Natwest PPI reclaim

wend180

Hi

I'm new here and helping out my in laws with a loan which they took out on behalf of my Husband

The loan was taken out in 2005 for £25k and the PPI was in included in the loan. £6393.00
The overall cost was £44.5k including the interest.
Now the loan is still running as it was taken over 120 and my FIL said to me last night that he went in to the bank a couple of years ago and they said to him that the PPI wasn't the correct product for him and they changed it to something else!!!

Is this legal? as he didn't know what he was doing as he isn't very clued up on financial matters.He changed it as he doesn't want his wife or my husband to be left with the debt if anything happens to him.

The paperwork which I did see last night as they can't find the orginal papework has both thier names on it adn it said that the account was opened in 2005

Does this mean that the loan is in joint names?
Also can they change the PPI without restructing the loan?

Many Thanks

Wendy

DrSqueeze

Hi,

A couple of questions to start with.

What did they change the PPI to ?

Is the paperwork with both names on definitely for the loan ? It does sound as though it's in both names, as you start by saying "with a loan which they took out".

Are your in-laws still working or retired?

So the first thing to do is find out what the PPI was changed to, why, and who it covers.

wend180

Hi

Thank you for the reply.

The dd has life/pensions on the bank statement so I am thinking that they have given him a life insurance policy but its not clear.
I think a trip to the branch might be in order to find out what it actually is but I will have to go with him as he isn't very clued up about financial things

They have recieved two separate bank statements for the loan one to each of them. They haven't got the orginal agreement so I am requesting any paperwork relating to that account.

I used to work in a bank as a Personal Banker and the bank i worked for did actually restructure the loan if the ppi was taken off it so I can't understand why that hasn't been done.

They are both still working.

I will see tonight when I go round if they have any paperwork relating to the new ppi or life insurance etc.


Any thing else I am missing before I start the process?

DrSqueeze

I definitely think some fact finding is the right way to go, to establish what exactly they are paying for. If your in-laws don't know what cover they have, it needs clarifying.

It may turn out to be perfectly fine, of course, but if nothing else it will put their minds at ease.

wend180

I went last night and we have send off the request for the paperwork relating to that account but the plot does thicken.

I asked questions last night about the loan and both of them signed for it.
Now when my FIL went in to the branch and saw them , they called him for a review and made the appt
He was the only person to go in to the appt, he said that they told him the product that he had wasn't correct and that this other product was , which would pay off the loan in case of him dying.

Now I need a little guidance here.
From my own experience in the banking industry
We would in order to take PPI off a loan , we would have to restructure the loan and get all parties to sign the paperwork.

Is this the case if it is RBS/Natwest loan?

DrSqueeze

It would depend whether the PPI was "built in" as part of the loan, or set up and paid for separately. I'm not sure how NatWest did theirs (for example, if it was separate then the policy could be discontinued and premiums cease without affecting the loan repayments).

It also depends on whether they actually did remove the PPI, or whether in fact they just sold your father in law an additional life policy.

Hopefully when you see the paperwork it will become clearer. It would be very dubious if they made changes to a joint loan without the consent of both people.