Payment Protection Insurance - personal loans

chillipepper_3

Never buy ppl from a bank, I work for one I know. Personally I have an income insurance with HSBC which covers criticial illness which I rely on for insurance in that way. It costs me approx £11 per month. I know that if i was made unemployed I would be able to find work fairly soon. however I am taking risks here as there are ways i could get caught out.
But on the whole as others have suggested buy from a broker, its much much cheaper. These banks and staff are under enormous pressure to sell the insurance, so let them say what they have to say and politely decline.

Don't take any pressure selling tactics, if you experience these then ask for the manager. My partner was recently told by HSBC staff member on a loan application (who I think are the best by the way, I work for another.) that she would not loan her £25,000 without insurance but would look at a lower figure of £21,000. (??) When she knew that the lower figure was no good. The loan was referred and she said if she wanted insurance to let her know and she would get back to her, this was 2 weeks ago. I've advised my other half to take the matter up with the manager.

My advice to HannahD would be to get a settlement figure from your bank, look at a rate elsewhere and calculate if it would be cheaper applying for another loan to pay off the settlement figure without ppl and take it separately with a broker.
You shouldn't have to pay front loaded insurance, but by getting a settlement figure and asking what the interest and insurance refund amounts are you can work this out easily.

HannahD_2

Thanks Chillipepper and Stonk for your advice. Just to update you I have got a consolidation figure from the bank, but am going to write to find out if I can cancel the PPI even though the loan is over 30 days old. It's worth a try!

If they say no I then have the option to move the loan from them without the PPI and hopefully somewhere with a better rate.

Since I started visiting this website I have gained so much understanding of all aspects of money and what to do with it. I cannot thank everyone enough so far :T