Can I Cancel My Loan Cover???

kittykat85_2

I took out a loan mid last year and I foolishly also signed up for the cover. After recently trying to sort out my finances and being awarded a permanent contract at work (Which means I get 6 months Full Pay and 6 Months Half Pay when I am ill) I worked out how much extra it is going to cost me over the term of the loan.

I would appreciate any response. Thank You!!

WH39

hi

i think in many cases you can cancel the loan guard cover on your loan, check your t&c, who is the loan with.

kittykat85_2

Thanx for the reply.
I have read the T&C but to be honest i dont understand them as they are quite hazy. The loan is with Abbey and the cost of the cover was built into the loan for some reason and I pay interest on it. Hope you can help.

mccafferyna26

Hi there,
Did you get this sorted? I am currently trying to cancel mine with Black horse finance and they have said a simalar thing and my payments will go up.
Nina

kittykat85_2

Nope not sorted yet! I want to get as muh info before I challenge them! Did you say the black horse said that your payments would go up if you cancelled the cover?

PBA

Cover on an Abbeyloan is paid up front and then added on to the loan. You've effectively already paid a lump sum for the cover so cancelling it wouldn't get you anything back.

scotsgirl_3

mccafferyna26 wrote: »

Hi there,
Did you get this sorted? I am currently trying to cancel mine with Black horse finance and they have said a simalar thing and my payments will go up.
Nina

That is very very strange - I'm not saying it's impossible but personally never seen someones payments go up when PPP is removed from their account - and I work at Blackhorse( ducks to avoid any low flying objects, i'm not horrid honestly!)

I would ask for a breakdown of how this figure is calculated - are you dealing with a local branch of Blackhorse - i.e one of their finance centres? If so remember these are very sales focused so check that they aren't doing something dodgy like settling the old loan into a new one and maybe changing the apr in the process - if they ask you to sign anything check the agreement numbers. Sadly it does sometimes happen.

It is perfectly possible to simply remove the ppp from your existing agreement and this should not increase your payments. I would be tempted to write to the head office down in cardiff requesting cancellation and asking how much they will refund.

kittykat85_2

PBA wrote: »

Cover on an Abbeyloan is paid up front and then added on to the loan. You've effectively already paid a lump sum for the cover so cancelling it wouldn't get you anything back.

Would cancelling it do any good at all? Would it reduce my monthly payments or the amount I owe back to them? or am I just stuck with it now?

Chef1980uk

PBA wrote: »

Cover on an Abbeyloan is paid up front and then added on to the loan. You've effectively already paid a lump sum for the cover so cancelling it wouldn't get you anything back.

Can you post proof of this as i havn't read it anywhere on here that that is the case. I noly ask as i'm also in this position of having the ppi as a loan.

mccafferyna26

Thanks for that is a great help, they have told me that they have paid it up front and beacuse im cancelling i owe them, they also told me that when i was out of work and fell behind they have added late charges onto the end of my aggreement even though ive payed my arrears and that they are now being added on because ive cancelled my pp, is this true?
Thanks again

mccafferyna26

Yes they have told me that because they pay it upfront i owe them money because im cancelling and they are not budging on this at all.
Nina