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Can I Cancel Payment Protection Insurance

One of the biggest mistakes that people make when having been mis sold PPI is to think that they can just stop paying on it. Before doing that, take the time to really think about what you are doing. The key to answering the question "Can I cancel payment protection insurance?" is to understand how they sold it to you in the first pace. Once you have that information you will never need to ask "Can I cancel payment protection?" ever again.

Understanding PPI Premiums

Unlike so many other types of insurance, PPI only has one premium and that is charged at the time of the loan. The cost can run anywhere from about 29% the amount you are borrowing to 50% or 60% and some extreme cases have cost even more, believe it or not. Here is what happens. The lender mis sells PPI, attaches that onetime premium, amortises the whole thing together, breaks it down into monthly instalments, which of course include interest! So I ask myself, "Can I cancel payment protection?" Of course not! If I do I will also not be paying on my loan which means that it will go into default! The next time you think about mis sold payment protection you will be even more angry now that you know this! Once you have been scammed into carrying this cover nothing good can come from asking "Can I cancel payment protection insurance."

How to Go About Cancelling Payment Protection

So you have asked yourself, "Can I cancel payment protection since I can't use it and it was mis sold to me?" Now you realise that you can't because it is tied into your loan and will put you in default. There is however another answer to "Can I cancel payment insurance?" and that is to file a claim against the lender. You will still need to keep paying those monthly payments while your claim is being reviewed. But once your claim is settled favourably you will never need to make another payment for that cover again. Just one more piece of advice is in order here. Don't think that submitting your claim to the lender relieves you from making payments. It is the same thing in both cases. If you stop paying then not only will your insurance be cancelled but you may lose your loan as well!

Can I cancel my payment protection insurance? Of course you can if you go about it in the right way and if it was mis sold. If it wasn't mis sold then you would perhaps need to seek the advice of a solicitor to get out of a legally binding contract through the courts. However, if you have been mis sold PPI and hire the services of a PPI claim company they can take care of that for you whilst dealing with your claim. Remember, if the cover was mis sold, it is not a legally binding contract and it should actually have never existed in the first place! To see if you can file to cancel your loan insurance talk to a claims specialist on 0207 471 2000.


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