stevie_c

Hi,

Is there any financial advisors about? I have a loan running with loan protection, my circumstances have changed so I don't need to have the protection anymore.
I contacted the lenders (All.&Leics) to cancel it, they sent a letter saying I could but my repayments will only change by about £20 a month, but if I hadn't got the protection to start with it would have been about £80 a month cheaper.

So why do they want so much money with no protection now?
Any help or advice would be very much appreciated before I phone on monday to ask them whats going on.

Thanks in advance,
Steve

paul-s

Its normally an amount fixed at the start for a payment protection policy. This is then added to the loan and divided among the repayments. If you cancel it, like in my case, i got a refund of the amount charged yet my repayments remained the same. if not they should reduce by a pro-rata amount depending on how much of the policy you have used/have left to run.

Jamo

iTrader: (23)

the insurance that you had on the loan in the beginning was added to your loan, they basically lent you the money for this and added that to your loan, so you will have paid a lot of it already (depending on how long you have had the loan?) if you havent made a claim on the loan protection, by rights you "SHOULD" get a rebate. however theres no guarentees.

I think you will find it will be part of your terms and conditions in your CCA.

I would suggest asking them for a firm price without the insurance, dont forget they lose money if you remove the insurance elements! they have staff that know how to put you off.

the fact they say about £20 dosent meen anything.

stevie_c

Thanks for the quick replies.

I am 2 years into a 5 year loan, never claimed on the insurance and never missed a payment.
On there loan calculator the repayments with protection are £80 higher than without protection. I was expecting to be paying the lower amount, not just £20 lower, that means they are taking £60 a month off me for the next three years and I don't see where it is going (apart from straight into their pockets!).

paul-s

payment protection should only be about 20 quid a month, unless you have the mother of all loans

i would expect a refund of 3 years of a 5 year protection policy.

RLE

iTrader: (2)

Can you not look at getting a settlement figure from them and taking out a new loan without payment protection with another lender?

stevie_c

That was my plan for when I phone them tomorrow mate, I am hoping that will be enough to make them back down a bit. I was hoping the threat of taking 3 years interest(ish) and the fact that I would never deal with them again might work.

RLE

iTrader: (2)

Good shout.

I'd have a look around anyway. You may just get a better deal elsewhere.

May help..........

http://www.moneysavingexpert.com/banking

Good luck.