Cancelling PPI before the 30 days are up?

Kefty

Hi Guys

I am at the beginning of my secured loan with Black Horse (documents not yet signed), so still in the 1 weeks grace from the initial meeting at one of their offices. I have the proposed credit agreement on a loan for 28,500 @ 11.4% APR over 10 years. This gives me a monthly payment of £390. In addition to this the PPI monthly payment is £69. I have decided that I dont really need the PPI as my employer offers critical insurance anyway. Also I expect to refinance this loan in 12 months at a lower % APR, when my credit rating has improved.

If I decide to cancel the PPI I assume I write to the provided cancellation team with Black Horse, or should I telephone? Also would the amount of credit for the PPI (£5078 + £3263 interest) be refunded to me as a cheque or would it be knocked off the total amount payable spread over the loan period, lowering the monthly payment?

Thanks in antcipation (this is my first post!)
Kefty

SuSu1871

Hi Kefty

I cancelled my loan PPI with LloydsTSB over the phone and they credited my loan account with the total PPI amount. Can't remember the figures now, but the loan was for around £19,000 and the PPI was about £100 a month. They add the total PPI to the balance of the loan, so interest was being paid on that as well :eek:

Like I said, they credited the o/s balance with the total PPI payments and they kept the monthly payments the same. This meant that the loan repayment period dropped from 5 years to about 3 1/2 years.

They might give you grief over the phone and try to scare you into keeping the PPI, but stick to your guns! Hope this helps.