Nationwide Loan PPI interesting letter 3 years to claim

[pumpytums]

Hi everyone,

I have recently received a letter from Nationwide about a loan I took out in 2005 this loan had "Loancare" AKA PPI.

 

I had completely forgot about this loan and of course the attached PPI the interesting thing is that they state I have 3 years from the date of the letter to respond. If I don't then they state

 

"You've three years from the date of this letter in which to make your complaint to us and the Financial ombudsman service(FOS). After this time we can't guarantee that your complaint will be considered"

 

This is the first letter I have received from any lender regarding PPI that helpfully gives the account number. In fact I owe Nationwide a drink because I had a look at my CRF from 2009 and released I had a loan with MBNA that I had also forgot about thats another thread .

 

OK on to the chase

 

sadly I don't have the CCA but I don't think I need it.

 

Details as follows

 

Loan amount £4000

 

Period of time 84 payments

 

Monthly Repayment £70.50

 

APR 6.7%

 

So using CAGS superb spreadsheet this works out as follows :-

 

84 x 70.5 = 5922

 

without ppi this would have been

 

84 x 59.4 = 4989.6

 

 

So going back to spreadsheet the initial loan + ppi would have been about £4750

 

The ppi element is therefore ~15.7% and equates to £11.1 per month.

 

I paid the loan off early and Nationwide have admitted that the PPI would have attracted loan interest so I bet that they never applied the correct rebate to the loan.

 

As previously I'm going to send a rough spreadsheet with each £11.1 paid and statutory interest.

 

Reasons for Miss sell,

 

1. The PPI was very expensive

2. I was never made aware that PPI could have been purchased from third parties much cheaper.

3. My job would have paid sick pay for 6 months.

4. I was never told that a one off premium (£750) would be added to the loan and would attract 6.7% for 7 years.

5. Prior to sale I was never asked if the policy was suitable for my needs

6. I simply was not given enough information to make an informed decision about the policy and its suitability for myself and my needs.

7.On early settlement of the loan the full rebate of the PPI premium was not refunded.

 

Does this sound ok?

 

Thanks

 

PT

[citizenB]

Sounds very ok.

 

Banks were told by the FSA that they MUST write to all their customers if there were PPI on the accounts, whether the customer was intending to make a claim or not. This was about 18 months 2 years ago, so it is very interesting that you have only just received this.

[pumpytums]

Hi CB,

yes it's very interesting other than egg have had no other companies write to me at all. I have claimed most of it back to be honest though.

 

It's quite an interesting letter as they actually give examples as to why they have miss-sold it.

 

Thanks

 

PT