PPI and the Rule of 78

luxorsandy

I'm currently in dispute with Natwest over my PPI. I recently cancelled payment protection on my loan at the extortionate rate of £75.08 per month, however, my monthly payments are only effectively being reduced by approximately £55. This, they say, is because of the conveniently complicated Rule of 78.

It appears that this Rule has been abolished on personal loans taken out from 1st June 2005, but still applies to PPI.

The way I see it is I'm still paying them £20 per month for a cancelled policy. Has anyone else come across this situation? :mad:

CLAPTON

when was the loan taken out.
is the information about PPI and rule 78 in writing?

luxorsandy

Hi, thanks for your response.

I took the loan out in May 2006. Unfortunately, like a lot of people I didn't scan the small print so I don't know if there is any information in the terms and conditions covering the Rule of 78. It was Consumer Direct's 'Generic Financial Advice' service that confirmed the Rule still applied to PPI. They advised me to make a more formal complaint to Natwest.

Are you experiencing similar issues?