loan app and then refunded the first payment with loan protection and i started over.

No Extra intrest

monneyspinner

cancelling ppi on a loan is different to doing it on a credit card. The agreement forms you sign prior to the loan being drawndown will be incorrect and the monthly payments need to be re-calculated. this is correct procedure.

No-one thinks they need ppi, luckily it is insurance and there should you need it. Before cancelling I would advise you ask yourself the following question 'How would you maintain your existing lifestyle and your payments should your circumstances change, and what would the impact of that be on your family life?'

andy_d_4

Thanks for your response to my query...Do I understand you correctly that the proceedure I am having to go through ( cancelling original loan & applying for a new one) is the correct procedure.
Thanks also for your advice re cancelling & I am aware of pitfalls but I have other payment protection in place so theirs is not needed.