Thread: Northern Rock unsecured loan PPI

I took out an unsecured personal loan in the amount of £10,000 with Northern Rock in June 2006 and since October 2008 have been on a reduced payment plan with them - monthly payments should be £204.00 and I am now paying £110.00 pcm. I have maintained these payments religiously but did receive a phone call from them last week stating that they could put a charge on my home if they so wished. They also informed me that the PPI I had on the loan does not cover me for anything as I have a mental health problem and so cannot claim. There was a payment of £2,480.60 Loan Protection on a statement that I received from them this month - the only statement I have ever seen regarding this loan. Currently my balance on this loan - according to them - stands at 8,820.99p which I don't understand either - seems like I've not paid anything off. I want to reclaim the PPI from them but do not want to "muddy the waters" and end up with them putting a charge on my home - it's recently been paid off and I need this PPI money to buy my husband an electric scooter as he cannot walk. Any advice on what to do would be appreciated.

Originally Posted by middenmess

Can you post up a copy of the agreement after removing personal details etc. so that we can see what is what?

Not sure if I understand the bit about statements and PPI--is it a refund to you or just a statement of account?

Who told you that the PPI would not pay out in the event of a claim--was this in a letter or over the phone?

I don't have a copy of the agreement - this loan was taken out online and I can't find my copy - should look some more.

It was just a statement of account that said at the bottom about the PPI payment at the outset of the loan.

I was told the information about the PPI not paying out over the phone when they rang to see if my circumstances had changed. I told them at the time that I didn't even know I had PPI on the loan until I received this statement of account.

Originally Posted by middenmess

''I told them at the time that I didn't even know I had PPI on the loan until I received this statement of account.''

Didn't you think that the interest charged on the loan was a tadge over the top then when you accepted the figures for the loan originally ?????

£10,000 + interest = £x

but

£10,000 + £2480.60 PPI + interest = a b***** sight more!!

How much did they originally send you in a cheque or whatever when you first received the loan--was it the full £10,000 or was it £7519.40?

You've only had ONE statement in 3 years--didn't you think that a mite unusual?

They sent me the £10,000 I applied for and this isn't the only loan I have never, ever received a statement for - always paid by direct debit and never received statements apart from this one which they said they were now required by law to send. I was desperate for the money at the time to pay off a crippling credit card debt that didn't seem to be going down.