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Cancelling Insurance on a Debt -DMP Creditor said No ??????

Hello Fellow DFW's

I need to pick your brains please!

I am cancelling the insurance part of our loans with our creditors as advised by Payplan. This will help the amounts owed decrease quicker - makes sense seeing as it was to pay them if I was out of work cover etc.

There were only two loans which had this cover and I have had opposite responses:

Nationwide - Sent me a chq for £1370 even though I am half way through the loan and just entered into the DMP with them.

Alliance & Leicester - Said no I can't cancel as I am in arrears (I have made a token payment and they have had the first payplan instalment as well). They said it was agreed as full term of the loan and so as I am in arrears they can not possibly cancel the insurance.

Can A&L do this?

Also I am scratching my head as to why I have had a chq from Nationwide? The money will be thrown at the debt if it is rightfully mine.

Has anyone exerienced this before?

Ohhhhhhh its never straight forward is it!
This discussion has been closed.
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