another welcome question

melamoo

i took out a small loan i with welcome in dec 2007, for 24 months i took out the ppi not realising how much that would bump up my monthly payments, it cost me an extra £30 a month. they would not let me cancel. i have never missed a payment but fell into difficulty when i was signed off sick from work. i sent the claim for the insurance, i last paid oct this year and then cancelled the dd as i assumed that the insurance would pay. ive had letters and many phone calls to my old adress (they spoke to my mum and disclosed confidential info fully aware that that was no longer my adress or phone number) any how she said that the insurance will not pay and wouldnt say why, i am still off work and am unsure as to what my next step is? do i just pay up? but if so what was the point of the insurance? the total owed is £244, that is for the final 2 months @ £82 per month the rest is charges that have been applied for letters and phone calls to the wrong address, is there anything i can do about the breach of confidentiality