Nationwide offer PPI we had on a loan in '99 **WON**

[Crapstone]

Nationwide have agreed to pay back single premium PPI we had on a loan in '99. Some £2600 plus only about 4 years interest of around £500. The reason they give is that the loan was defaulted on and the debt sold off. They say that to get any more interest then we have to go after the DCA. I'm sure it's wholly their (Nationwides) responsibility and not any of the several DCA companies it's since gone through. Am I right? Thanks.

[ims21]

The thing that you must always remember, and the overriding principle, is that you should be put back in the position you would have been in had the PPI not been applied in the first place.

 

Also, it is the seller of the PPI who is duty bound to resolve the issues.

 

So this was a single premium PPI which you would have paid off by instalments until the loan defaulted.

 

So Nationwide will be required to repay you each payment you made against the PPI plus 8% simple interest running from the date of that payment right up to the date of settlement.

 

When the loan was sold on there would still have been an element of as yet unpaid PPI in the balance figure and so they should repay you that amount as well although there will be no interest on that part of it.

 

Have you done a spreadsheet of claim to show what you should expect back?

 

If not, do you have the agreement and a record of the payments you have made and we can work out what the refund should be and challenge them if they are trying to pull the wool over your eyes.

[Crapstone]

Yes I've done the spreadsheet although I did it as though the loan had been repaid as scheduled. I have the agreement but no record of what was paid when. I just can't see how you'd get a DCA to repay any further interest as they would not be governed by the FOS or regulated for insurance. Can I not get Nationwide to pay the entire amount of interest as the debt would have accrued that regardless of if the PPI was paid or not.

[ims21]

When the account was defaulted/terminated then no further interest would have been added.

 

The DCA is not liable for anything unless they have been adding interest which, if they have, raises more questions.

 

We may still be able to take a stab at this though.

 

Although you have no record of the actual payment dates, do you have a date when this account was terminated?

 

Also can you post up the various figures from the agreement please.

[Crapstone]

They are saying it was defaulted in 2003 but I'm still waiting for them to send the figures through which should be tomorrow.

Starting on the 8/3/99 the premiums were £37. 38 for 72 months loan length.

[ims21]

Ok so your 8% interest spreadsheet should contain each payment of £37.38 you actually made. You should stop the entries at the date you stopped paying.

 

The "Claim To" date should be set to the date they made the settlement offer.

 

That will give you the figure for the amounts paid against the premium, the contractual interest which you paid and the 8% statutory interest.

 

You then need to work out what proportion of the balance sold to the DCA was PPI which you can do using percentages....see No.1 in my signature.

 

You add this figure to the amount given by the spreadsheet and this will be the amount you should expect back.

[Crapstone]

Ok Thanks ims21.. I should be able to do that when I get the full dates through. The figure they have offered is full repayment of the premiums that would have been due, including the contractual interest so I guess I don't have to do the percentage part of it?

[ims21]

It would be wise to do so just so that you can have peace of mind that their offer is correct.

 

As we know, never trust a bank!

[Crapstone]

Lol..very true..Just from what you've already said the figures they are giving seem out by a fair bit. Thanks for your help and I'll keep this updated

[Crapstone]

No figures sent as yet but I have looked at the offer letter which reads as:

 

' In order to put you back in the situation you would be in if you had not taken out the PPI policy, we would like to offer you a refund of the PPI premium including the interest that you paid on your premium. This is £2,691, as documented on the loan agreement you signed at the time.

 

In addition, interest has been calculated for a further 28 days from the date of the calculation at the statutory rate of 8% simple. This amounts to £565.01.'

 

 

Does anyone know where they are getting the 28 days from and how it figures in what they seem to have calculated?

[ims21]

28 Days is probably the length of time they are prepared to pay the 8% for while you consider/accept their offer.

 

Looks like they are offering £2691 + £565.

[Crapstone]

Hmm could be..Thanks again ims.

[Crapstone]

Offer accepted and a bit more than expected in the end..so that was a WIN!

[dx100uk]

well done!!!

 

dx