RBS Loanguard Help.

GarageCat

I have only just found this site and have found it quite interesting, and as such i have two questions i would like help on if anyone can help me out regarding RBS Loanguard (PPI).

1): Last Oct i took a RBS loan out for £14000 to consolidate all my outgoings into one payment. As i already had an RBS loan at the time already, it was kind of a top up to my old RBS loan. Anyway, i was going to ditch Loanguard at that point, but the Customer Service Advisor told me that because of the size of the loan i was taking out, Loanguard has to be taken out with this loan otherwise without it i may not be acceped for the loan. Not knowing any better at that time, i foolishly stuck with Loanguard on this loan.
After reading into Loanguard and also this site, i am now aware that Loanguard (or PPI's) are only optional, and i am under no obligation to take such things on whatsoever no matter how big the loan i take.

So do i have grounds to reclaim my monthly payments to Loanguard back.????? And also how should i go about this.

2): Due to ongoing car problems, i had no alternative to top up my RBS loan again on Sept 11 this year, this meant in order o clear off other loan and allow me the extra i needed, i was taking out a new loan for £17500. Because of what i believed before i took on Loanguard again without any hesitation. However, when going through the motions to find out what the monthly repayments would be over 7 years, i was quoted £337pm inc PPI. When i decided to go for this, for some weird reason the repayments jumped to a whopping £367 and when i queried this sudden jump from the quote price, i was told it is the PPI adding an additional premium due o the size of the loan as it is taking into account of extra risk (surely this would have been taken into account at he quote stage). As i needed the money i bit the bullet and let the advisor fob me off about this extra £30.

A few days later, the £30 extra begain to bug me as i felt something was afoot (and not 12 nches either) and i ran searches for Loanguard in various search engines to find if others had encountered similar problems (that was how i found this site). In everything i read about Loanguard & PPI's, i began o realise they are just a big con and not worth the paper they are written on. As such i wrote a letter to my bank manager on the 17th Sept stating that i wish to cancel Loanguard and if there is any problems with this to get in contact. I also wrote again on the 21st to re-confirm my wish to cancel and this time enclosed the PPI schedule which upon reading said needed returned with a cover letter.

These two letters of cancellation were put in well within the 14-day/30-day 'right to cancel' period, and as my first payment does not come off until 1st Oct,these leers were put in well beore any payment for Loanguard gets deducted. However, i have had no correspondance back from the RBS whatsoever regarding the cancellation, and as such i'm sitting here wondering wether or not they are still going to deduct the Loanguard payment on the 1st Oct or not. I phoned up my branch yesterday (25th) to get clarification on the progress of my Loanguard cancellation and was told that it looks like nothing is processed as Loanguard is still active and due for it's first collection on the 1st. Annoyed, i e-mailed the main RBS office asking for confirmation and as such i am still awaiting correspondance from them.

The way i see it is, as i have put the letters of cancellation in well within the 14-day/30-day 'right to cancel' period, and also before my first payment comes out, if this is not cancelled and they take payment out then this is technically fraud in my eyes.

Can anyone advise me further in what i should do further here regarding this crisis.

GarageCat

Anyone?????

CLAPTON

Check the T&Cs and see whether its 14 days or 30 days cancelation period.

Phone them asap to confirm they have received your letter... if they say not (or maybe anyway) go in tomorrow and hand in a letter again.

GarageCat

Thanks for that, Clapton. Had been thinking about doing just that but i was not wanting to seem too pushy, but i guess this is what these people hope people like me will do.

It is 14-day cancellation for the loan (which i'm not cancelling), but 30-day for the cancellation PPI (Loanguard) as it states this both on the documentation and also on on the .pdf file on their website, viewable at http://www.rbs.co.uk/content/personal/loans/other_options/downloads/LoanGuard.pdf

My guess is they may be trying to delay things hoping that i will go away and accept the PPI, or that after the 30-day period they can try and bluff me by making out they have recieved nothing. May just hand in the letter tomorrow again, but also post an idectical one via recorded/special delivery which they cannot then say they did not recieve.

Am seriously considering claiming for Mis-sold PPI on the previous loan though, as thanks to this site, i now know that Loanguard was not compulsory and would not affect my acceptance of the loan, which i was told it *may* if i did not take it. Although before i do this though, i want to see what they do first regarding the cancellation of the PPI on this new loan.

towseriv

If anything a loan may be more acceptable to take on without loan protection sometimes as of could prove more affordable. This does not mean it is a waste of the paper it is written on or that it was mis-sold. Just because protection costs doesn't mean it is worthless

GarageCat

Very interesting indeed, on Friday when i checked digital banking the total 'borrowed' amount of my loan has decreased by roughly the 'Loanguard' amount and would therefor seem that RBS has cancelled 'Loanguard'.

However, despite the ammendment, and still no correspondance from the RBS stating anything, on checking my account today has revealed that payment for the loan has been deducted from my account together with the 'Loanguard' payment. Now i'm really confused as it seems i am still paying for 'Loanguard' despite it having clearly been cancelled before payment was collected.

Anyone any advice as to what is going on.????

jonesMUFCforever

GarageCat wrote: »

Very interesting indeed, on Friday when i checked digital banking the total 'borrowed' amount of my loan has decreased by roughly the 'Loanguard' amount and would therefor seem that RBS has cancelled 'Loanguard'.

However, despite the ammendment, and still no correspondance from the RBS stating anything, on checking my account today has revealed that payment for the loan has been deducted from my account together with the 'Loanguard' payment. Now i'm really confused as it seems i am still paying for 'Loanguard' despite it having clearly been cancelled before payment was collected.

Anyone any advice as to what is going on.????

You need to speak to the bank!
It may be that the loanguard payment is on its way back to you but you need to check this out.

Melly31

Just to draw your attention to this paragraph on your loanguard policy:
Termination of Contract
We have the right to cancel your Payment Protection policy by
giving you 7 days written notice at your last known address. You
also have the same right. We will go on paying monthly benefits
under the terms of the policy for any valid claim which is being
paid at the cancellation date.
This means that even after 30 days you can still cancel the Loanguard at any time giving 7days notice.
Have you tried ringing the complaints tel no on the loanguard policy?
0845 246 0461
If not i suggest you do & see if it gets you any further.
Hope this helps,

Mel.