HELP natwest ppi

miss_missy

HI
i went to natwest over two weeks ago to cancel ppi and they said no problem so i expected to see my payments go down by £55 per month as the credit agreement clearly states that the payments i make are made up of
£230 main loan repayment
£55 loan insurance repayment

however when i recieved the letter they had only reduced it by £29 stating that you pay more loan repayment at the beginning of the loan as it is higher i have also spoken to them since the letter and they say although my credit agreement states that it is just an average and not actually the amount i pay per month

are they allowed to do this???
it seems wrong to me that they can lie about the amounts on a credit agreement form

mm

Astaroth

It is one of the ways PPI can be done which is to front load it onto the loan so in a similar way to interest, your early payments make little dent on the loan itself but mainly go towards the interest and PPI. As you continue to chip away at the loan a greater proportion of the money goes towards the actual loan itself.

The process of repayment should have been outlined in the T&Cs that you agreed to