Cancelling payment protection

eth0_

Is it possible to cancel payment protection on a loan and do you get a refund?

I've been strung along by my bank and the insurance company - I went in to restructure the loan and they told me oh no, you should get that loan paid by your insurance. I told them I had been on a fixed term contract that wasn't renewed and they still said I should be eligible so I went and sent the forms off to my previous employer, then got the social welfare to stamp it (this took over a month in total), waited 2 weeks and then got a letter from the insurer saying they ONLY pay out in cases of redundancy or serious illness!

So i'm not too happy about continuing to pay for this useless insurance.

jimoc

I've cancelled in the past simply by sending a letter to the loan company telling them that I no longer wanted payment protection.
However you can't get a refund for previously paid in amounts unless you can prove that the payment protection was mis-sold to you.

Jet Black

Some banks operate differently on how they pay payment protection to the insurance company.
Some banks pay the full premium at the start of loan and it cant be claimed back. It would be a lesser amount of banks that do this though.

I know from the loan I have reading the terms that I am allowed to cancel and given a refund.

Sasquatch76

In the past when I topped up a personal loan, I received a refund on payment protection.

My understanding was that, because the total cost of payment protection was spread out over the total term, I was entitled to get back the PPC for future repayments which would now not be made (as the agreement had been replaced with a new one).

I don't know however if this applies to loans paid off before the term agreement runs it's course, or if PPC itself is cancelled.

Iamhere

If the premium was paid in a lump sum at the start as part of the loan then you should be able to get a refund but this insurance is usually set up in a way that uses most of the premium in the early years as there is more risk at that stage, usually the only way to cancel this cover is to take out a new loan. Out of interest how long was your contact for. I work for a PPC company but i deal with the UK market

eth0_

It was for six months with a view to going permanent but the company ran into financial difficulty and couldn't keep me on on a permanent basis.

I wouldn't mind only I was told by two people at the insurance company that I "should" have my claim approved. I even said "are you sure, I thought you only paid out for redundancy?". Annoying!

Iamhere

That is annoying, i think Irish and uk terms are quite similar and usually its 24 months or 12 months if the contact was renewed (this might not be the case with your policy).