have i done right thing re-- ppi

stopthespends

hi all

i have just took a 7k loan out over 4 years with nationwide inc ppi which takes my payments up by £21pm.... i dont really understand if i have to have theirs or if i can get one independantly...also where do i get one from and how much are they generally


thanks

p.s i get paid 6months full pay for illness etc then 6months half pay if that helps

Tomarse_2

If you've taken out the loan within the last 2 weeks then CANCEL THE PPI NOW!

Lenders are very sneaky about including it (often illegal selling practices) as they recieve points/commission. The rates they charge for it are crazy and they often imply that you will only get the loan if you take out their PPI. Now that the loan has been accepted, you can legally cancel it (during the cool-off period) and not be penalised one penny.

I used to work in PPI for a major bank and it's so corrupt and immoral that by procedure, anyone trying to claim with my job was automatically given what's effectively suspicion points and monitored closely.

If you try to cancel the PPI later, they'll use a "rule of 81" to sting you for "admin fees" (sound familiar?). Depending on other circumstances (I can go into detial if needed), you may end up paying more if you cancel PPI too late.

Take it out with someone else if you really think you need it but read all of the small print VERY carefully as 90% of the time, the policy's !!!!!!!! and people only realise this when they depend on it.

stopthespends

thanks you for the reply... i will call them first thing tomorrow and cancell it

thanks agaain

stopthespends

hi

ive just looked at what i could take out as individual instead of with the nationwide and in order to cover what theyve offered it will cost the same amount... am i doing something wrong or jst being thick!!! help please

jonesMUFCforever

I'm not saying cancel or not to cancel but you have to have something in place to cover your repayments in the event of an illness or redundancy.

If you have the means to be able to cover the loan payments - great, if not consider the consequences.

Yes I work for a bank.

Sun101

Hi,
Over the last few years when I thought my job was for life :rolleyes: .. I went through the process of cancelling PPI on some of my cards, didn't add it on to a largish loan.. because I thought it wasn't worth the additional expense, based on what I had been reading. Well my job for life dissapeared :eek: .... and I found that I hadn't cancelled the PPI on everything.. and thank goodness for small mercies. I can relax knowing that my payments are being taken care off. Had I not cancelled the ones I did, or at the very least put something else in place .. I would now have relative peace of mind on the repayments on those too.

:cool: S.

djwolf

I suppose it's Catch 22. PPI adds a fair bit extra onto the loan repayments and it has a lot of loopholes. I'm actually under the impression it benefits the company more than the consumer as it guarantees they will get their money. Then again if you don't take it out you definitely won't get any cover at all and payments will still be expected. Difficult one, I have PPI on my current loan but probably wouldn't bother again.

firesidemaid

you can get ppi independently from many insurance companies as folks have mentioned on here before, although i have never done it.

have a search on the forum for something like 'cheap ppi' or 'independent / stand alone ppi'. it will be much cheaper to do it this way.

rabbit_burrow

You are better off getting income protection insurance or something similar. I used to work in a bank (I won't tell which, they are all the same anyway), and they all know what a rip-off their ppi is. The reason why the staff try sell it is because they get a higher point towards their weekly targets. For example, a 7K loan might give something like 100 points without ppi(i can't remember exact amount, it was over 12 months ago), but 7k with ppi you would get about 250 points. They sell ppi because it helps give them a bonus (get your targets, get your bonus).

PBA

PPI is like any other insurance, it's a rip off if you don't have to claim but a godsend if you do. It can look expensive, especially compared to the fact that the loan could be paid off quicker if you weren't paying the PPI as well every month, but you should make sure you have cover (not necessarily the PPI, separate policies are available or possibly family who would help you out in hard times).