Early Settlement of a loan – can’t work out their calculations

Parrot

I took about a loan nearly 5 years ago for £15,000 – (20 year term)

I got a letter from the lender the other day (Paragon) informing me of the balance if I was to pay off early.
Total remaining loan amount payable including future interest due £34,685.42
Less Rebate of future interest charges £15,809.99
Less PPI rebate, if any £ 17.92
Total amount payable after deducting rebate £18,857.51

I would like to know how I owe £18,857.51. I spoke to an advisor who referred me to the Consumer Credit (Early settlement) Regulations 1983. It didn’t make sense to me.

There is an additional 25.71% on top of my loan, what is this and how is it calculated?

I tried canceling the PPI, it’s not cancelled as yet. The lady informed me that it’s nearly all paid off and that is why there is a £17.92 rebate, if cancelled. I thought I got this back if I do not claim and it’s only covers me for 5 years.

Also, I am challenging the PPI with the broker as I was mis-sold it, no good news as yet. They are ignoring letters and have not sent information as per the SAR form I sent (with cheque) and the 40 days has passed.

Any help would be appreciated.

di3004

Parrot wrote: »

I took about a loan nearly 5 years ago for £15,000 – (20 year term)

I got a letter from the lender the other day (Paragon) informing me of the balance if I was to pay off early.
Total remaining loan amount payable including future interest due £34,685.42
Less Rebate of future interest charges £15,809.99
Less PPI rebate, if any £ 17.92
Total amount payable after deducting rebate £18,857.51

I would like to know how I owe £18,857.51. I spoke to an advisor who referred me to the Consumer Credit (Early settlement) Regulations 1983. It didn’t make sense to me.

There is an additional 25.71% on top of my loan, what is this and how is it calculated?

I tried canceling the PPI, it’s not cancelled as yet. The lady informed me that it’s nearly all paid off and that is why there is a £17.92 rebate, if cancelled. I thought I got this back if I do not claim and it’s only covers me for 5 years.

Also, I am challenging the PPI with the broker as I was mis-sold it, no good news as yet. They are ignoring letters and have not sent information as per the SAR form I sent (with cheque) and the 40 days has passed.

Any help would be appreciated.

Hi there Parrot

Do you think you could add this or future posts in the reclaiming-discussion forums above hun, so what you have done by clicking on the "loans" link and above there is reclaiming discussion forum, this may be worked out for you on that actual thread.;)

How long ago was it you complained to the broker ?
Who are the brokers for this loan ?

Have you any documents/paperwork without the need of a SAR perhaps, if so then I would get back to them and request for your cheque payment back or if you still require these SAR documents, tell them you will report them to the ICO who are the information comissions office, here is the website for this for your information as they should comply within 40 days:
http://www.ico.gov.uk/what_we_cover/data_protection.aspx

Did you send the request off by recorded post ?

We will see if the brokers were regulated by one of the organisations, maybe GISC if not the FSA in order if this complaint has to be forwarded to the Financial Ombudsman Service, or you have the option with the "small claims court".

You could always argue on the settlement figure if you believe this was unfair, if you check out the above forums as mentioned above you will see I have a complaint in about unfair rebate, the company were not regulated in July 2004 when I had taken the product out but they were as from Jan 2005, and we settled the loan in Nov 2005.

Maybe worth a shot.;)

Di.
x

Parrot

Di, sorry about that.

The broker is e-loan.co.uk. I don't think they are in business because all contact number are not valid as per their website or correspondence i have.

I complained my self 2 months ago.

The only doc's i have from them are thank you letters for using them and them advising they will forward everything onto the lender who will be in touch.

X

Paul_Herring

A £ 17.92 rebate for cancelling PPI on a £15k loan seems very, very low. I would expect it (if you're cancelling on a missold basis) to be (say at 5%) £750. More if the percentage was greater. And don't forget the interest charged on the PPI element.

CTmole

Paul_Herring wrote: »

A £ 17.92 rebate for cancelling PPI on a £15k loan seems very, very low. I would expect it (if you're cancelling on a missold basis) to be (say at 5%) £750. More if the percentage was greater. And don't forget the interest charged on the PPI element.

nope, the PPI is nearly always 5 for years. so say a 10k loans and 3k ppp, even if the loans is 20 yr loan, the PPP premium was almost 100% a 5 year policy. so if he's had the loan best part of 5 years already, he'd not entitled to much of a rebate, even if they did do proportional rebates (which paragon don't, but for ease of calculation) lets say the ppp premium was 3k and the term was 60 months. he is 59 months in which means he has used 59/60ths of his insurance so he would only be entitled to 1/60th of the 3k advance

CLAPTON

If indeed, the deal gives you a refund of the PPI after 5 years whyever are you trying to cancel and reclaim it?
Without seeing any figures, it surely makes sense to simply wait for the five years to be up and get it back... doubtless you will have paid interest but presumably the refund is in your agreement so should be hassle free.