loan without ppi

pel007

hi just looking for some advice. have applied for a £6000 loan with alliance & liester and have been approved. but have spent half hour on the phone with the man going on about ppi which i have stated twice on the application i did not want as i have previous experience which makes them not worth it.
he then stated that they would not be able to give me the loan if i did not take the ppi as they were worried i couldnt pay back if something happened.
im sure he is just trying it on but would like to see if anyone could advise me. the ppi is £32 a month and would amount to £1600 which is a waste as i have other ways to pay the loan if i was to become unemployed. he said he has sent the agreement papers out for me to sign, is it possible to sign them and then cancel the ppi after the money has been transfered.

Scousebird_2

pel007 wrote: »

hi just looking for some advice. have applied for a £6000 loan with alliance & liester and have been approved. but have spent half hour on the phone with the man going on about ppi which i have stated twice on the application i did not want as i have previous experience which makes them not worth it.
he then stated that they would not be able to give me the loan if i did not take the ppi as they were worried i couldnt pay back if something happened.
im sure he is just trying it on but would like to see if anyone could advise me. the ppi is £32 a month and would amount to £1600 which is a waste as i have other ways to pay the loan if i was to become unemployed. he said he has sent the agreement papers out for me to sign, is it possible to sign them and then cancel the ppi after the money has been transfered.

OMG-get that call listened to-make a complaint to a line manager. This is PURE mis-selling of PPI!

I am FSA accredited and General Insuarance accredited in loan protection and if I had said to a customer-you must take this policy otherwise you can't have the loan-I would never work in another UK bank EVER again!!! Not only that but you risk the FSA putting you on a 'name and shame list' for the world to see saying you have mis-sold a product and you cannot sell if it is investigated and they rule that you have done it purposefully

This is a gross breach of FSA regs and it's appauling. You have been accepted for the loan FULL STOP, based on your circumstances and credit history.

PPI is an optional policy-the adviser HAS to explain the features, benefits and relevant exclusions (plus usually a minimum of 2 others) that COULD affect the customer in the duration of the policy when making the recommendation-it is from this point that the seller must say something along the lines of...

'However, when recommending the PPI policy to you Mr/Mrs Customer, I must inform you that this policy is OPTIONAL and my decision to offer you this loan is not affected by whether you agree of disagree with my recommendation. On this basis and given the information I have just discussed-would you agree with my recommendation to take out this insurance to protect your borrowing'

From this point-you need to make an informed choice as to whether or not you want the policy and if you decline the cover, the adviser would generally record this on the account notes for later reference should the FSA pick up the call or investigate.

If the adviser did say what you are saying (i'm not going to judge as I wasn't there) and there was no misunderstanding, then by all means, firstly get your loan-and secondly, make a complaint to a manager in A&L because this person-if they are mis-selling, should be re-trained to do it right!

Have the call listened to by a line manager by making a complaint. I am quite shocked though if this does turn out to be a blatant case of mis-selling!

Good luck