Northern Rock - PPI & Interest 44.7% of total Repayable!!!!

Hopesprings_3

I have to say that these points have been going round in my mind for some time now and a combination of fear and stress has stopped me doing anything!! I am SO angry (at myself and NR :mad::mad: ) as I will be paying 44.7% of the total repayable as interest and PPI)

To ensure that I do not make my situation worse I have been reading this forum in an attempt to understand where I am at with my loans!!! I would be grateful if someone would look at my assumptions and point me in the correct direction.


1) Was I mis-sold by Northern Rock?

When I applied for the loan in a branch I opted for the PPI but with some discussion my husband and I asked after the loan offer was made to see what the rate would be if we took it out without PPI and were told that we would have to go through the whole process again, the implication/inference was that it would either affect our credit record or that the rate would be higher. So having been offered it we didn’t want to risk these options.

At a later date I tried to cancel my PPI but was told over the telephone that as it was after the 30 day period I would need a new loan if I cancelled and that it may not be at such a favourable rate. I was not advised that this was the case when I took out the loan and it does not say this anywhere in the paperwork I have.

2) Can I cancel the PPI?

It would seem that I already have the answer to this! But I would like to think that the recent FSA ruling whereby customer must be treated fairly would apply here whither I was mis-sold or not. The last thing I need is to cancel the cover and then find that I am paying nearly as much as has happened to a number of people on this forum.

3) Single Premium Policy?

My document is laid out thus:

Loanprotect Loan Cash Loan Total Loans

Loan amount 8537.76 22000.00 30537.76

Total 11112.80 28660.80 39783.60

Monthly 92.69 236.84 331.53
Payment

The apr is 5.6%

My documentation states that the policy end date means ‘ the expiry of 120 months from the start date’ Presumably this means that it is not one of those policy which covers only the first five years? I ask this because the more I look into this nothing seems to be what it appears and I do not want to miss out on any aspect that strengthens my case.

4) Policy date

I have a copy of the policy provided to me at the time I took out the loan and it is between Pinnacle Insurance and Northern Rock and is dated 1st October 2003 – does this matter as I took my loan out in Nov 2005? In fact it is the only date I can find on any of the documents I have which I find very strange – or is this common practice?


many thanks

di3004

Hello there.;)

I would most certainly give it a go, these type of policies are costly anyway and with your reasons go for it.

Here is the link to more on reclaiming, with templates, a checklist of mis selling reasons and useful information, read through it if you can, this will also give you more of an idea on how to take this.
You can use the templates if you want to, or as a guide with your own words and of course the reasons you have, and if any of them occur to you on the checklist write them as well.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

They have 8 weeks in full to respond, do not worry about writing the amounts down though.

Keep at them until they uphold/resolve in your favour, or until they issue you with the final response which should also if eligible enclose details of the financial ombudsman service (FOS), you can take your complaint to these if your not happy with the outcome.

Post by recorded delivery - for your proof of posting, good luck.

Please keep us posted and ask for help when required.;)