Help with reasoning with the bank

miamoo

HI again, I could do with some advice. My boyfriend has a large loan with natwest , he is halfway through paying for it. The bank made him take out PPI when he took out the loan (which he has made a claim on, 2 payments)
He started his own cover a few months ago with the post office, he rang the bank and cancelled the PPI. The bank then wrote to him saying, its now cancelled but you still have to pay the £5,000 remaining PPI. So he has no cover but still has to pay the £5,000. (he only claimed £600 while he was off work!)
He went into the bank to complain, and asked to see a copy of the loan agreement, they have just rang and said they can't find it. So where do we stand, dont get me wrong he wants to pay off the loan, but would it be possible to 'bargain' with them and get them to remove the PPI using the fact that they can't find the loan agreement so can't legally enforce the loan?

~Beanie~

I'm not sure that you can cancel the PPI now he has actually made a claim from it!

It would be like paying for your car insurance in installments, making a claim after 3 months and then trying to cancel the policy and pay nothing else!

Why did he take out further cover from the Post Office when he already had PPI on the loan?

smudge2002

Hi,

I've just had the same situation with First Direct. I wanted to settle a personal loan with them which had the PPI premium added on up front. As I made a claim last year there was no PPI refund included in the settlement figure. When I queried this I was told that as I had made a claim there could be no refund and that this is clearly stated in the T&Cs. I had a call back from their Customer Relations department earlier this week and have been told that if I repay the amount paid to me in the claim then I can get a refund of the remaining PPI premium included in my loan settlement figure. Hope this helps.
Smudge.

miamoo

He took out the post office cover to save money. He can cover 3 credit cards and his bank loan for less than his bank PPI. He did ring the bank to check he could cancel before he went ahead, they said yes no problem. Then he got a letter saying its cancelled, but you still have to pay. Why didn't they just say no you can't cancel as you have made a claim!

miamoo

Thanks Smudge thats very handy to know