Hi,
Last year I took out a loan with Northern Rock and along with the loan I took out their payment protection insurance. Once the paperwork came through I realised that work, as well as some other policies covered me for the money and therefore their policy wasn't required. On trying to cancel the policy though I was told that as the cheque had already been issued I would have to pay back the total sum (£32,000 - the loan was for £25,000) and then they would re-calculate my interest payments.
Obviously I was unable to payback £7,000 on top of the original loan as I had already paid some other loans off with the cash. However, it's now a year later and I'm beginning to think that this was slightly under hand of them. As far as I am aware the loan and the PPI are two seperate agreements?
Could someone please let me know if I'm entitled to cancel this policy without Northern Rock asking me to immediately pay back any outstanding sum. The monthly cost of the PPI is around the £90 per month mark and as I'm sure you appreciate, I'd rather be putting that money somewhere else.
Thanks in advance for your help and I look forward to any advice given.
Regards,
Ed