Thread: Help with PPI

Hi

I took a loan out with Northern Rock in Arpil 2005 for £11k. They inculded PPI for a single premium onto it as I was told that I wouldn't get the loan without it. The PPI was £5,235.

In November I wrote to NR asking for the PPI back as I felt it was mis-sold. They have wrote back to me to say they agree it was mis-sold and they would refund back the premiums that I have paid which add up to £1,835 plus 8% interest wich is a further £327. The loan will be reduced to the amount outstanding as if I had not taken the PPI out.

Only snag is I have to sign a new agreement to take out a new unsecured loan with them. They will honour the original 5.7% APR.

Is there any way I can reclaim the funds without going through a new agreement?

My only worry with a new agreement is because I have been on a reduced payments with my other creditors they will see it as a new loan and Im worried about them upping my payments.

Also I was advised that the current CCA will be unenforceable now that they have admitted that the PPI was mis-sold!! Not sure what to do for the best

a new agreement is the norm in a situation like this just make sure the %rate is the same also i note they have not refunded the % on the payments tn the PPI u have already paid

is that not the 8% they have offered me? the £327?

Not at all the 8% is simple interest and it is the amount a court would award on top of your claim if it went that way.

But the problem is that banks and other financial organisations hide behind this hoping us the consumer will agree.

When you pay your loan each month part of that payment is for the PPI they front loaded onto the loan so not only have you had the PPI policy added to the loan but also you have to pay for that each month plus interest.

Now your Loan agreement should list the cost of the PPI seperately and detail what the PPI costs each month and how much the interest ison the PPI.

If it does not you should be requesting this information from the lender.

So in a nutshell you want back the cost of the PPI policy, The payments made each month for this policy inc interest at the contractual rate i.e. the rate they charged you and the 8% simple because of the fact they have denied you this money.

Hope this makes it clear for you

Regards

Pompeyfaith

Ah that makes sense.

Here is a copy of the credit agreement.

http://i67.photobucket.com/albums/h2...2797/CCA-1.jpg

now they have offered me in total what they say is the premiums I have paid which equals £1,830.37 plus £367.97 interest at 8%.

The new loan amount would be over 76 months and as the orginal loan was over 120 months it means I have had the loan for 44 months. I have been on a reduced payment of £139 with the loan since April 2008, Jan, Feb and March 08, I didn't make a payment and buried my head in the sand as my job at the time was starting to hit problems and they stopped all of our overtime and bonuses which made up a big part of my salary.

The contractual payments without PPI is £119.88 my argument is that this is lower than the £139 I have been paying on a reduced payment so therefor they should remove the adverse credit info on my credit file. They refuse too though.

The new loan amount they say will be £7,739.03 and total payable will be £9,110.88.

I'm unsure if any of this is correct as to how it should be. Would you have any ideas?