does this mean if I have payment protection on a loan that i may not have to continue with the payments?
Does anyone know?
2006-09-06 16:42:45 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Best to check the small print as they may only cover the interest but not the bulk of the loan, they may expect you to make up any shortage later or from your redundancy
Normally only way to get out of a loan is to declare bankruptcy
2006-09-06 16:47:17 · answer #1 · answered by jules 2 · 1⤊ 0⤋
I would think you are covered if you meet the conditions of the loan protection agreement,
The redundancy is being forced on you and not voluntary
you had no prior knowledge that redundancy was going to occur.
They will require proof from the job centre (UK) to say you are signing on to seek new employment
There may be a "waiting" period say no payment for the first 28/30 days then a payment to cover the loan after the end of the second month.
2006-09-07 01:20:31 · answer #2 · answered by Russell B 3 · 0⤊ 0⤋
If you have payment protector on a loan, you should be able to claim on it - providing that the redundancy was compulsory. If you're taking voluntary redundancy then forget it.
Your best bet would be to contact the lender immediately and find out what the procedure is. Its better to have this sorted out in time for when your money stops. There could be a lot of red tape.
Your payments will continue for a period of time (up to a year) and might consist of the whole repayment itself, or just the interest (as others say). One thing for certain is that you won't have to make payments during your time out of work, if your claim is accepted.
2006-09-10 13:40:54 · answer #3 · answered by nemesis 5 · 0⤊ 0⤋
I think you will need to read your contract.
I think with some loans, as long as when you take out the payment protection you are not aware that the you will be made redundant or be sacked within 90 days of taking out the PROTECTION.
I would hate to claim on insurance as they are very suspicious and are reluctant to pay out anyway.
Bare in mind, that you will need to keep making payments on the loan until they verify and confirm that they will be making the payment protection on the loan for you.
2006-09-07 10:55:10 · answer #4 · answered by Rebz 5 · 0⤊ 0⤋
It depends on the small print on that loan. But I think not. I expect that the payment protection usually kicks in if after a certain period, you've not been able to secure another role.
I'd suggest you call the company annonymously and ask them the questions so that you give them the "right" answers.
2006-09-07 07:46:22 · answer #5 · answered by scallywag 4 · 0⤊ 0⤋
It means the loan repayments will continue for a period of time if you no longer have an income. However I don't know how this works in respect of your redundancy payout.
2006-09-07 22:56:02 · answer #6 · answered by OzAngel 2 · 0⤊ 0⤋
Firstly make sure you sign on immediately and contact your insurance provider. You will need to keep making the payments until such time as the insurance provider takes them over. Each policy is different and I would suggest contacting the companies that these would effect immediately so that any forms that need to be filled out can be sent to you.
2006-09-07 03:45:00 · answer #7 · answered by MunchkinMooncarSausage 1 · 0⤊ 0⤋
If you paid a supplement on the loan to govern such a contingency then I should think you're OK. Just check the small print.
heavenlyhaggis
2006-09-07 00:10:28 · answer #8 · answered by d.perrot@btinternet.com 3 · 0⤊ 0⤋
Generally yes but I'd check it out further.
2006-09-06 23:48:28 · answer #9 · answered by sarah071267 5 · 0⤊ 0⤋
check every word TWICE
2006-09-07 00:37:26 · answer #10 · answered by Anonymous · 0⤊ 0⤋