Norwich Union we've overpaid on policy loan

MrsJam

Hi,

We have an endownment policy with Norwich Union. In 2001 we took out a loan against this policy for £3,700. I set up a S/O to pay them £50 per month which was to pay for the interest only. We received a letter from NU recently about our loan and that the interest charge for this year would be £342. It's only then I realised we have been overpaying for the past seven years. I rang the call centre and spoke to a manager there but when I asked what had happened to the surplus money we had paid over the years he could not offer an explanation, just that he would ask for advice and ring me back, which he has yet to do.

Will we be able to claim this money back? Thanks for reading this any advice much appreciated.

EdInvestor

What were the T&Cs on the loan interest rate payable?

MrsJam

Hi,

the interest rate is 8.50 p.a. and according to the person I spoke to at the call centre the rate has not changed.
T&Cs
1. Interest will acrue from day to day.

2. the borrower will pay interest on the loan at the interest rate above or as may be varied from time to time by the lender. Interest is payable on the payment date above and on the same date each year.

3. There is no specific repayment schedule and the borrower may make loan repayments at any time.

Thanks,

EdInvestor

Write to them requesting a full statement of the loan account. You may well have paid off most of the loan by now.

MrsJam

Hi EdInvestor, Thanks for that. I spoke to a manager at the call centre who said the loan account now stands at £3,900 so none of the overpaid money has gone to pay the loan off. Will write to them to request a full statement though.

EdInvestor

One suspects there may be fees and charges in there gobbling up the money