Abbey (national) Loan PPI £45p/m

JMU-95

Hi, after reading Martin's books and some of the threads on this forum regarding PPI I decided I would cancel the PPI on my Abbey Loan. The payment protection is currently approximately £45 per month on top of the premium.

However........ the insurance dept at Abby told me that if I have to make a claim for PPI as long as I have proof that I have a valid claim Abby will pay the monthly premium for as long as I am off ill and not just for twelve/eighteen months.

Does this sound ok. I'm slightly confused now. Should I go ahead and cancel the PPI or not?

Thanks for any advise.

JMU

BigDunc

How long is the loan for? It's unclear why you mention 12/18 months in your post.

JMU-95

sorry the loan is for £17000 over 7yrs. I menioned 12/18 mths because i was under the impression most ppi plans only pay out for a maximum of either 12/18 months.

MarkyMarkD

OK, fair enough. But most PPI on personal loans isn't cancellable anyway, or if you DO cancel it they will levy a heavy-duty penalty. Did you check the situation with this, or were you diverted by their attempt to demonstrate the benefits of the cover.

You also state that they'll pay the PREMIUM for as long as you are ill. What about the loan repayments?

JMU-95

no, they definitely said the loan repayments would be paid each month. The lady on the other end of the phone said it was just a matter of writing a letter asking to cancel the PPI. She didn't mention any penalties, but then again I didn't ask about that. So - a phone call again this morning to check this out. Thanks for the reminder!