Cancelling loan PPI before money received

catnap53

A couple of days after I found this site my husband applied for a loan with A&L, but was not accepted. Next day he had a call from a finance company offering to find him a loan. He agreed and was put in touch with LTSB.

Despite my telling him he didn't want PPI (after the last problems) he agreed as he felt that it was required. He took a bigger loan than he originally wanted (15K) at 9.4% with the PPI to cost 79 pounds a month.

I asked him to cancel it as that money would be better used for other things. He has only had a permanent job for a few months and although I haven't read the policy, I understand that he would have needed to be in full time employment for longer to make this policy valid.

He rang the next day and I told him to cancel the loan if he couldn't cancel the PPI. He was told that the BACS had already been put through, but he could cancel the PPI if he put it in writing. He did this immediately, adddressing it to the person he had dealt with. The next day he had a call asking him to get in touch with another person, who asked him to reconsider the cancellation, which he refused to do.

The documents came through the next day and still had the PPI on them. He wrote again asking for confirmation that the PPI was to be cancelled and enclosed a copy of the first letter.

The money arrived and he has paid off his credit card that had 23% interest, with some remaining for home improvements.

Today he has had a voicemail from another LTSB member asking him to call back (0870 number) about the letter, but has been unable to get through as yet.

Any advice please?

Thanks

Pat

catnap53

The T&Cs do state that permanent employment is to be for 6 months at the time of signing for benefit to be paid for unemployment. He remembers being asked how long he had been with his current employer, and although it was 7 months, he was on a temporary contract (due to run out this month) but was given a permanent job in November.

He has not slept worrying whether he will be asked to pay back the full amount of the loan or have the interest rate increased.

Pat

catnap53

Thanks Poppyfive. I hope we have now got it sorted. After another lengthy phone call last night, and a further push to try to get us to have this, it seems like they have agreed to cancel the PPI and resend the loan documents without it. Will have to wait and see.

You are right, the premium itself was bad enough, but the interest on top for something we didn't want was appalling. At least if the money was still on the credit card, the PPI would reduce as the balance went down. I think this was the deciding factor in making my husband aware of how bad it was and made him strong enough to resist the temptation to give in and accept it.

Thanks

lemonade_lifestyle

We were in similar boat as you few weeks ago. Husband obtained loan from LTSB and agreed to PPI as he thought it would help with loan application. Loan accepted with no problems. After receiving docs thro post we noticed in some small print that taking out PPI or refusing it would have no bearing on their decission to give us the loan (we bank withLTSB aswell). So hubby phoned up and cancelled it. No probs at their end what so ever. They sent us out paperwork to sign and cancel PPI. This was all done within a week of money being put in bank.

The first payment went out, but it was for full amount (including PPI). Phoned them and they said payment had already been applied for before confirmation of cancellation was received, however they were going to refund the difference back into our account. They did say they wouldn't resend out loan agreement without the ppi on, we just had to take the new monthly figures from the original paperwork and ignore the PPI figure!!

So just keep an eye on your account and don't expect any more paperwork from them (only a letter to confirm cancellation of PPI).

catnap53

Thanks,

There is a letter here now, but he is not home from work yet, so don't know what it says.

I am sure it can't be the final one as the last phone call was only yesterday evening.

Pat