Cancelling PPI

MiniLaura

Hi

Took out a loan for £5500 in Sept 2006. Total was around £8000 with insurance and interest added. Also took out bill protection insurance at 9.95 a month

Claimed on insurance for 5 months while unemployed.

Now reemployed in a fixed contract - which means terms of insurance no longer cover me. Im also on a lower income meaning its difficult to pay the term originally agreed.

Have called and the settlement figure is standing at 5200 at moment. Would pay back 5500 if paid on current terms and at full amount of repayments. More if i default on payments.

Would like to know where I would stand on cancelling the remainder of insurance on loan but keep teh bill protector (seperate agreement) to cover an emergency.

I dont think I can claim that insurance was missold, jus that its no longer valid. I wouldnt be looking at claiming any costs back, just getting the insurance for rest of loan term cancelled then see if repayments are affordable or better to refinance.

I have read the guides about PPI reclaiming but doesnt match my situation.

Any thoughts or experience down this road would be useful!

Thanks