PPI. Halifax won't let me cancel it!

downandout!

Hi folks,

I have an unsecured personal loan with Halifax. I took out the loan in Feb 02 and have been paying about £190 per month since. Since discovering this site I have been trawling through all my debts and I have found out approx £27 of the £190 is PPI. I phoned Halifax Insurance in Ireland (damn 0845 number) and was told they couldn't cancel it over the phone, so I would need to go to my local branch and cancel it from there. I went yesterday morning to the branch and was told I couldn't cancel it as it can only be cancelled within the first 30 days and the only way to get rid of the PPI is to take out a new loan. I went back and called the damn 0845 No again and the gentleman on the other end said I could cancel it at the branch and if I had any further probs I was to tell the bank to deal direct with them. I went back to the bank last night and they said they cannot cancel it and called the Insurance who agreed and said I do need to take out a new loan to get rid of it. Trouble is, I tried to get a loan from them before xmas and was declined.

Anyone have any ideas of how I can get rid of this PPI as it is a waste of £27 a month and I still have about 16 payments to make.

Thanks in advance

downandout!

Rafter

downandout,

That far into the loan their is no automatic cancellation right unless you can get them for misselling because you are self employed or not covered by the payment protection insurance for some other reason.

I suggest you get a settlement value from them for cancelling the loan early.

You still have £3040 left to pay on the loan (16 x £190)

If you have a good credit rating, you should be able to fund repaying this loan either through 0% credit card offers or through a flexible personal loan (it needs to be flexible because you will be paying it off in 16 months and don't want an early settlement penalty)

If you can do it using 0% cards, as long as the settlement value is less than £3040 you will be quids in.

If the best you can get is a flexible loan at around 8% APR and you pay off over 16 months as long as the settlement value Halifax offer you is less than £2880 then your payments should be less than £190 per month and again you will be better off over all.

Good luck.

R.

MarkyMarkD

But if you cancel the loan, you won't necessarily get any rebate at all on the PPI - or, if you do get a rebate, it is very likely not to be proportionate.

So it may not be worth cancelling and refinancing in any case.

PPI on loans is a single premium for a single risk - the whole length of the loan - and it's not necessarily eligible for any sort of refund on early settlement.