PPI with NRAM..

mikenovak

I took a loan out with NRAM (Northern Rock) in 2005, but unfortunately due to over committing on my finances I realized I was finding it difficult to repay in full each month. I set up an arrangement with CCCS (Consumer Credit Councilling Sevice) about 3 years ago and have been paying a reduced sum towards the loan balance since then. I have PPI insurance cover on my loan, but in my latest letter from NRAM to accept the latest payment amount there is a line in the letter which troubled me.. It says:- "Please note the reduction in your monthly payments will extend the term of your loan. If your account is covered by Payment Protection Insurance originally sold by NRAM, your account will only be covered for the length of time you originally chose to pay your loan". I am assuming that as I took the loan out over a 60 month period (5 years) from 2005 does this now mean I am no longer covered by PPI? And as such, would forumites suggest this is adequate grounds to start a claim against NRAM because nobody told me that if my loan was extended past the 60 months I wouldn't be covered!

Sorry the post was so long, but I would appreciate any help offered on this?

Mike

-taff

Put a complaint in anyway for single premium.
But yes, you aren't covered because a typical term is 5 years or less.

mikenovak

-taff wrote: »

Put a complaint in anyway for single premium.
But yes, you aren't covered because a typical term is 5 years or less.

Hi Taff

Thanks for the reply - appreciate it.

Sorry, bit new to this PPI claiming lark, but whats a 'single premium'?

Mike

-taff

They lend you the money to pay for the PPI then they charge you interest on it. Even if you cancel it immediately before the period is up, the interest will stay on the loan. Also depending on the legnth of the laon, it may not cover you for the whole term, as you have found out....

If you consolidate the loan with another one, you will get a part refund of the PPI but the interest will roll over onto the next loan.