Northern Rock PPI

mulhuis

Hi Folks,
Many thanks for all threads reference stopping costly PPI insurance. I took out a loan 3.5 years bback for £17500 with Northern Rock. It was implied that loan would only be granted if I took out insurance. I agreed. Following advice on this site I asked them politely to stick the insurance where the sun does not shine. Today I received a nice letter saying that if I sign the attached letter PPI will be removed reducing payments by £50 a month. The shock was that the amount owing is only £300 less than when I took out the loan. I have now gone back and seen that the cost of insurance was added to loan and interest charged over the total. I feel sick and gutted that in a moment of financial desperation I did not read things properly or have the benefit of such a great web community. My problem now is should I sign or should I push for a rebate on this horrendous insurance. Your views would be appreciated.
Thanks
Terry

fifi2212

Hi - I'm sorry I can't answer any of your questions but I know what you mean when they imply that you won't get the loan unless you get ppi. If you look at my thread you will see the same thing happened to me!

I have started my complaint letter today...

Rafter

mulhuis,

I think you may have a misselling claim if it was implied that the loan would only been granted if you took out the insurance. They cannot make loans conditional by law. This is an unsecured loan presumably?

They will argue the case and you could do some sums to work out how much the same loan would have cost if taken out today and how much standalone insurance would have cost you.

That way you are being 'reasonable' but will still be entitled to £1000's off what you are currently being asked to pay.

Post back with a few more details of your loan. APR - start date, length of loan etc and may be able to give you a few pointers.

R.

mulhuis

Hi Rafter and fifi,
Thanks for your comments. Rafter I would love to take you up on your offer of assistance/advice. Here are the details.
Original loan

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£17,689.60
PPI

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£8,172.60
Total

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£25,862.20
Charge for credit £12,173.00

Total payable £38,035.20


APR 8.5%

In the letter I have received I now owe £17,253.92

Loan agreed December 1st 2003
I'm feeling pretty stupid and sick to ever of agreed to this. I now see that I am paying over 100% of the original amount borrowed. It's amazing what you will do when desperate. Thanks for your help.
Terry