insurance on an unsecured loan

the_boy_with_no_name

guys, i got a £15000 unsecured loan from he clydesdale bank bout 1.5 years ago, it runns for 4 years. it is cover by ppi insurance, at the time i had just started a new job & took the insurance out just incase anything happened.
i'm now in a very good position with the same company & was wondering if i could cancel the insurance on the loan.

can this be done?????

lemonhead_4

i have been trying to find some stuff out for me and have had to borrow a friends PPI booklet as i never got one, on the cans and cants of PPI, in there is sais something like if you want to cancel your PPI you can do so by sending a letter to ask to cancell which they will do after 30 days notice, it also sais that they will refund and calculate your loan to give lower payments, this loan as a refund percentage table it sais

after 12 repayments you get 13% back, 24 repayments 8% back, 36 4% back and 48 1% back.

This is with a diff loan so yours may be different. Sounds like you did not receive a booklet all about PPI same as me, thats why i have had to look at a mates so i can just check a couple of bits and hope they are similar

Hope some of this helps

nic01_2

Hey!

The answer is yes you can! you need to find out if you need to write you dont always need to, they might be able to send you a form to sign n cancel lemonhead is right in saying it'll prob be 30 days notice and you'll get an amount taken off the loan. Check with them how much this would be

Hope this helps you

andrew_dunbar

Hi there

Myself and the missus also tried to cancel out PPI on a £5000 loan that was taken out 1 year ago at our local Clydesdale.

After being told to make an appointment with the bank, we were informed that the only way to remove the PPI was to reapply for a new loan. Due to the difference in interest rates (it would jump from 8% to 18%) we would end up actually paying more per month.

Can this be right?

marshallka

You can cancel PPI and also you should expect a rebate on the insurance too. They do have to re finance the loans sometimes if this was a single premium policy but they should not put up the interest rate at all.

there is a good article here

http://www.which.co.uk/advice/cancelling-your-ppi-policy/index.jsp

and here too


http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/043.shtml

remind your company of these rules set out by the FSA and also refer to your terms and conditions on your paperwork. Perhaps they are acting out of line anyway.