Is this correct?

teddy54

I wonder if anybody can help me with this.
At the moment I am going through a outgoings-cutting exercise. I have a personal unsecured loan with HSBC which includes the usual unemployment/ilness premium. I decide that I have no real need for this, so asked for it to be cancelled. I was told that the loan would have to be"restructured", and was advised to speak to the relevent department. I duly did this, and was given the advise that settling the loan early and replacing it with a larger loan would be the best option, the extra amount being used to reduce a large balance on my credit card. The reduction in the overall monthly premium would then help my situation.
I gave all the details, and then recieved a letter saying my application was being turned down due to my present amount of indebtness to the bank!
I don't understend as to why I cannot just cancel the insurance premium. I know this is possible with credit cards, so why not a personal loan?
Are they able to do this? I am not asking for any sort of refund for premiums already paid(2 years), I just don't want to pay it any longer.
Anybody any ideas? Thanks

exel1966

By wanting to cancel your PPI it has made them think you may be struggling to repay the debt (even though you may not be) so they have jumped on that and gone down the lines of trying to sell you a further product which you do not need. DO NOT accept what they say.
Call them again, be firm, but polite and INSIST the PPI is cancelled and try not to get lead astray by them offering other solutions. Remember the people at the other end are sales persons on comission and it's only in THEIR interest to sell you something else and probably not yours.In most cases PPI can be cancelled without any penalties or any restructuring of the current loan, but check your T&C's very carefully first.

CLAPTON

To get PPI removed from a loan (rather than CC) requires perseverence and singlemindedness.
So just contact them again and ask for the PPI to be removed and don't accept restructured loans etc.... a favourite trick is to agree but to have to give you a new loan at a much higher interest rate of course so you are no better off.
Read Martin article on loan PPI.

teddy54

Thank you both very much.

CLAPTON

also ..on the Loans forum you will find a 'sticky' about PPI on loans that may be of interest to you