Claimed on PPI - Can I still claim

sgr1234

We took out a 7 year loan with RBS. It covered my husband only and he made a claim on the insurance. At the time when we took out the insurance the terms and conditions on RBS website, which I still have a copy of, stated sickness was covered for 60 months. My husband was sick for 2 years, but the insurance was only paid out for 12 months. Upon questioning this with the bank they stated terms had changed when they joined with Natwest - I did say that it was wrong that they could change the terms mid-way through a loan term, but they refused to budge so we were only paid for 12 months insurance.

Would we still be able to claim back on the PPI we paid?

di3004

Hi there

The answer is yes you can, and it will depend on the reasons you have as well and the amount due will be reduced due to a successful claim being made in those 12 months.

When you make the complaint, you complete the reclaim questionnaire and send to the ones who sold you the account, head office or complaints dept, remember to keep a copy and you do not have to worry about writing the calculation, but when you give your reasons, tell them you are aware a successful claim was made, but you still believe you have reasons to make a reclaim, good luck.

Reclaim questionnaire on step 3 below.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

sgr1234

I take it I just fill out the questionnaire for RBs/Natwest and post it off with as much detail as possible? many thanks for your reply by the way.

magpiecottage

sgr1234 wrote: »

At the time when we took out the insurance the terms and conditions on RBS website, which I still have a copy of, stated sickness was covered for 60 months.

That probably means the policy remained in force for 60 months (5 years) not that it paid out for that long.

However, such policies tended to be single premiums added to the loan which would normally be upheld although the value of the claim would be deducted from the redress.

My husband was sick for 2 years, but the insurance was only paid out for 12 months. Upon questioning this with the bank they stated terms had changed when they joined with Natwest - I did say that it was wrong that they could change the terms mid-way through a loan term, but they refused to budge so we were only paid for 12 months insurance.

If this was a single premium policy then no they could not have changed the terms (and if they misled you about the payout length at outset that would be further grounds for complaint).

However if premiums were paid monthly and there was nothing to indicate that you had been misled then a complaint should not be upheld.

sgr1234

I completed my form yesterday and posted it, but have just found another reason for having been mis-sold, i.e. the fact the policy only covered 5 years, but the loan term was 7!!

I still have the loanguard key information which I printed out from their website and it states "Q. How long will I be covered for? A. Payment will continue until you go back to work, or for a maximum of 12 months unemployment claims and 60 months for accident or sickness claims. However, if a doctor diagnoses you as suffering from a 'major disease' the insurers will pay the outstanding amount on your loan, less any arrears.

I am sure the PPI was added on to the loan at the start and we just made our monthly payments, which as you guys have stated is a no no as well.

sgr1234

Another thought I have, this loan was refinanced at least 3 times with PPI being added, would that mean they will look at the previous loans that were refinanced to see how much PPI was charged on those as well or do I need to find all that information for them?

sgr1234

OK received an offer today from the Bank. They have said its important to note that we have been successful in making a claim to the value of £6499.65 on the insurance policy. Now they arte offering us us a refund of £1,354.26.

At the back it has customer offer -£145.05 and then gross interest at statutory rate added to each overpayment from the date of payment date of £1,874.14 less tax £374.84 equals £1,499.31 and then at the bottom they have deducted the customer offer of £145.05 to make the offer £1,354.26.

So effectively they are offering us £145.05 as a refund on the policy and the rest is the interest!! Am I right? Is this the 8% interest that they should refund or is that just the interest that was made on the payments over 7 years? I'm confused!!!

I know they state we claimed on the policy - but it was in effect useless for the last 2 years of the loan - we couldn't claim on it. Also after claiming for one year of sickness they stopped payments.

Should I go back to them looking for me, or just cut my losses? Look forward to hearing from all of you in the know.

dunstonh

Should I go back to them looking for me, or just cut my losses?

The redress method is defined. It is not a competition to haggle.

I know they state we claimed on the policy - but it was in effect useless for the last 2 years of the loan

Bet you were pleased you had it for the £6499.65 it paid out at the time.


You appear to have got more paid out on the claim than you paid in premiums. However, the interest on each payment gives rise to a refund. You appear to have got lucky on this one.

sgr1234

Thanks Dunstonh - will go with it. Take the money and run. Not sure about the got paid out more than paid in premiums though. It was a £20000 loan over 7 years.

sgr1234

sgr1234 wrote: »

At the back it has customer offer -£145.05 and then gross interest at statutory rate added to each overpayment from the date of payment date of £1,874.14 less tax £374.84 equals £1,499.31 and then at the bottom they have deducted the customer offer of £145.05 to make the offer £1,354.26.QUOTE]

Does this total include the 8% interest they should add on top, or is the statutory interest what I actually paid on my payments? From reading the letter not sure if I still have 8% interest to be added!