Thread: Good old Natwest

Originally Posted by tiggernikk

Good morning all.
Ok so I have just decided that I will try to reclaim my PPI from Natwest,
My first step was to cancel the PPI, which I did at the begining of this week (Monday).
On my original loan agreement it states that I will be paying £176.84 for the loan and £49.83 for the PPI over 60 months.
One would assume that on cancelling my PPI that my repayments would shrink to £176.84, NOT SO.
Yesterday (Friday) I received a letter from Natwest:

Blah Blah Blah Blah blah blah....
Please note that, when you cancel the loan account insurance, your monthly repayment figure will not reduce by the amount of the monthly insurance payment that is quoted on your consumer credit act agreement form.

(:o beg your pardon excuse me?)

This is because the repayments for insurance are higher at the start of the loan, due to the high risk involved,and lower at the end of the loan. therefore the longer the loan has been operating and receiving the benefit of the protector insurance cover, the less the monthly repayment will reduce.

( Again....what?)

So...... this must mean that they work on some sort of percentage per amount of payments? does anyone have an idea how this is worked out?
and surley it also means iI have payed more of the insurance than I acctually think I have.
I have online banking and can view my repayments on there, thay used to be broken down into two seperate payments but they stopped that and now it just shows the full amount going out per month.
Im terrible with numbers and this kind of thing so please be patient with me!!
I would really appreciate some one to explain this to me in plain english
Thanks for your time,
Nikki:

Hello Nikki,

This is normal, with a front loaded single premium you pay it off at the start.

Personally I would write to them, for confirmation that the ppi is now cancelled and confirmation of the Breakdown of any refund of the ppi and interest they have refunded into the loan balance.(if any).

Once you know this, you can then start the process of reclaiming what they have actually had.

If there is no rebate you are looking at

£49.83 for the PPI over 60 months = £2,989.80 plus either 8% statutory interest from the date of the loan to the date they pay you out. (or at the rate of the interest on your loan if higher)

If there is a rebate, you deduct it

If you need more help just shout