Thread: PPI charges NATWEST

Hi all,

Just wanted a bit of advise if you done mind....

I have asked for a Breakdown re my loan with Natwest and they said they are unable to provide me with a copy of the loan agreement but they can give me a breakdown - which they did. This is where I am baffled/shocked/speahless at the findings. I'll give you a brief story...

I took out the loan in May 05 told by Natwest I could only have it if I took out PPI. I have now seen on this statement that this PPI policy cost me £5408!! I cancelled this policy in Dec 06 and got a rebate for £2623.74 plus interest of £677 taken off my loan.

I then see an item named "CHARGE FOR CREDIT" for £6224.68!!!!!! Am I right in thinking this is a charge for cancelling the PPI!?!?!? Surely not....?!?!??? If this is so, then I have been charged over £11,632 for PPI which is over 50% extra on top of the original loan amount.

Has anyone experienced this "CHARGE FOR CREDIT" or can shed some light on what it really is?

many thanks for reading and for any help you may have.

Karen

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Hi

Please accept that I am no expert, however I believe that this is a fixed term loan, therefore the charge for credit relates to the interest being charged over the term of the loan.

Andy

Thanks Andy for your reply. Do you know how I can work out what the interest SHOULD be? As when I use £6224.68 against the orignal loan amount that works out to be 29%. And if I work it out against the laon amount PLUS PPI then its 23%. Hmm... or should I divide this percetage by the number of years the loan is over to get the annual interest rate?

Is this how it works???

Thanks again for any advice

Hi
Have you your original agreement at hand, if so can you scan it, remove any personal info and up-load it, this will help one of the many experts who use the forum to give advice.

Andy

I dont unfortunately. I requested it from Natwest and I got a letter replying saying "..regret that I am unable to supply you with a copy of the form"

All I got was some screen prints, like a statement, which I hasten to add natwest NEVER send out on a monthly basis. I requested these and they say they dont offer it...what!???????? crazy. I have had loans with other companies and always get a monthly statement. Anyway I am going off track there.

Ok the letter I got detailed the costs I am incurring and the monthly payment, then it says the interest I am being charged is 4.14% APR which seems really low...I am sure it was 6.9% APR but I have no record of it.

But if i multiply 4.14% by 6 (thats how many years its over) I get 24.84% which i guess is the interets charged over the entire loan period?

But it doesnt tell me what the interest on the PPI is.

Am i right in assuming that I can ask for a refund of the following:

PPI amount £5408
refunded £2623.74 (when I cancelled the policy PLUS £677.77 interest)
total to claim = £2784.26 PLUS interest?

sorry for the waffle...

karen