Cancelling PPI within 30 days of signing the agreement

Steameh

Hi all,

I have just taken an extention on my existing loan with A&L. Now they strongly recommended I took out the PPI on my loan, as they do. Now all the documents have come through today but I have decided against the PPI. They want £52 a month, adding a total of £1258.80 to my loan. This is disgusting.

I've read my T's & C's and it says the following.

Cancellation

Within the cancellation period

You can cancel the policy within 30 days of signing the loan agreement, provided you have not made a claim, by writing to bla bla bla address. There will be no charge for cancelling within this period. However, cancellation of your insurance contract will also cancel your loan agreement. In these circumstances you will be sent a new loan agreement to sign and return.

After the cancellation period

After the initial 30 day cancellation period, you may still cancel your policy before its end date by writing to bla bla bla address. If you do this, your loan will be settled and a new loan set up without the insurance. The new loan will finish on the same date as the original loan. You will be sent a new loan agreement to sign and return.

---

Which of the above two options would you recommend is best? Will this have any affect on the loan (will they start being arsey about it and threaten things etc?). Will they refuse to give me a new agreement, therefore rendering my loan void and start asking for full repayment?

Thanks in advance.

Steameh

Also my other option is to simply not tick the 'Give me PPI' box. BUT no doubt this will alter their decision to give me the loan :-(

Bykerlass

Steameh wrote: »

Hi all,

I have just taken an extention on my existing loan with A&L. Now they strongly recommended I took out the PPI on my loan, as they do. Now all the documents have come through today but I have decided against the PPI. They want £52 a month, adding a total of £1258.80 to my loan. This is disgusting.

I've read my T's & C's and it says the following.

Cancellation

Within the cancellation period

You can cancel the policy within 30 days of signing the loan agreement, provided you have not made a claim, by writing to bla bla bla address. There will be no charge for cancelling within this period. However, cancellation of your insurance contract will also cancel your loan agreement. In these circumstances you will be sent a new loan agreement to sign and return.

After the cancellation period

After the initial 30 day cancellation period, you may still cancel your policy before its end date by writing to bla bla bla address. If you do this, your loan will be settled and a new loan set up without the insurance. The new loan will finish on the same date as the original loan. You will be sent a new loan agreement to sign and return.

---

Which of the above two options would you recommend is best? Will this have any affect on the loan (will they start being arsey about it and threaten things etc?). Will they refuse to give me a new agreement, therefore rendering my loan void and start asking for full repayment?

Thanks in advance.

Take a look at my posting yesterday called HARD SELL.

regularsaver1

Steameh wrote: »

Also my other option is to simply not tick the 'Give me PPI' box. BUT no doubt this will alter their decision to give me the loan :-(

It can not alter the decision - it will have no bearings on whether the loan is offered or not

you have not completed on the loan yet - make sure you get it correct first, otherwise in the last post you added they say you have to do a new loan without ppi to cancel out the last one

you will then need to get a correct updated agreement from them to sign before completing

Steameh

So your suggesting I just don't tick the PPI box?

Can it alter the agreement in any way? Such as interest rate etc?

Rafter

Steameh,

They cannot withdraw the loan offer or change the interest rate within the 30 day cancellation period. The new loan agreement is just because they have to change details like 'total amount payable' and monthly amount due etc.

Remember you are buying two products: A loan and an insurance product. The insurance product is for your benefit and not theirs. They also make about 10 times as much profit on the insurance as the loan itself - hence the hard sell.

Cancel now!

And if you really want loan insurance do a google search for 'income protection insurance'. You should be able to get it for a fraction of the price, and only pay for the cover you actually need or qualify for.

Good luck.

R.

Steameh

Thanks for that. I'm just not gonna tick the box for PPI. I've already had another quote and can get income protection for under £15 a month.

Just facing the dilemma of getting my agreement to A&L with the postal strike. :-(

Rafter

Sorry - can't help with that one - you could try dropping it into a branch but they may not accept it - you could try a courier - might cost you £10 for someone like citilink but at least it would get there on monday.

R.

Steameh

Rafter wrote: »

Sorry - can't help with that one - you could try dropping it into a branch but they may not accept it - you could try a courier - might cost you £10 for someone like citilink but at least it would get there on monday.

R.

I've just called A&L. I can drop it into a branch and they will fax it to head office.

regularsaver1

Yeah, if you do not tick the ppi box, you might have to wait for a new agreement to be sent to you for you to sign with the correct details on, before you complete