Cancelling PPI CAN BE DONE!!!!!

A question about : Cancelling PPI CAN BE DONE!!!!!

I would just like to thank everyone for their advice regarding my payment protection.

I have a loan with Lloyds TSB, and just like everyone else, when I tried to cancel the PPI I was told I couldn't because of the loan being over 30 days old.

However, I came on this forum and read up about cancelling the PPI, PM'd a few people and got a great template letter (PM me if you would like a copy). I wrote to them last week, and low and behold when I checked my loan balance today I've been credited back the WHOLE insurance amount.

Martin , MSE and all you wonderful people have saved me £5000.

I cannot thank you enough.

Edited to add the template

Complaints department

Bank's name & address

Re: account 999999999999999999999

COMPLAINT

Dear Sir or Madam,

I took out the above loan for £x,000 on dd/mm/yy. When I took it out, I signed up for Payment Protection Insurance. I phoned up on dd/mm/yy to ask to cancel it and was told that this is impossible. I am writing to complain.

Put in any of the following which apply:

[When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do. I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I am self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick. My situation was known to the person who sold me the loan, however he/she did not point out that the insurance was virtually useless to me so I think that I have been mis-sold the insurance.]

[When I took out the loan, I said I did not need the PPI as my employer provides generous illness and redundancy benefits, but I was told I should still take it out. As this is not correct, I consider that I have been mis-sold this expensive insurance, which I do not need and which I said that I did not want.]

[I wish to cancel the PPI because since taking out the loan, my employment situation has changed. I am now self-employed/work as a contractor/unemployed and therefore will not be eligible for any payments from the PPI if I cannot get work or am sick.]

[I wish to cancel the PPI because I now have sufficient alternative insurance cover from my employer and other sources.]

[I wish to cancel the PPI because I am in financial difficulties and cannot afford it. I enclose a Statement of Affairs which shows this.]

I have been advised that I should be able to cancel the PPI contract at any time and receive a partial refund of the premium that I have paid. I would like to do this. [And in view of the way I was mis-sold the insurance, I would like to ask for a full refund of the whole premium.]

I would appreciate a reply to this letter within fourteen days. If you reject this complaint, I would be grateful if you could explain whether you provide an internal appeals process. If you do not, please supply me with a final response letter, so that I can take up the matter with the Financial Ombudsman Service.

Yours faithfully,

nb There is no reason why you have to be able to prove that you cant afford the PPI before you cancel it, so in theory you should not need to send an SOA. However, I think it helps because it puts the bank morally in an even worse position if their PPI is causing you hardship.

I am a very happy person today!

Just off to change my signature!

Best answers:

• Congrats !
  hehe great feeling isnt it ?!
  Trick is folks, dont take no for an answer - kick up a fuss and they will crumble eventually.
  TSB refunded me Ј1300 a couple of weeks ago on one loan and after a few letters of complaint they have agreed in writing to refund the PPI on my other loan. They said it would be done within 21 days.
  I wont post figures etc untill the transaction is complete though.
  I keep checking online like an excited child
• Is that cancelled on the basis that it shouldn't have been sold (because, for example, you are not eligible for cover) or some other basis, Avo?
• Just sent you a PM- I was told by halifax that I can't cancel PPI as I've had the loan for over 3 months - they offered to change the loan to Ј1000 more then take of the PPI.
  Thanks
• Hey Roversbabe
  I heard that they will try that, changing your loan if you choose to cancel PPI to a higher rate. Will check my PM
  Thanks!
• I cancelled my Egg loan PPI with just a quick phone call. And even though my loan was 1+ year old they knocked it off the remaining amount owed and my monthly repayments dropped instantly.
• Hi $17mma
  Was the OP I PM'd as she has a letter that she used to cancel hers - might work.
  Thought that was a sneaky trick of the halifax to try & get more interest out of me cos I wanted to cancel PPI - we live and learn eh!
  rb
• My loan is unsecured - does that make a difference?
• Have a look at the links above posted by roversbabe, they will take you to a site which has a sample letter to send to your loan provider.
  Good luck and let me know how you get on.
• Thank you $17mma & Avogirly
  I shall definately give it a try and let you all know if I'm successfull.
  Thanks.
• Hello everyone
  I have some good news I sent my letter off to my loan provider and I just called them to see if they have received it which They have and they have taken off my PPI SO I AM NOW SAVING Ј33.68 PER MONTH making my monthly payments cheaper.... I am in shock!
  Yeeaaahhhh for MSE and to all the people who have posted on this thread...
• Hooray! Congratulations. It's great when it happens.
  Good luck to all those others trying to become debt free.
  $17mma, have you changed your signature yet?
• That made me feel really good!
  I'm so pleased for you, because this time of year is horrible for those who are in debt because of all the tempations, so when things begin to look brighter it's wonderful!