PPI & tsb & now i'm a student

fluffytiger

hi, ive trawled thru all martin's articles on PPI and cant find the answers i need. I took out a 10k loan from lloydstsb a couple of years ago. The PPI i was told was a compulsory part of the loan. TSB now say that if my loan is changed, eg my PPI is cancelled, they have to cancel my existing loan and give me a new loan without the PPI. This is apparently their policy and martin quotes this too. Sounds ok... The trouble now comes as i am now a fulltime student and working part-time on a relief basis, eg i do random shifts as i can and have no contract and of course my income is much less than what it was a few yrs ago when i took out the original loan.
TSB have indicated that i probably will not now qualify for a new loan from them as my circumstances have changed and my income is much lower, so they wont be able to provide a new loan, so if i want to cancel i will need a loan from elsewhere but again this looks doubtful cause of my low income and if i can get one, it may well come with much higher interest rates, thus negating the saving of ditching the PPI.
Any ideas folks, i feel snookered!

petermb_2

There may be something you can do, which could mean keeping your existing loan. You would need to look at the agreement and the terms and conditions of both the ppi and the loan to assess.