Nationwide Optional Loancare

Steve555

Hi Folks,

I am here on behalf of my mother who isn't sure what to do with regards to PPI.

She had a loan with around £2200 left to pay and got a package from the Nationwide saying why not up it to a total of £10,000 to do home improvements etc - The APR on the loan was 6.4%.

They went ahead and Nationwide took the total loan up to £10,000.

On the form it says the following (all figures are rounded up):

Total Loan Amount £10,000
Insurance Premium £1500
Total Interest Quoted £1,900
Total Borrowed £13,400

On the form they signed (which I have a copy of) it does use the word optional several times. They also ticked a box saying "I wish to purchase optional credit insurance (loancare cover).

I know for a fact they had no clue what it was until they heard about PPI in the news.

Is the £3400 on top of the loan purely PPI costs PLUS PPI interest or is that PPI costs plus interest on the actual loan? Is the loan interest separate to this amount?

Can they claim they were mis-sold if nobody even bothered to contact them via phone or in person and they had to do it all by themselves? This was 100% done by post.

Thanks for taking the time to read and I appreciate any help we might receive.

If you want more details let me know.

Best,
Steve

magpiecottage

Single premium PPI added to the loan - Nationwide are likely to find a complaint difficult to defend.

PH68

I would claim.


Fill in the FOS Form found on this site.
All you need is the Loan Agreement Number and Loan Dates (even if the loan is still "live").

It looks like it might be 2 loans.
The initial one that had about £2200 left on it, and the revamped one for £10000.
If so you will have 2 agreement numbers.
Just fill in 2 of the FOS forms, one for each loan, and send them off in the same envelope.


Give the reason for your complaint...
The main one is that the PPI was included in the single monthly payment and interest added on to it.
Other comments might be that you were not asked of any pre-existing medical conditions, or they didn't inform you that you could go to any third party for loan insurance etc...

Steve555

magpiecottage wrote: »

Single premium PPI added to the loan - Nationwide are likely to find a complaint difficult to defend.

Hi Magpie,

What do you mean by "sinlge premium PPI"?

How should I address this within a letter to Nationwide?

Based on the figures I have provided, what amount of PPI should I request/expect to get back?

Thanks for any response!
Stephen

dilus

Steve555 wrote: »

Hi Magpie,

What do you mean by "sinlge premium PPI"?

How should I address this within a letter to Nationwide?

Based on the figures I have provided, what amount of PPI should I request/expect to get back?

Thanks for any response!
Stephen

Hi Steve,
single premium PPI means it was "front loaded" put onto the loan at the beginning and you have paid interest on it for the term of the loan. This is very difficult for the banks to defend as it is frowned upon by the FOS. If the bank turned you down and told you to go to the FOS it would almost certainly be upheld.
Tell them exactly that "this was front loaded single premium PPI and I have paid interest on it for the duration of the loan"

Steve555

Hi Dilus,

Thanks for the heads up!

I am still trying to understand if they owe us £1500 for the PPI or £1500 + £1900?

Is the £1900 for the interest on the PPI? If it is that's ridiculous and means we should be getting back around £3400?

Should we quote numbers in the letter or just refer to it as PPI insurance plus interest?

Thanks for any clarification,
Stephen

dilus

Steve555 wrote: »

Hi Dilus,

Thanks for the heads up!

I am still trying to understand if they owe us £1500 for the PPI or £1500 + £1900?

Is the £1900 for the interest on the PPI? If it is that's ridiculous and means we should be getting back around £3400?

Should we quote numbers in the letter or just refer to it as PPI insurance plus interest?

Thanks for any clarification,
Stephen

Hi Stephen,
The £1900 figure will be total interest I think. They will have to pay you back £1500 PPI + 8% standard interest for every month that you paid PPI. You could state that you have paid interest on this £1500 @ 6.4% as some banks pay this back but lots don't.
If you know how much you were paying per month for PPI only and how many months you paid it for I can do a calculation for you to give you a better idea, or even tell me your overall repayment per month and I can work out from that how much of it was PPI. You need to work out the monthly PPI figure to calculate the 8% as it drops every month as you pay off the loan.

Steve555

Hey,

I have taken pics of all of the payments made for this loan (for some reason on the top of each statement it says "unsecured personal loan).

The pics have no personal details other than payments made, let me know if you want me to pm them to you (4 pics in total).

Best,
Stephen

dilus

Steve555 wrote: »

Hey,

I have taken pics of all of the payments made for this loan (for some reason on the top of each statement it says "unsecured personal loan).

The pics have no personal details other than payments made, let me know if you want me to pm them to you (4 pics in total).

Best,
Stephen

You can PM me them if you like and I'll take a look tomorrow or just post the figures up
Total monthly repayment
Monthly PPI repayment
Loan term in months
Dates of loan
Is the loan finished and did it go to term or is it still running?

icmelerlovers

unsecured personal loan agreement ,
could you tell me what this all means and is this the same a ppi

loan amount £7000.00
intrest £1.144.16
total payable £8.144.16
monthly payment £169.67

next column optional credit insurance
loan amount £799.43
interest £130.81
total payable £930.24
monthly payment £19.38
third colunm
loan amount £7.799.43
interest £1.274.97
total payable £9.074.40
monthly payment £189.05


48 monthly payments apr 7.90%

very confused