Nationwide Payment Protection

briangilmour

I have a loan with 43 months left on it, it was taken as a 5 year loan of £11,840 and the Total Ammount Repayable is around £16800 .
What i'm wondering is if it's possible to cancel the Payment Protection plan , I don't feel I need it and would like to remove it if possible. I've read through my Terms and Conditions etc but there doesn't seem to be any mention of it.

Is it possible?

jonesMUFCforever

It may be possible but Nationwide may also have to open a new PLN to unravel the insurance from old one.
There is no guarantee that they will offer you the same rate for the new loan + they might charge you an early settlement on your old loan.

memero13

After I paid back an existing loan to my bank,(15K),I DISCOVERED THEY HAD CHARGED ME THOUSANDS for the payment protection on the loan.Even though I had been paying the payment protection every month,why did the bank charge me so much more at the time of early repayment of the loan?

jonesMUFCforever

The payment protection would have been lumped to your capital amount to give you a loan amount + protection.
You would have been charged interest on both parts.

If you had made a claim on the insurance before paying it off then no refund (or part refund) of premium would be payable to you.
If you had repaid the loan early a proportion of the insurance premium would have been paid back to you (or credited to the loan to bring the closing figure down).

All this would have been clearly on your CCA agreement which you would have had to sign before the loan was opened.