PPI question

Confuzzled32

Hello,

I have a question to do with PPI on a loan and wondered if anyone has any advice.

My partner and i have a loan with Natwest, when my partner was made redundant we activated the PPI for the loan, the PPI on this loan doesn't seem to be as straight forward as we though PPI was, in our mind and another policy we have, the loan is stopped and paid by an intermidary company. However with the Natwest loan the policy was not cancelled and the payment continues to come out, however the last payment we made is taken kept aside and put back into the account by Natwest before the loan comes out, the loan is then taken out of our bank account and the following month the same thing happens.
Now to me this sounds nothing like PPI in essence we r paying our own loan and its frozen until my partner is back in work.

We are not happy with this but didnt feel the need to complain until today, over christmas the jobcentre has been closed so the relevent paperwork we needed to send to prove we were still entitled to the PPI, wasn't gained until my partner signed on Monday last week, we sent the paperwork straight off and contacted Natwest to say why there had been a delay and we were told a note wud be made on the system.... of course today when we checked the bank had taken the money out of the account leaving us with no money AND slapping 2 charges on the account for the pleasure! Of course the knock on effect is our other bills will not be paid so we will be liable more fines.

I am going to look out the terms and conditions of the PPI but wanted to pick ppl brains.... is this allowed? Isn't PPI something that is suppose to protect u from being fined because of non payment as they are suppose to make the payment.
I am in 2 minds to seek legal advice as to me they could be causing us great financial problems as we had little money whilst being unemployed, if we are slapped with charges because they haven't done their jobs it cud spiral out of control leaving us with nothing... when up til now we have done everything we can to ensure we live by our limited means, payments for unpaid D/D's are excessive at the best of times but will quickly mount.

Thanks