£62 a month PPI

snakey_2

friend of mine has decided to take £14000 loan or so to consolidate her debts. she has borrowed over 5 years. This is with HSBC and has been offered 9.9% apr. However with this HSBC insisted she must have the PPI. Her payments are around £355 a month...but £62 of this is PPI! She has 30 days to cancel the PPI as of Friday just gone. I have insisted she does cancel the PPI as this is alot! However she is concerned about doing this....what are her options? Any ideas?

Many Thanks

sabelu

https://www.freeinsuranceuk.com will insure her for a LOT less £18.56 pm.

Justin_Credit

Wow, that's a mighty £3720 in PPI charges over the 5 year term, money that would be far better spent on reducing the current debt.

For any help or advice on her options perhaps, with her permission, you could post details of her current debts, the amounts and the APR's. Then some of the regulars, who are far more experienced than I, would be able to offer some alternatives to the consolidation loan route.

Regards

JC

snakey_2

sabelu wrote:

https://www.freeinsuranceuk.com will insure her for a LOT less £18.56 pm.

thanks for this...just looking into it!

snakey_2

Justin_Credit wrote:

Wow, that's a mighty £3720 in PPI charges over the 5 year term, money that would be far better spent on reducing the current debt.

For any help or advice on her options perhaps, with her permission, you could post details of her current debts, the amounts and the APR's. Then some of the regulars, who are far more experienced than I, would be able to offer some alternatives to the consolidation loan route.

Regards

JC

tell me about it but she wont listen. Thing is now she has signed n agreement for the loan, but they have told her she has got upto 30 days to cancel the PPI. Also with her cred rating I would be surprised if anyone else gave her credit!

Many thanks for your time!

JULIE

We're in the same situation with HSBC too :mad: Hubby went into the branch to cancel the PPI and was told that he would have to cancel the existing loan then reapply for a new one, which seems bl**dy risky to me as what would happen if they refused us on the second application they've got us over a barrel

cheeky

Is it in the terms and conditions that if you cancel the insurance in the cooling off period, they can cancel the loan?? Or the loan is only valid if you take on the PPI??

JULIE

no... but now we're just outside the cooling off period....we took it out thinking it would be a good idea (it was hubby that actually spoke and arranged it all) then I read :money: Martin's book about PPI and equally shocked when paperwork came through with breakdown of interest etc etc...when hubby initially phoned to cancel I think it was a day or two outside the cooling off period(which admittedly isn't their fault),that's when they told him to go into the branch..in turn telling him he'd have to cancel the whole lot and reapply....mind you I personally think it's a bit cheeky expecting people to make a decision in seconds over the phone... still I s'pose that's our fault for applying over the phone...and my fault for reading martin's book and becoming more savvy.... if I hadn't then we wouldn't be so bothered about cancelling.... oh what to do