LLoyds ppi

arcadia1980

I don't think I am able to claim back my ppi on my lloyds loan by what i have read but is it still possible to cancel it with Lloyds with no risks?

jonesMUFCforever

Have you asked them?

mrmajika

arcadia1980 wrote: »

I don't think I am able to claim back my ppi on my lloyds loan by what i have read but is it still possible to cancel it with Lloyds with no risks?

You are able to cancel the protection on your loan at any Lloyds TSB branch. The policy on this changed in January this year to allow customers to cancel the protection at any given point.

The loan would be refinanced over the remaining term at the same APR and with no settlement or penalty fees. You would get a rebate of the unused portion of insurance, provided that you have not made a claim on the insurance.

You ask about 'no risks'. I'm unsure what you mean by this. Arguably, removing the protection carries more risks than having it there in the first place.

arcadia1980

ejones999 - I did ask them but it was last year they said no

mrmajika - Thanks for that info will go down there tomorrow. the risks i mentioned were more about picking up a hidden charge for doing so, i should have made myself clear.

arcadia1980

forgot to ask because i got the loan in 2006 does this change still apply to me?

mrmajika

arcadia1980 wrote: »

forgot to ask because i got the loan in 2006 does this change still apply to me?

That won't matter.

arcadia1980

Just before I go down there, is there any chance they can say no the the 'new' loan and screw me over.

mrmajika

arcadia1980 wrote: »

Just before I go down there, is there any chance they can say no the the 'new' loan and screw me over.

They should not say no as the new policy allows any cusotmer to cancel the protection. Whether you run into problems or not is luck really, dependant on how clued up the individual staff member is.

Good luck.

arcadia1980

I got a chance to go down there and was told by cancelling ppi i would not save any money as i would be penalised for paying my loan off early. Is this correct?

mrmajika

arcadia1980 wrote: »

I got a chance to go down there and was told by cancelling ppi i would not save any money as i would be penalised for paying my loan off early. Is this correct?

No it's not. Whoever you spoke to is mis-informed. You are now, as of January 2007, allowed to cancel PPI, so long as you have not made a claim, and get a pro rata refund of the unused portion.

The early settlement and associated fees should be waived and the branches should be familiar with the process for doing this.

jonesMUFCforever

I agree that you can cancel the cover.

I don't agree with mrmajika that you would not be charged an early settlement fee if this meant closing the old loan.
As far as I am aware even if you open a new loan to close an old loan an ESC is levied.