Cancelling PPI

rumblytum

Hi all,

I have been reducing my debt for 18 months, and am now left with a Lloyds TSB loan in my husband's name (about £16000), and one credit card £1600 just moved to Virgin 0% (from Barclaycard 0%).

There is Payment Protection Insurance on the loan. I know (now!) that this rarely pays out, and we are covered elsewhere. When my husband called to cancel this, he was told that it should have been cancelled within x number of days of taking out the policy, and it could not now be cancelled.

I've checked the T&C, and this appears to be correct. I have heard of others cancelling PPI on loans without a problem. Is there any way we can get round this?

I look forward to your replies.

Kind regards

rumbly

HannahD_2

Hi

I have also got a loan with Lloyds TSB and it also has PPI. Grrrrr!! I wish I hadn't taken that out. I have tried to cancel it through the bank. I have written to them asking if they can contact me to discuss it, however, they made one attampt to phone me ( I wasn't available at the time!) and that's all I have heard from them.

As soon as I can I am going to transfer my loan, without the PPI (i'll take it from elsewhere).

Having been wandering around this site for a month or so now I think that is the best idea for someone in my position, which is similar to yours. Please let me know if you have any luck either getting rid of the PPI, or a good rate elsewhere.

rumblytum

Hi everyone,
Thanks for your useful replies.

The rate is 8.7%, but I don't know what the lump repayment figure is yet - will probably include an early repayment penalty figure. As there are so many loans with lower APRs I think I will go down the route of repaying this loan with another loan. As long as the penalty is lower than the amount I will be saving on PPI and interest, then it'll be a winner. Have been having a look around, and I'm quite interested in the Northern Rock flexible loan. I have a snowball of £174.50 which I'm throwing at my debts, so it would be good to have a loan I can pay off early without penalty.

My credit rating should be OK - I've just been given a Virgin 0% card to transfer my Barclaycard balance onto (which I will now cancel, obviously).

Might have to wait a couple of months though, to show the cancelled Barclaycard, otherwise it might look like I'm applying for too much credit at once.

Many thanks again

rumbly

Crown

Let us know how you get on

I read in the paper today (London Metro) that there doing a investigation into PPI as its being sold when the person would never be able to claim on it.

Lets hope the banks get whats coming to em...

northerngirl_2

Is it safe to take a loan out and not have yourself covered with the ppi,what if something happens to you and you can't make the payments will you be further in debt,i'm kinda slow!!!.

MarkyMarkD

Yes, northern, that's the point of the insurance.

And, rumbly, you won't just suffer early repayment penalties on the loan but far higher early repayment penalties on the PPI. So the cost/benefit of switching to another lender may not work out. You need to compare the total payments on the new loan (which needs to be for the settlement amount) with the total payments on the existing loan, over the same term, to have a fair comparison.

asandwhen

There is a way round the early repayment fees with a lloydstsb loan - it goes as follows :-

Lloyds tsb allow overpayment on the loan so pay a lump sum minus 1 months payment let the next months payment come out as normal and then no fees - This has been tried and tested by myself and it works -

good luck. :cool:

HannahD_2

Does that mean that when they give you a settlement figure it doesn not include the early repayment fee too?

Xbigman

A settlement figure does include any penalties if the loan has them. Not all Lloyds loans do.
Paying off all but one month on a loan can work if the early redemption penalty is termed as a period of interest on the outstanding balance. If it is a set figure this method makes no difference. Likewise there may be a final fee payable that you can't get out of.

If you can make overpayments then do as already suggested and pay off all but one months. Then phone them to confirm it the loan will clear the next month. I paid off a Lloyds loan early like this without penalties but they do have different types of loans.
Regards



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