Probably daft question about PPI

mimbellina

I've read through all the PPI threads and articles, and I would appreciate clarification on the following, please, if anyone's able to help.

DH took out a loan with Natwest in Dec '04. He was quoted both a total cost of PPI 'insurance premium' over the term of the loan, which was added to the inital loan amount and a monthly figure that this would add to the repayments "84 monthly repayments of xxx, comprising xxx main loan, and xxx insurance loan". .

Am I right in thinking that, although a total amount was added to the loan, because they specified a monthly amount, we wouldn't be eligible to claim for mis-selling?

Also, we repaid the loan last summer, and refinanced to another lender. Are the 18 months worth of PPI premiums that we paid to NatWest dead money, or is there a mechanism to claim back what we paid?

So sorry for being dense - I'm 8 and a half months' pregnant, and the brain isn't running at full speed, to say the least :rolleyes:

Thank you so much for taking the time to read this xx

jonesMUFCforever

Mis-selling is where you cannot possibly claim on the policy because you don't qualify in first place. Did this happen with Nat West?

You cannot reclaim what you paid Nat West now unless there is a case of mis-selling. You would have received a proportional refund on closure of the old Nat West loan.

mimbellina

Thank you for replying, ejones999. No, we weren't mis-sold it on the grounds of it being impossible to claim - DH was starting a new job the following month, which was a permanent job.

I think I've become confused by the 'single premium' grounds for claiming. I had a look through the loan paperwork and saw they'd quoted an amount for the loan insurance over the term of the loan, but as they quoted a monthly amount also, I guess that means they were acting correctly?

We were not refunded anything that we'd already paid to Natwest - we just had a settlement figure from them, which is was far as I can tell the total loan amount originally taken out, plus the PPI premium, but less 18 repayments of loan and PPI.

Does this sound right to you?

I'm so sorry for being dense

jonesMUFCforever

No. I think your redemption figure would have included a reduction for a part refund of the unused PPI premium.

Natwestmember might be along later - I think he will give you a more definite answer. NatWest is not my bank.