advice wanted for newbie please

yan101_2

hi,

il be brief in my situation and the description. i got a loan from natwest 5 years ago for a car, the loan escalated by increasing etc to £9400 i have my agreement in front of me as i have just tried to re claim ppi, my argument was that i did not want ppi but i was told that if i didnt take it i could not have the loan, so obviously i took it as i needed the money. natwest say that because i signed the paperwork i must have wanted it and wont refund the ppi, which is over £2000 plus interest over the 5 years, also in the last 5 years i have made my full payments for the loan and also reduced payments through a dmp for 5 years but the amount i now owe is over £10,000 my loan agreement dosent seem to have the right figures, stating that the loan amount is £13000 total amount replayable £15000 (rough figures). it seems to me that all interst and ppi is piled on top of what i originally borrowed and i havent even touched paying back what i have borrowed yet in 5 years. do you think it is possible for me to get the payments i have made ofset to what i borrowed, regardless of interest and ppi, becuase if that is possible i may only now owe around £4000 instead of £10000. i dont know the ins and outs of the legalities and paperwork but surly there is someone out there that can look at all the paperwork and negotiate a reasonable solution to this, its not as if i dont want to pay back what i borrowed as i am paying it now and have done for 5 years, i just want what i have paid to reflect what i now owe. it dosent seem as if interest was frozen like i was originally told. i feel like just writing a letter to natwest asking someone to look into it, but i highly doubt anyone would even care, in this day and age you have to find loopholes and be as crafty as the banks just to make sure your not conned out of money, any info on what can be done to help me would be amazing, is there a letter i can write to have someone look into my loan at natwest? take away ppi as i now dont need it or never even wanted it and im on a dmp and have never claimed on it? can i get it reduced taking into account the payments i have made regardless of the interest they are charging? can i get a portion of what i owe written off so i can pay back what i do owe more quickly?

what confuses me is that they are saying i owe £10000 but every 6 months they call me and say if i pay it off today, i only have to pay £8k or £7k, why wont they then reduce what i have remaining to pay to 7 or 8 thousand???? i hope my ramblings make some sense and someone may have an answer or possible solution for me.

sofababe

The first thing I would do is ask to see a copy of the Loan Agreement where you borrowed the £13k! If you are on a DMP the interest should have been frozen. Whatever the balance was at that point is the amount you should have to pay. Ask to see a statement with all the charges and credits. I have read through your post a couple of times and still can't see how they say you borrowed £13k if you have the agreement which is for £9400. How much did you borrow? Were you on fixed repayments before the DMP? Any loan I've had has had the interest added at the start and a regular amount paid off that total monthly till its cleared. Simples!!

yan101_2

ill write the basic figures for you. when i increased my loan it was to consolidate another loan also

total income net: 779
natwest loan £7464
other loans £2000
total liabilities £9464

purpose of loan refinance this bank total cost of item £11200

next page says:

key financial information
loan £13491 48 months
total amount payable £15724.80

comprising loan repayments £271.96
insurance loan repayments £55.54

annual percentage rate 8%

loan a+b up to £7464 for refinancing account number .....
cash loan of £3737.14 plus any balance of loan anot used for refinancing

insurance ££2291.00 for the premium

total charge £2233.80 comprising interest £2233.80

no i know all i did was consolidate the £200 into my natwest loan of £7464 im assuming they got to the £15k mark with payment protection and interest, but i only borrowed £9464, the cash loan of £3737.14 i dont understand because the re finaincing was only to consolidate the other loan?????

yan101_2

*bump please*

barbiedoll

If you were told that you were unable to have the loan unless you took PPI, then you were almost certainly missold this policy. Have you checked out the MSE guide to reclaiming PPI?

You should write to Natwest, using recorded delivery (make sure that you keep a copy of your letter) and send it to the manager of your branch where you applied for the loan, there is a copy of their complaints procedure here...

https://www.natwest.com/secure/global/contact_us/complaints_procedure.htm

I'm sure there are template letters on the MSE guide, I'll have a look in a minute.

Sadly, the repayment of loans is always a shock, I'm having the same problem myself at the moment. It seems as though the balance never goes down for the first few years when you're paying the interest and insurance premiums. You should be able to reclaim the PPI though, and that will reduce the balance a bit at least. Whilst you are at it, it's worth requesting that the interest and charges are stopped as you are unable to make headway into the debt and although you are on a DMP, they are not under any obligation to stop interest, they may do so if you make a complaint. Don't bother trying to ring them, their staff have no clout and if they tell you that you have no chance reclaiming your PPI, they're obviously not that well trained either! Keep everything in writing so that you have a paper trail. Good luck, let us know how you get on.

yan101_2

i have tried reclaiming the ppi and have been sent a reply atating that because i signed for it, then i must have known what it was and wanted it. i now am in touch with the financial ombudsman. as for the interest, it was frozen 5 years ago, yet i still dont seem to have made a dent, i have calculated that i have repayed around £6000 back over the past 5 years