Clydesdale Bank PLC loan insurance.....

[baba484]

Hi guys an’ dolls!

 

Last year I took out a loan with Clydesdale Bank PLC, usual tale of a life circling the drain, no way out of debt, get a loan and borrow your way out! Well as you have all figured out that never works and indeed hasn’t in my case at any rate.

 

I inquired today whether or not I was paying insurance on the loan to which the answer was yes I was. My eyes lit up, “hello” me thinks, chance of getting something back to reduce my burden. I was slapped down with a “No, the payments you have made to date cover you (insurance wise) up until today. If you cancel the insurance we would adjust your future payments reducing them accordingly.” Bah humbug thinks me, sits down and sulks.

 

I thought that when you took out a loan for £X they calculated the insurance £Y and added them together as £Z with interest being charged on the total, basically you are “borrowing” the money to pay the insurance sort of thing. Now if I am cancelling the insurance that would mean that all payments and interest charges attached to £Y are null and void. My total debt for this loan is based on £Y addition over the course of the entire loan is it not? Am I therefore not entitled to some interest reduction due to losing the £Y millstone?

 

Quick example of what I mean, ignore figures as they are for illustration purposes only so you kind of catch my drift as it were.

 

Borrow £100

Insurance £10

 

Interest 20%

 

Therefore the loan is for £110 = 110x20% = £132

 

But

 

Loan without insurance £100 = 100x20% = £120 a difference of £2 (£132-£120 =£12 less the initial £10 quoted for the insurance) over the length of the loan!

 

Any idea folks? I haven’t as yet cancelled the built in insurance, I am aware of TV adverts hawking their wares trying to get you to call them so they can do the “injury lawyers for you” routine but I shall trust this communities judgment. I hope all the above made sense.

 

Baba 484

[Dipply75]

Hiya Baba484

 

My first guesss is that you got some untrained monkey that told you a big fib!

 

Just started a fight for my mate who found out she had insurance that she specifically refused, and only discovered this when her first ever statement came after paying the last instalment.

 

The insurance was added to the cost of the loan and interest charged over the full term - most are done that way, you are right...so if you cancel now you are entitled to a partial rebate of the premium and that extra interest.

 

I note you said you had to go and ask if you had insurance - were you not aware already, or was it just one of those things you cannot remember lol?

 

Other thing is to ensure that you are actually able to claim on the policy - ie, have you been paying for something useless anyway?

 

I would start by sending a CCA request, get a copy of your agreement and see how much you paid, what the figures are etc