Northern Rock Offer Letter

stacmac2003

I followed the advice on this site and wrote off a standard letter to Northern Rock re PPI I took out on a 10 year loan in 2002. They sent me a form to fill in and I wasn't hopeful but today received a letter saying that they would 'refund PPI premium of £3,522.96 as well as 8% interest on premiums paid totalling £986.76'. To get this, I need to return a form and they will then send me a new credit agreement for remaining loan over 3 years (£96.31 for 36 months = £3,467.16) and once this is signed I will get refund of premiums plus 8%.

My questions:

1) is it really that easy, have I really just been offered approx £4,500 (albeit of my money!) back or is it just the £986 they are offering?
and
2) why do I need to take a new loan - why not just pay off and give me a refund?

Any advice appreciated.

bettykitten_69

1)They appear to be offering to remove the PPI from your loan, rewrite the remaing balance and give you £986.76 which is the 8%

2) you need to take out a new loan if there is a remaining balance. I would guess your balance at present is about 7000.00 ? so removing the PPI and their offer of £986.76 still leaves a balance which you need to pay.

naijapower

Yes. Very correctly stated by bettykitten_69
.Another success story

stacmac2003

Thanks but my balance at present is only about £5K?

stacmac2003

Sorry to ask so many questions but one other point to note is that the original amount of the PPI on the loan agreement was £3,488.96 and this was the sum I requested back plus 8% in my letter.

di3004

stacmac2003 wrote: »

I followed the advice on this site and wrote off a standard letter to Northern Rock re PPI I took out on a 10 year loan in 2002. They sent me a form to fill in and I wasn't hopeful but today received a letter saying that they would 'refund PPI premium of £3,522.96 as well as 8% interest on premiums paid totalling £986.76'. To get this, I need to return a form and they will then send me a new credit agreement for remaining loan over 3 years (£96.31 for 36 months = £3,467.16) and once this is signed I will get refund of premiums plus 8%.

My questions:

1) is it really that easy, have I really just been offered approx £4,500 (albeit of my money!) back or is it just the £986 they are offering?
and
2) why do I need to take a new loan - why not just pay off and give me a refund?

Any advice appreciated.

Hi there

I would ask the direct the amount your expecting to receive, tell them you are confused on this matter.
I would ring them.

If they have stated £3,522.96 as well as 8% interest on premiums paid totalling £986.76' then that should be the amount you receive, but make sure with them by ringing them, they should confirm this for you.;)

Every company are different where some will if you cancel the insurance then for instance, they expect you to have a new loan to clear the other, and the new one without PPI.

Have you still the terms and conds of the policy, if not maybe you could check them out online.;)

They obviously agreed with your letter, so well done.:beer:

lazerdave

Congrtas Stacmac ! I would say the same as Di, they are going to pay you PPI plus 8% interest minus tax on the interest. One question from me, as I also have a claim in, is how long has this process taken you ? Again well done !

stacmac2003

I only sent the first of the template letters on 16 March and they sent me a standard form to fill in so quite amazed at how quick and how easy this has all been!