AIB Payment Protection Plan

[judge]

Recently took out a loan with the AIB with payment protection. I look at the balance today and they have added the pp as an upfron charge to the loan account. So in effect, even if I was to pay the loan off early, I will have to pay the pp charge for the full term of the loan. I have had a couple of loans in the past where the pp was charged monthly so if you payed the loan off in six months instead of 12 then you only paid 12 months pp. Can someone tell me if I am missing something here or is this standard?

 

[DrMoriarty]

First read (or presumably reread?) the small print very carefully to ensure you didn't sign up to this in the T&C. Then contact the bank for an explanation/refund if appropriate.

if you payed the loan off in six months instead of 12 then you only paid 12 months pp

Ehm, am I missing something here?

 

[judge]

just a typo
pay it off in 6 months only pay 6 months pp.
just shows what blind rage can do for you

Will reread the ts&cs and update post accordingly. Just seems like another way of getting more money out of people.

 

[DrMoriarty]

You're right there (and just being pedantic about the typo! )

While you're combing through the fine print, check (a) that you were made fully aware of the T&Cs of the repayment protection, and given the option to decline it, and (b) check specifically that the (full?) up-front deduction stunt was flagged appropriately. Also (c) check what they say about redemption fees in the event that you clear the loan early - another common "gotcha"...

 

[Madam]

I took out payment protection on a loan which I got in january to go travelling, in August I restructured the loan and decided to cancel the PPP. It was so stupid of me to take it out in the first place as I had deferred payments until the end of Aug when I got home. I made countless phonecalls to AIB about it, they were basically trying to scam about EUR300 off me when the total I paid for PPP was over 500 Eur. Such a joke when I only had the loan about 8 months at that stage and the term was 3 years!!! I eventually got someone with a brain in my local branch who managed to refund me about 330Eur. DOn't bother calling customer service, get on to someone in your branch and fight your case. Your best chance would be to restructure and lose the PPP altogether...that's if you have steady employment etc and are confident there will be no prob making the payments.