PPI refund payment query

tm22uk

Hello everybody,

Hope somebody can help with this, simple question probably.
After being contacted by Natwest regarding a possible PPI claim, I filled out the form, sent it back and today received a refund offer, which I'm willing to accept.

The only thing unclear is, with my current loan still running - but up-to date with monthly payments - where will this refund paid to?
In the letter all they say is this will be paid into your account.
Which one? My bank account? The loan account to be deducted from the current loan?
They also say it takes into account any arrears on the account.
Again, which one? They can't possibly mean the running loan?
The only outstanding balance I have is on my Natwest credit card and I would be OK with them paying this off with part of the refund.
But what about the general refund, where will it go to?

Also, at the end of the letter they write:

If your loan is still open we will arrange to restructure your loan account as if you had not taken out PPI. This means that we will apply a refund to your loan account for the amount of PPI you have been charged but not yet paid.
Your monthly payment amount will be amended accordingly.
Please note that this calculation will be updated prior to arranging your refund to take any further payments you make into account.

What does this mean now in accordance with the above refund payment? Or is this not related to the refund?

I must admit, I'm lost and before I sign anything, I'd like to know what will actually happen.

Can anyone help?

Many thanks in advance!

-taff

Ask them
If you aren't in arrears with your payments at all, they will probably give you a cheque. Ifyou are or have been, they'll take it off the loan.

sarah2503

Hi
I have had a PPI refund from Natwest i still have a credit card with money on but is up to date. The refund went into my current account. Hope this helps.
Sarah.

welshgasman

You will get the PPI you have paid and the 8% interest for those premiums, likely to your bank account or if you are not banking with them anymore, then by cheque.

It sounds like you have a loan with single premium of PPI.

The remainder of that PPI loaded at the start of the loan will be taken off the loan, and the loan restructured so that your monthly payments will reduce. The interest charged on the paid PPI premiums will also be taken off the loan.

HTH

tm22uk

-taff wrote: »

Ask them
If you aren't in arrears with your payments at all, they will probably give you a cheque. Ifyou are or have been, they'll take it off the loan.

Thanks, I thought that they mean in case of any loan arrears, but they only say it will be paid by cheque if I'm not a RBS customer.
If I am, it will be paid into my account, but they don't say which one.

Come to think of it, sounds more like they mean my current account. Maybe I'll give them a ring tomorrow to get that cleared up.

Thanks anyway.

tm22uk

Thanks Sarah2503, looks like it will go into the current account then.

And thanks welshgasman for the quick explanation.