How the heck does this work out?

pmw14282

Bear with me on this, lol...

So this morning I received a rather snotty letter from NatWest about them being un-able to process my loan with them for this month. This despite me arranging for the payment date to be changed, which was confirmed by them on the 15th Feb. The amount they tried to take still included the PPI which I told them I wanted to cancel!

Anyhoo, I went down to see the bank this morning, and they have no idea why the payment was attempted on the 2nd instead of the 10th, as their system shows the change has been approved. So now I have to claim back any charges that have been added, simply because of their failure to communicate! But what really puzzled me is where they got their PPI figure from. The loan I am paying was £110.73 per month, plus £31.50 PPI. Now I have cancelled the PPI they have only taken £11.25 a month off, so I am still effectively paying near enough the same amount I was before I cancelled my PPI. What worries me is because I am now effectively in arrears because of an error on their part, will this affect any claim on my PPI?

marshallka

pmw14282 wrote: »

Bear with me on this, lol...

So this morning I received a rather snotty letter from NatWest about them being un-able to process my loan with them for this month. This despite me arranging for the payment date to be changed, which was confirmed by them on the 15th Feb. The amount they tried to take still included the PPI which I told them I wanted to cancel!

Anyhoo, I went down to see the bank this morning, and they have no idea why the payment was attempted on the 2nd instead of the 10th, as their system shows the change has been approved. So now I have to claim back any charges that have been added, simply because of their failure to communicate! But what really puzzled me is where they got their PPI figure from. The loan I am paying was £110.73 per month, plus £31.50 PPI. Now I have cancelled the PPI they have only taken £11.25 a month off, so I am still effectively paying near enough the same amount I was before I cancelled my PPI. What worries me is because I am now effectively in arrears because of an error on their part, will this affect any claim on my PPI?

Hi, its because when you cancel you only cancel the cost of the policy and get a small rebate against the loan but not the interest that was charged on it. This would only mean your repayments reducing by a little. Was another agreement drawn up when you cancelled? This is usually how they do it?

pmw14282

marshallka wrote: »

Hi, its because when you cancel you only cancel the cost of the policy and get a small rebate against the loan but not the interest that was charged on it. This would only mean your repayments reducing by a little. Was another agreement drawn up when you cancelled? This is usually how they do it?

Hi,

I phoned up their loans hotline and they just said they would process my request. Nothing was said about drawing up an agreement! I just have a feeling I'm being conned here somewhere!

marshallka

pmw14282 wrote: »

Hi,

I phoned up their loans hotline and they just said they would process my request. Nothing was said about drawing up an agreement! I just have a feeling I'm being conned here somewhere!

You would need to put it in writing about cancelling anyway I would think and they would need to write back. Also send everything recorded delivery and then you will know exactly where you stand. If you feel you have been conned you will know then.

dec22

It is difficult to get anything in writing out of RBS/Natwest. When you cancel PPI they just send you a letter with your new payment, no new agreements.

pmw14282

marshallka wrote: »

You would need to put it in writing about cancelling anyway I would think and they would need to write back. Also send everything recorded delivery and then you will know exactly where you stand. If you feel you have been conned you will know then.

So is that to ask them to confirm the PPI is cancelled, or to confirm what the new monthly payment will be?

robbedofmymoney

pmw14282 wrote: »

So is that to ask them to confirm the PPI is cancelled, or to confirm what the new monthly payment will be?

i think what Marshallka is mentioning is that to cancel the ppi they would need you to confirm this in writing and to send recorded delivery for your proof of posting,

if they have already cancelled the ppi you must have signed something to say you wanted it to be removed,

if they have then re-scheduled your loan you should have been required to sign a new loan agreement for the revised payments.

if none of this has happened you need to query why the payments have changed and where is your signature to authorise this.

the problem with front loading ppi premiums into the loan is that if you want to cancel as in your case, the premium does not go down by as much as you think, or is shown on th ere-payment schedule, this is where a lot of people get miss-led.

it would be worth reading the terms and conditions of the actual insurance policy if you have them as these sometimes contradict the credit agreement for the loan. as per Lloyds tsb's, clause 1.4 which effectively says you can just cancel the PPI without having to re-schedule the loan.