london and scottish finance

[janette2266]

hi i got out a loan of �500 with london and scottish but to get it had to clear a debt of �800 included in the loan they first added one lot of optional insurance to the value of �381 making �1681 they then added on to the new total another �381 getting another total then on top of the new total another �381 then the interest leaving us with a grand total of �3000 is that right please help as we have another one also only thats over �7000 with all the add ons for borrowing just �1000

[Oneeyedvic]

Definitely sounds wrong - but it also sounds like you have a bad credit rating - and these types of lenders will charge you what ever they can get away with.

Bear in mind that insurance can not be a requirement of taking out a loan, and that you can cancel the insurance.

Why not cancel the insurance and if you think you need insurance, go to an independent insurance broker and take it out yourself.

[jennyp]

Sound wrong to me also. It looks as though they have doubled up OPTIONAL insurance. It looks as though its a company to avoid like the plage.

[Dassie]

If it's "optional" then opt out . Companies make a lot of money out of "insisting" you take out insurance when you don't have to do so. Read your contract and cancel if necessary.

[janette2266]

thank you so much for the advicei really did think it was extortionate but must add that have only just really looked into it of recent as we are trying to get our finances sorted so went through the papers and only then realised.