Loan Insurance Protection - is this unfair

[JohnPeard]

I haven't posted for some time, as I am still locked in battle with Lloyds - however another query has arisen, and I would like some advise please.

 

Over 4 years ago I took out a consolidation loan with Lloyds of £20K, repayable over 5 years. I was 'encouraged' at the time to also take out payment protection insurance, costing a wapping £4333, which was added to the loan sum. The insurance, according to the contract was optional.

 

The repayment alone on this is £93 p.m, and with less than a year to run on the loan, I don't need the insurance - in fact I could back the loan earlier if I could 'knock this off'.

 

With the science of hindsight, is was this just a mistake on my part or are these 'insurances' unfair? Is there any history of banks mis-selling these?

 

Can I 'drop' the repayment for loan insurance, if I no longer need it?

 

Thanks for any advice !

[nicsussex]

Is there any history of banks mis-selling these?

 

I think you will find many threads on here about mis-selling of these - either because the policy was not fit for purpose or was over-priced or was not truly optional but that in fact the loan was conditional upon it

[JohnPeard]

Thanks NicSussex for the swift answer - greatly appreciated.

 

I would agree that all were true. But what would be the strongest line of attack? Are there any templated letters I could 'pinch'?

 

I expect that this claim would not be as clear-cut as 'normal' penalty charges?

[Will Scarlet]

John - PPI claims are very different as they depend on your personal circumstances at the time of taking out a policy and the way it was sold to you.Whilst the legal aspect still falls under the heading of "contract law" PPI cases are "mis-selling" cases and the crux is whether or not you were "mis-sold". Have a nose at the PPI threads and shout if you need help. There's always some one out there with an answer to your questions. Good luck.

[JohnPeard]

Thanks Will,

 

I'm now 'threading' ...

 

JP