Banks = Daylight robbery

[milly143]

I'm fuming with my bank. Last year I took out a �5000 loan with insurance. Last night while trying to sort out my messy finances we worked out that I would be paying almost �9000 by the end of the loan. So i decided to cancel the insurance (I have ways and means to pay it should the worst happen) but they couldnt just cancel it could they. They would in effect have to give me another loan with an interest rate so high that I would end up paying even more. I suppose they probably like getting their fix of monthly charges from me but how the hell is anyone supposed to sort their money and debts out when the banks are allowed to act in this way. I am so angry! Rant over.

[kevb0444]

Hi..you should be able to cancle the insurance with out having to take out another loan. I would go to your local CAB and speak to them about it.

[khana]

I sympathise with you milly, however the insurance should have been explained to you at the time you took out the loan, along with an agreement form detailing ALL of the costs, so it should not have been to much of a shock really.

[kazza12345]

i dont think you can blame your bank when you have a contract with them, which you entered into willingly presumably, and they have fulfilled their part of the bargain, but you want to back out of yours a year down the line! It seems that it is you acting unreasonably, rather than the bank.

[Ethel]

The banks will put the interest rate up if you do not have insurance with them because it is a bigger risk to the bank.

With insurance they know they will get their money should you die or be unable to work for any reason.

Always read the small print and make sure you fully understand the terms of anything before you sign. I imagine you were happy at the time the loan was agreed.

[Hgrove]

I sympathise, banks are the biggest crooks ... along with insurance companies, estate, travel and employment agents ... They obviously glossed over the nasty bits. Do make a fuss and contact the newspapers if you don't get any joy. There is a column on The Times (or Sunday Times I am not sure) by a journalist called Roger Anderson, and one on the Guardian/Observer by a journalist called Margaret Dibben; all the newspapers have them I think.

[milly143]

I know I don't really have a leg to stand on because I agreed to it but it was never fully explained to me that the total cost would be almost �9000. And the fact that they say I have the right to cancel sounds wonderful until they tell you that you'll pay more if you do. When I took the loan out they were fully aware it was to help my financial so I don't know how they sit comfortably with the fact that it's now doing the complete opposite. I've learnt my lesson I suppose.

[Oneeyedvic]

Under the Consumer credit act 1974, there are certain things that are stated on a form INCLUDING: Total amount repayable.

Sorry to sound unsympathetic, but if you get a copy of the form that you willingly signed, you will see very clearly the amount repayable, the loan amount, the number of payments etc.

Even if they didn't explain the amount repaid, are you that dense that you can't figure out that the monthly payment multiplied by the number of months is the amount you will repay?

Credit is a priveledge not a right - take responsibility for your own actions and stop looking for other people to blame.

Rant over ;-)

[milly143]

Thank you oneeyedvic. I guess I am that dense.

[Sparkles3]

you could find out how much you owe and see if you can get a loan elsewhere from a different bank at a lower interest rate and hence pay off the loan early. It may cost you to do that though, so check out the small print in advance of making any decisions!

[themas]

If you pay off the loan early you will probably have to pay most of the interest. You need to ask the bank for a settlement figure to find out.

Was the loan conditional on you taking the insurance, or was the insurance described as being optional? If the latter you might just possibly have some cause to complain if they refuse to let you cancel it, & could go through the bank's complaints procedure. However, I think what normally happens with these is that there is a one off premium for the insurance which is paid to the insurance company (usually a subsidiary or associate of the bank) up front out of the loan amount. If this is the case, I don't see any way it could be cancelled.

[gordy_b]

Contact the Financial Services Authority who are the regulator of all insurance policies. There is no way on this earth you cannot cancel an insurance policy while retaining the loan that it covers - it's a classic case of the bank trying to blind you with science.

[themas]

gordy_b

If - as I suspect is the case here - you borrow from the bank to pay the premium for the insurance policy then it doesn't matter whether you cancel the policy or not; you will still owe the money to the bank. In these circumstances it would not be wise to cancel the policy because it just might be of some use to you.