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Original poster

Need advice on payment protection for a loan????

15 replies

mrspitt · 04/03/2006 14:39

Boring stuff but we have just been accepted for a loan which there wre 3 levels of pp cover or none at all. I wasn't going to take any had a panic and picked the bronze cover thinking it would be pretty cheap.
Anyway did it online and it didn't say how much it would be. They phoned dh to say blah blah you got it and its xxxx per month he said great not knowing that i thought it would only be xxx amount.

Basically the pp cover is going to be £80, on top of the loan repayment which is too much i think.
What i want to know is can you cancel pp at any time or once you have agreed do you have to keep it? We haven't signed anything or got money yet, courier is delivering cheque on tuesday.
Sorry for rambling!!! Any advice anyone??

OP posts:
Original poster
mrspitt · 04/03/2006 14:47

Anyone???

OP posts:
BadHair · 04/03/2006 14:48

Yes, you can cancel it. Do it straight away. Payment protection is one of the biggest rackets going - it covers you for virtually nothing and the costs are ridiculously high.

LIZS · 04/03/2006 14:50

I think you may have a cooling off period under Distance selling rules but best check the small print on the site.

BadHair · 04/03/2006 14:50

\link{http://www.fool.co.uk/news/comment/2005/c051117d.htm\this} from the \link{http://www.fool.co.uk/\Motley Fool website} might help.

BadHair · 04/03/2006 14:52

You can cancel Payment Protection Insurance at any time. Sooner the better really.

Original poster
mrspitt · 04/03/2006 14:55

Thank you all. I grudge paying for anything i don't need! Will check out the link BadHair.

OP posts:
Original poster
mrspitt · 04/03/2006 15:43

dh just phoned the lender and they have told him we must have PPI but their website didn't state this and gives the option of not taking it.

So are we being fobbed off?

OP posts:
BadHair · 04/03/2006 15:48

Yes, you are being fobbed off. If they won't cancel the PPI then tell them you'll cancel the loan immediately. You can do this under the cooling off period.
PPI is not a legal requirement to having a loan.
Who is the loan with, if you don't mind my asking? Are they reputable?

Original poster
mrspitt · 04/03/2006 16:01

Its with Saisburys Bank who we already had a loan with before and had no ppi for that so i don't understand why they are insisting now. Though this is for a larger amount.

I know i can cancel the loan up to 30 days but can't find anything about cancelling the ppi. They did offer to change it to unemployment cover only but its still £70 and almost useless as dh is in a very secure job.

OP posts:
paolosgirl · 04/03/2006 16:08

Yes, you can cancel it. I worked for Intelligent Finance (spit), and so I know you are well within your rights to cancel it. It's an insurance policy - they'll probably not even underwrite it. Phone them and tell them you don't want it.

BadHair · 04/03/2006 16:10

I wonder if it's because the offer of the loan, and therefore the amount repayable, was based on you taking PPI? So the repayment calculations would have been based on them getting extra money for PPI.
I would ring them back, tell them that unless they remove the PPI you will cancel the loan agreement and go elsewhere. If they won't cancel the PPI, then do just that - go elsewhere. Or, if you really did want that deal, you could apply online again but leave the PPI box unchecked. Then see what they offer you on that basis.
Sorry if I sound bossy, but I hate people being ripped off like this.

Original poster
mrspitt · 04/03/2006 16:12

Thanks Paolosgirl. i get a bit nervy when it comes to money matters because i don't want it to affect credit rating etc. Dh is a bit clueless when talking about stuff like this too but i make him do it sometimes. He probably hasn't been tough enough with them.

Well if you want a job done properlySmile...........

OP posts:
Original poster
mrspitt · 04/03/2006 16:14

Don't sound bossy at all , like i said dh is a bit crap with this stuff so it's good to have a different voice, you sound a bit like my sister actually!
Oh, i always thought she was bossyGrin

OP posts:
Original poster
mrspitt · 04/03/2006 16:16

I think i will phone this time, only got him to do it cos he's the main applicant but they should speak to me too. Might need a loan of you're bossy hat though BadHair!!

OP posts:
BadHair · 04/03/2006 16:50

You can borrow my bossy hat anytime, Mrs P. Only thing is, I'm usually wearing it!!

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