Loan help...

babyfreckles

Hi there,

I joined this website as im after some advice. I have got a loan with Lloyds TSB. I cant actually remember what the APR was (I took the loan out in Dec 2006). I have been looking at getting my finances back to normal as I have got 1 credit card, 1 store card and this loan (CC has £750 on, SC has £300 on, Loan was for £4,500). I have been thinking about cancelling my 'insurance' protection that they sell you as I have never claimed on it, and feel its a bit silly paying it if im not going to use it.

I have just today receieved a letter from Lloyds TSB saying that I havent contacted them in a while and they have enclosed a copy of their loan protection insurance booklet (I was told my loan wouldnt be accepted IF i didnt take this insurance out as my credit rating was bad).

It says that if I wanted to cancel my insurance, I would have to pay an administration fee of £45! Just to cancel something that im not using!!

Are they allowed to do that?

Any advice/help would be much appreciated! x

mrmajika

You should have been told that the loan protection was optional.

How did you apply for the loan?

If via the internet, then you would have self selected the protection.

If via the telephone then a copy of the call will still exist as all loans calls are recorded and stored.

If in branch, then it's a little more difficult, as it's essentially your word against that of the staff member.

In all cases you would have had to sign the T&C's separately for the PPI as an extra signature is required to agree to the PPI. Buried in those T&Cs is the part that allows them to charge the administration fee.

Up until now, to the best of my knowledge, any PPI cancellation has been free. This must be a new charge that's been introduced.

iolanthe07

Lloyds do seem to push PPI quite hard and you need to be firm about refusing it and making sure it is not included before you sign the papers. I think you may have to bite the bullet on this one, though. What do your T & C's say?

SmellyOldSock

I've got a loan with Lloyds tsb and rang to cancel the PPI.

I got told I'd have to arrange for another loan without the PPI, which I done over the telephone, it took all of 15 minutes, paperwork thru next day.

Have now sent a letter to claim PPI payments!

best wishes
Charlotte