Reclaiming PPI on my Natwest Loan

Halons

Hi all,

I was recently talking to a friend who has successfully reclaimed the PPI on a store card and he told me about how banks add PPI to their loans to get extra profits. This got me thinking about the loans I had and the loan I currently have.

I managed to find all the loan agreement forms I have (5 in total) going back to 2003. They are all from Natwest and each loan was used to pay off the previous loan as well as overdrafts and the single Natwest credit card I had.

Now I know I was really stupid getting myself into this situation. What started as a £5000 loan for a car quickly turned into a £20000 loan to pay for nothing but debt consolidation. I still to this day feel I was pressurised into taking out the loans by Natwest sales people constantly ringing me at work, telling me that I had to take out a loan, I'd never be able to pay off my credit card etc.

It appears that each and every loan I got from Natwest included PPI! Nearly a third of my £20000 is paying for my insurance! Plus the PPI is part of the loan so I'm even paying interest for the PPI!

I remember asking the Natwest salesperson in branch if there was any way I could pay less each month (I'm currently paying £200 off the loan and around £50 off the insurance which was too much for me back then, but better than having a £4000 credit card hanging over my head) but she said there was no way. I might have been young and naive when I took out the loans but I'm pretty darn sure I wouldn't agree to paying so much if I knew I didnt have to! I get paid up to a year if I'm sick at work, etc.

Now I have Natwest sales people ringing me at work and at home offering me a new loan because I could reduce my monthly outgoings by taking out a new 5 year loan for the settlement figure over another 5 years. (Told them I wasn't interested).

I have no other debts now and I've managed to get my loan down from £20000 to £7000 but having just found out about this PPI I'm really livid! I've rung up Natwest today and have cancelled the PPI so I'm a little calmer knowing I won't have to pay that anymore.

I do have a couple of questions however,

When I write to my branch of Natwest, asking them to give me the money they have extracted from me for four years using PPI (over the course of 5 loans), should I send 5 individual letters out for each account or should I include all 5 account numbers in one letter?

Has anyone else had problems with Natwest? They've been my bank for 25 years now and I always thought they where there to help me. Now I think they're there to steal every penny they can get from me.

Will asking for my money back effect my chances of getting loans, mortgages, credit cards etc in the future?

Thanks for reading all that! Any help is much appreciated. This site is so valuable. Oh, and sorry about the post length

regards,
Halons.

jonesMUFCforever

Every time you close a loan off a proportion of the PPI would have been refunded (normally to the loan to bring the outstanding amount down).
Therefore you have one PPI on the loan you have now to claim back if you so wish.

Halons

Thanks for the reply!

When you say a proportion, am I correct in thinking that the full amount of money that I payed to the PPI was not refunded?

For instance, my first loan was for £5000. The insurance on top of that came to 1280.00. The total charge of the credit was 6280.00. The amount payable, after interest was added, was 8242.20.

I had that loan for 10 months before I got another loan to consolidate my debts. So in total I payed:

10x £109.37 (Main Loan repayments)
10x £28.00 (Insurance Loan repayments)

When I took out my second loan, did the £280 that I paid over the 10 months for insurance get refunded or did a proportion of the £280 get refunded?

Sorry if I sound a little dumb, I'm still trying to get my head around it all.

jonesMUFCforever

Halons wrote: »

Thanks for the reply!

When you say a proportion, am I correct in thinking that the full amount of money that I payed to the PPI was not refunded?

You are correct. It is always weighted in favour of the bank but you should have a table of % of refunds perhaps on your copy of the CCA?