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Can I Cancel Loan Protection

If you've recently noticed an additional surcharge or hidden fee on your monthly statement for one of your loans, you may be paying for a payment protection insurance (PPI) policy unnecessarily. These policies are often secretly bundled into loans by deceitful lenders in an attempt to earn commissions from affiliated payment protection insurance companies, while also increasing the overall loan amount for higher interest profits. If you attempt to cancel the PPI policy you'll automatically default on the loan, instantly causing damage to your credit score, and decreasing the likelihood of being approved for loans in the future. If you've been asking yourself "can I cancel loan protection insurance", consider the following information.

Can I Cancel Loan Protection Insurance without Defaulting on the Loan?

Due to the fact that the PPI policy has actually been attached to the loan via binding terms and conditions within loan contract, it is impossible to stop making payments on the PPI policy without defaulting. In essence, the PPI policy is sold as part of the loan (charged as a one-time premium in some cases), so to stop paying the policy would be the equivalent of stopping payment on the loan. Thus, the only feasible course of action is to contract the professional assistance of a PPI claims company or specialist that can not only help you cancel payments on the loan protection insurance, but also reclaim all previous payments in one lump sum. Ideally, you'll want to continue making payments on the loan even after consulting a PPI claims company, while allowing a professional claims specialist to contact your lender and/or the necessary authorities on your behalf.

Can I Cancel Loan Protection Insurance and Claim Back PPI Payments?

Reclaiming is often the only option, as PPI policies are usually sold at the rate of a one-time premium, which is combined with the original loan amount to form the total loan value. The lender then charges interest on the loan based on this total loan value (PPI policy premium included), thereby causing the borrower to pay more interest, in addition to the actual policy premium. As an example of how much a PPI policy can add to an overall loan amount - the average PPI reclaim amount for a £10,000 loan is approximately £2,000. In other words, you pay no upfront costs and claim back PPI of £2000 that was paid towards the unnecessary PPI policy as compensation for being deceived and subsequently taxed by your lender/bank.

Can I Cancel Loan Protection Insurance by Myself?

Without the professional experience, expertise, and assistance of a PPI claims company, the likelihood of an individual claiming back bank charges caused by a mis-sold PPI policy are very low. If you are able to represent yourself in such a case successfully, the process will take weeks longer, and you'll have to conduct a lot of research. Ultimately, the answer to the question "can I cancel loan protection insurance" is a resounding - no. Loan protection insurance cannot be canceled, however it can be disputed, and you can reclaim all of the funds paid towards the policy throughout the duration of the loan. Thus, if you extended the question to "can I cancel loan protection insurance payments and reclaim previous payments", the answer is a resounding - yes, with the help of a qualified PPI claims company.

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