Advice on my "success"

yan101_2

Hi. Ill not go toofar into detail. But i need advice. I got a loan from natwest in 2005. I was told i needed ppi. So i took it. I recently complained to the fos and today natwest have sent me a cheque and a letter. It says please find enclosed £959 for 8% interest as part of your complaint. Now i defaulted on the loan years ago and im paying on a debt management plan with cccs. I still owed about 9 grand. Should i take this letter to mean the initial £2300 for ppi has been removed from what i owe and the cheque is just for the 8% interest? It dosent state that and witb it being xmas i cant ring anyone till next week. Id hate to think all i was getting back is less than half of the initial ppi that was added to my loan. Any help would be great. Also its bein handled by rbs. I guess they own natwest

dilus

yan101 wrote: »

Hi. Ill not go toofar into detail. But i need advice. I got a loan from natwest in 2005. I was told i needed ppi. So i took it. I recently complained to the fos and today natwest have sent me a cheque and a letter. It says please find enclosed £959 for 8% interest as part of your complaint. Now i defaulted on the loan years ago and im paying on a debt management plan with cccs. I still owed about 9 grand. Should i take this letter to mean the initial £2300 for ppi has been removed from what i owe and the cheque is just for the 8% interest? It dosent state that and witb it being xmas i cant ring anyone till next week. Id hate to think all i was getting back is less than half of the initial ppi that was added to my loan. Any help would be great. Also its bein handled by rbs. I guess they own natwest

Hi yan101,
It does sound as though they have used the redress to lessen the debt, which they are entitled to do and then have sent you the 8% interest (which by the way is taxable if it has been paid GROSS). You should follow this up with a phone call to get clarification on both counts. Well done

dunstonh

Id hate to think all i was getting back is less than half of the initial ppi that was added to my loan.

It is normal for any redress (apart from interest) to go towards any debts in arrears, defaults or amounts written off.

So, it does sound like you are getting just the interest and not the PPI premium. That is logical as you technically havent paid the PPI premium as you defaulted.

yan101_2

Thats great then. I wasnt expecting anything. I thought it would all go to reduce what i owe. Ill probably pay the 900 off against what i owe anyway. It all helps get me debt free . My only worry was it says in the letter thankyou for your acceptance but i didnt receive any letter stating amounts etc? Ill give them a call in the week

dilus

yan101 wrote: »

Thats great then. I wasnt expecting anything. I thought it would all go to reduce what i owe. Ill probably pay the 900 off against what i owe anyway. It all helps get me debt free . My only worry was it says in the letter thankyou for your acceptance but i didnt receive any letter stating amounts etc? Ill give them a call in the week

Don't forget the 8% may be taxable if it has been paid gross, you could owe the tax man £191.80 so don't spend all £958 yet

yan101_2

And when will i find out if i owe tax?

yan101_2

Just read somewhere. Atwest are deducting tax at source so ill ask when i ring. Bloody government would tax oxygen if they could

dilus

yan101 wrote: »

Just read somewhere. Atwest are deducting tax at source so ill ask when i ring. Bloody government would tax oxygen if they could

LOL yes they would, ring to make certain

yan101_2

confused a bit. I have received another 2 letters today, one sayingwe have now prcessed the 8% interest element of your redress. i am pleased to confirm that we have placed a credit of £67.37into your current account, as advised we have passed a further £107.37 to our collections management unit. and another sent the same day saying they have placed £472.57 into my current account and passed £800.90 to the collections dept.

now im a bit confued as to why they have put money into my natwest account when it was debt free when i left, the account is still open because of the money i owe on my loan, and the initial ppi cost was £2239.00. why couldnt they just put £2239 against what i currently owe them? does this make any sense to anyone?

yan101_2

Its ok. The money they put in my account was my old one. Got that back too. And they knocked about £4000 off what i owe so ill be debt free pretty soon. My 8% was net too. So no tax to pay