Cancelled Payment Protection But still paying

Dave.mcdonald

As a cost cutting exercise, I have cancelled my payment protection insurance with all my providers and taken out a lifestyle protection insurance out with the post office, which will also cover my rent etc.
4 Years ago, I took out a £23000 loan out with Tesco's over 6 years, payments £448 including £68 insurance (as Stated on the loan agreement). I have this week received the letter from Tesco regarding my new payments minus the insurance not the £380 somthing I was expecting by £433 (£15 less). After ringing Tescos, they told me that cancelling the insurance incured a penalty costs and this should have been outlined when I phoned to cancel the insurance. They also said that someone would phone me in that call to tell me my new payments, no phone call. Also someone would call me back... again no phone call.
I guess its a letter now then.. (if the postman ever go back to work)

kitchen_buff

Sorry to tell you this, but if you took out the PPI with the loan then the insurance figure is offset by the amount of the original loan, so the longer the loan goes on the less the insurance cost to offset, even though it is £68 per month for the full term, when Tesco cancel the insurance policy, the people they offset it with will charge them for cancelling, this is then passed down to you pro rata.