Carlo

Hi

Just after a bit of advice.. I am going to take out an egg loan for a few grand. They offer protection in case of unemployment.

I at current have a contract with my employer until August (more than likely become permanant after this). What would happen when this contract ends, if they let me go and I am jobless? Do they put it on hold, do they pay it off for me , what?

Can't find it in the small print and am hopeless as stuff like this.

Any help appreciated


Andy

Diesel

If a fixed term of employment expires I think you are on your own mate... Always a bit pricy I thought - worth it though if you feel a company is a bit unstable I guess, or you're not pulling your weight

MattN

complete waste of money. don't do it.

as your on fixed term contract I doubt very much it would cover you. In the event you did genuinely become unemployed for a length of time and you couldn't pay back your loan - just make them an offer to pay what you can. They pretty much have to accept.

Most peope don't know their rights when it comes to loans.

Payment protection is a real waste of money.

dsmith

Remember reading something in the small print when looking

*think* it was soemthing along the lines or "permanent employment" ro "contract which has been renewed for a continuous period of 2 years".

Mind you might have been somewhere else --- sorry

Deano

dsmith

from Egg - Loans - Payment Protection - Small Print - Ts&Cs


What is Not Covered

The Insurer will not pay benefit if:

i. Your Unemployment occurs within 60 days of the Start Date or notification of Unemployment was given to You (or if, in the reasonable opinion of the Insurer You were aware of a forthcoming notification) prior to the Start Date or within 60 days after the Start Date; or

ii. Your Unemployment is in any manner voluntary; or

iii. You are, at the date of Your Unemployment:

a. engaged in an occupation of which Unemployment is a regular or recurrent feature; or

b. employed under a fixed-term contract of employment (see special notes), the term of which expires on a known or fixed date; or

c. employed on a temporary basis or employed by an employer for a specific task or job and the completion of this task or job has resulted in Your Unemployment;or

d. outside of the United Kingdom for a period intended to last for 90 days or more in any one year; or (SNIP)


Special notes

If You become Unemployed due to the expiry of or during a fixed term contract where Your Employment has been renewed at least once during the Period of Insurance with the same employer on fixed term contracts, provided there is no period between the contracts when You were without Employment and You have been in Employment for a total unbroken period of 1 year or more exclusion iii b will not apply.

If You become Unemployed due to the expiry of or during a fixed term contract where Your Employment has been renewed at least twice during the Period of Insurance with the same employer on fixed term contracts, provided there is no period between the contracts when You were without Employment and You have been in Employment for a total unbroken period of 6 months or more exclusion iii b will not apply.

If You become Unemployed during a fixed term contract which has not been renewed at least once during the Period of Insurance You may be eligible to claim benefit for the period until the original expiry date of the fixed term contract, subject to a maximum of 12 monthly benefits.

ktm1974

Do not take out payment protection. It is a complete rip off. If the worst happens and you are made unemployed as long as the loan is unsecured and you make offers of repayment in line with you current financial circumstances creditors will not generally proceed with Court action. What you have to consider is are you prepared to pay up to 2k more on your loan for payment protection when you may never need it (and your circumstances may not be covered in the policy). It the worst happens and you are made unemployed all that will happen is the length of time it will take you to pay off the loan will increase (if you reduce you payments and have no payment protection). Never believe companies when they say you are covered by payment protection what ever your circumstances, believe me I work in debt recovery I see cases every day where people have been fooled into thinking their repayments are covered by payment protection insurance. If you do decide to take it out and are in the position when you need to make a claim remember is your responsibility to send off the claim follow it up and ensure payments are met until the policy kicks in. If you don't do this you are at risk of receiving a default against your credit history. Take a risk don't have payment protection!!! from PK (using Ktm 1974 computer)

Diesel

PK - is all of this while the debt increases due to interest, or do they normally freeze the interest at 0% once they know you have problems and are doing your best? Cheers

MattN

no they don't freeze the interest. it goes up if anything as the term of the loan increases and your paying the same rate of interest on more money than if you had been paying it back.

It's worth remembering that they don't 'pay' your debt as in pay it off for you. An insurance company (the payment protection bit) make the monthly repayment on your behalf so you don't default on the loan - you then owe the insurance company what they paid for you.

In essence you are not buying insurance like on a car where should it be written off you get some of the value of your car back. You are paying a premimum which is a service that another company will meet your repayments if you can't. They are not not paying off your loan they are simply deffering it for a massive fee.

As said beofre if you make reasonable efforts to pay what you can it's very unlikey you will lose in court, if it even goes that far which it normally doesn't as the court won't accept the claim as you are making reasonable efforts.

ANDY330

"It's worth remembering that they don't 'pay' your debt as in pay it off for you. An insurance company (the payment protection bit) make the monthly repayment on your behalf so you don't default on the loan - you then owe the insurance company what they paid for you."

??? hmmm dont think thats right. Yes they dont pay it off for you ie you owe 10k and then made redundant so they pay 10k, this doesnt happen thats right, but they do pay your monthly loan amount ie £200 for maybe 6 months, then once you start back work, you dont then owe them what they have paid, you just carry on paying the loan

pknut

If any of you are unlucky enough to have gone into default on any credit agreement and your account has been passed to a debt collection agency, its worth bearing in mind the agency has more than likely bought your debt for a reduce fee (in some cases typically 25p in the £) if this is the case offer them a settlement they will more than likely accept as long as they recover the purchase fee plus some profit and you same yourself any thing from 1k plus depending on circumstances. (shouldn't really be saying this as work in the industry but what the hell)