Cancelling Loan Payment Protection Advice

Morning all,

I took out a loan in March of this year for £7500 with my bank(Lloydstsb), and was sold payment protection policy by the bank manager, but now I know a bit more about these schemes not being very good, I looked up my original loan agreement and noticed that it was costing an extra £30 a month which I could be using for other things. Can I just go down to the bank and say I want to stop the payment protection policy? or is it more complex than that? Would I need to draw up a new loan agreement with them? or failing that, get another loan to pay off this one?

Regards

Austin

Reply to
Aust_Powers
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I have seen loan agreements where the "protection" is rolled up at the beginning, added to the loan and you then pay interest on it and the loan. Can you definitely see it as a separate "line item"? If so I would think writing and canceling that facility would be no problem at all. If it became part of the loan - then you will have more trouble.

Reply to
Colin Forrester

The investigation into these protection rackets, oops i mean scheme cant be completed early enough. With loans like this they give the impression that if you dont take protection out you may not get the load.. The sooner they call bank managers by thier real title of salesman the sooner customers will cotton on to thier sales techniques and that they commission on sales of these sort of products.

Reply to
linkuk

In message , linkuk writes

Quite right. It was never like that it my day! We had 'proper' managers!

Reply to
John Boyle

John, a little story about my last "real" bank manager (business manager). He called me in to have a chat and i went to a lot of trouble to have a good explanation of a recent short term problem and sat there with him going through this in detail. At the end he said "well David i didnt call you in to discuss that" and when i sked why i was there he replied "well im pissed off with being a non decision making button pusher so im leaving and i thought we could tidy up some loose ends and give you a bigger overdraft and also a better business loan! What an honest and nice guy! lol

Reply to
linkuk

It was recently alleged that >80% of claims under PPI were rejected....

Reply to
whitely525

Hi,

If they will not agree cancel payment protecti> Morning all,

Reply to
pappa1928

In message , linkuk writes

I like it!

Even so, he wasnt a 'proper' one if he couldnt make decisions.

Reply to
John Boyle

That would not surprise me - the cases I have dealt with were all sold the insurance incorrectly - they were never eligible from day one.

Reply to
Colin Forrester

Thanks for all your responses,

I contacted my bank, who gave me the number of the loan company my loan is with, I rang them today, and they told me I would have to re-finance my existing loan to get the payment protection removed, so they went through the process of taking out a new loan to pay off the old one, but they said after the credit check that they could not put it through straight away, and I would receive paperwork through the post in the next couple of days stating if I have got the loan or not, implying that there is a problem with the credit check.

My circumstances haven't changed, so I can't beleive they won't give me the loan if all I am doing is paying off a loan I already have with them!. If I don't get it, whats the next step?

Cheers

Austin

Reply to
Aust_Powers

In message , Aust_Powers writes

The automatic authorisation has probably thought you cant afford the new loan because it doesnt know that you are repaying the existing loan, also some credit scoring profiles give you less points if you dont take the insurance.

Reply to
John Boyle

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