Cancelled PPI - Now What?

WOBBLY_BOB_2

I am new to the site but having read the stories I have been inspired to take action!

I have a loan with Natwest with 16 months left outstanding. The monthly payments are £370 including PPI. Having looked at the paperwork I found that I was being charged £74.95 for the PPI within those montly payments.
I have sent off the questionnaire and I have also now cancelled the PPI BUT in response to me cancelling the PPI I have had the following response:

"When you cancel the Loan Account Insurance, your monthly payment figure will not reduce by the amount of the monthly insurance that is quoted on your Consumer Credit Act agreement form. This is because the repayments for insurance are higher at the start of the loan, due to the risk involved, and lower at the end of the loan. Therefore the longer the loan has been operating and receiving the benefit of the protector insurance cover the less the montly repayment will reduce."

Can anyone tell me if this is normal practice? My repayments are goint to reduce by the huge amount of £14.88. I cannot find anything in writing about this on the paperwork I have previously had and find this a little insulting. Am I wrong to have assumed that my payments would reduce by the amount given on my Consumer Credit Act Loan Agreement?

Do I write to the bank and ask for more of a reduction? I just don't know.

Any help or advice is appreciated as I am starting to think that I am on a hiding to nothing and will end up not getting anything back other than my £238.08 that I will not now be paying.

Cheers

di3004

Hi and welcome

I would check your policy booklet details, if you have these, if not then they should supply them on request.

All banks differ, but I assume its because you did not cancel in the cooling period where the repayments would therefore then be reduced, but because this is after that period, this may be the way they deal with this.

However, you should receive all the ppi back you have paid to date, interest etc.

Good luck with this and hopefully others who have dealt with this bank will post up of their experience.

Di

WOBBLY_BOB_2

Thanks for your reply. I will contact them today to get a copy of the booklet. Fingers crossed

di3004

WOBBLY_BOB wrote: »

Thanks for your reply. I will contact them today to get a copy of the booklet. Fingers crossed

Your welcome, I would also check online on their website as well if you can for the details, they may enclose them on there.;)

BigCraigJohn

Dont worry too much, if the policy was mis sold you will get every penny back + interest.

I actually thought they had to now refund on a fair pro rata rate and restructure the loan but not sure there.

dec22

This due to the way the rebate is calculated. Even though you pay the same amount every month for the full term of the loan, they say the risk is higher at the beginning of the loan thereforethe longer the loan runs, the smaller the rebate.

I did the same thing with my RBS loan, I cancelled my PPI and my payment hardly reduced. I then went on to claim for misselling as I wasn't given an option, was told I had to have it to get the loan. RBS refunded the full amount paid to date and reduced my payments to reflect them without any PPI. I didn't realise I had PPI on my previous 2 loan and they refunded that as well.

I'm not sure if you would have grounds for misselling, might be worth looking through the discussion thread or search thread with RBS or natwest to see if you had a case. If so, then send a complaint to RBS/Natwest. Have a look through the online resources thread at the top of the forum for help or just ask here on the forum if you are unsure.

Good luck.