Loan Settlement Figure

Todd41

Hi,

First post so be gentle

I've recently had a settlement figure through for a loan that seems excessively high.

The loan was taken out through Ocean Finance :rolleyes: and I pay black horse finance every month.

The loan was taken out for £28,000 over 15 years at a rate of 8.4% APR, this gave payments of £309.36 of which £40.35 of payment protection.

The first loan payment was 10/06/2004. So I have paid 52 payments of £269.01 plus ppi.

I got a settlement figure through last week stating the following -

Current outstanding balance £26,371.66
Add Interest calculated to the estimated period of the load £12,946.70
Total - £39,318.36

Less any rebate to which you are entitled (this includes a rebate on your ppi insurance plan if appicable) - £12,407.86

The total amount required to settle your agreement is £26,910.50

So over the past 4 1/4 years, I have managed to clear under £1,100 even though I have paid £13,988.52 !!!!

Can someone explain how this is????

Thanks in advance.

di3004

Todd41 wrote: »

Hi,

First post so be gentle

I've recently had a settlement figure through for a loan that seems excessively high.

The loan was taken out through Ocean Finance :rolleyes: and I pay black horse finance every month.

The loan was taken out for £28,000 over 15 years at a rate of 8.4% APR, this gave payments of £309.36 of which £40.35 of payment protection.

The first loan payment was 10/06/2004. So I have paid 52 payments of £269.01 plus ppi.

I got a settlement figure through last week stating the following -

Current outstanding balance £26,371.66
Add Interest calculated to the estimated period of the load £12,946.70
Total - £39,318.36

Less any rebate to which you are entitled (this includes a rebate on your ppi insurance plan if appicable) - £12,407.86

The total amount required to settle your agreement is £26,910.50

So over the past 4 1/4 years, I have managed to clear under £1,100 even though I have paid £13,988.52 !!!!

Can someone explain how this is????

Thanks in advance.

Hi there

Unfortunately the ppi makes up for the amounts too plus interest on top of that.

Did you benefit for the ppi at all hun?

If you don't mind me asking but when they sold you the ppi was it explained to you of these extortinate costs and that it would be added in your loan.

You may have grounds to complain this was mis sold to you if you have not made a claim on this.

If you want check out the reclaiming/discussion thread above where this may show you some examples.

I was mis sold and won a claim last year and was repaid approx £13K back from this.

Did they tell you that you had to have this ppi cover to be accepted for a loan.

I would check this out hun, because if you were mis sold in anyway, they will have to repay back every penny of this and interest etc, this will bring down the figure on settlement. Or if your going to settle this you can still reclaim this ppi back.;)

Good luck!
Di.
x

Todd41

Hi,

Thanks for the quick reply

No haven't claimed on the ppi at all.
To be honest I can't remember if they said I had to take the ppi out at the time or need. I needed the money to pay some debts and signed my life away lol With all the adverts on tv for Ocean finance I thought they would be a reputable company...

I'm just amazed that I can pay all that money and have only cleared £1100 of the debt!!! I find it hard to believe it's legal, can't understand why so many banks are in a bad way when practices like this go on!!

Thanks again.

di3004

Todd41 wrote: »

Hi,

Thanks for the quick reply

No haven't claimed on the ppi at all.
To be honest I can't remember if they said I had to take the ppi out at the time or need. I needed the money to pay some debts and signed my life away lol With all the adverts on tv for Ocean finance I thought they would be a reputable company...

I'm just amazed that I can pay all that money and have only cleared £1100 of the debt!!! I find it hard to believe it's legal, can't understand why so many banks are in a bad way when practices like this go on!!

Thanks again.

No problem.:D .
Okay then hun, I would contact them and ask them for a copy of your agreement and a written breakdown, when you receive this add this on the ppi reclaim/discussion post where someone there, maybe Tiggrae will guide you here.

If you already have the information then that's cool, but please post up on that thread I mentioned and you will see others in the same situation and where they are trying to reclaim on the ppi.

If you have not got all the information then you may be required to request for a subject access request (SAR) where they must by law supply you with this information within 40 days of the SAR letter request, but first try to contact them and request this information where they may supply you this for free. The SAR there is a £10 charge for this.

Get back to us and we will take it from here, but in my opinion you have possibly been mis sold this as most did with this front loaded policy, so you will already have grounds for a complaint.;)

Di.
x

Todd41

Thanks again

Will dig out all the information I have tonight and drop them a letter.

I still can't believe I was stupid enough not to realise I was paying out so much money for so little capital repayment.

Have been reading through the other threads, so much information!! Can't believe banks are allowed to get away with this. !!!!!! Turpin has nothing on some of these banks!!

di3004

Todd41 wrote: »

Thanks again

Will dig out all the information I have tonight and drop them a letter.

I still can't believe I was stupid enough not to realise I was paying out so much money for so little capital repayment.

Have been reading through the other threads, so much information!! Can't believe banks are allowed to get away with this. !!!!!! Turpin has nothing on some of these banks!!

lol, your not wrong there hun "!!!!!! Turpin".....:rotfl: lol.


We have all been there hunni, but what goes round comes round, now your gonna get them back and will end up the one laughing here......:D .

Keep posting up hun, we will guide you, with pleasure.;)

Di.
x

oldbanker

Also have you checked if this loan is unenforceable as you could get it all back

helensmoney

I've just been going through the same issue with black horse. I'm 18 months into a 5 year £3000 loan, nd have apparently only paid off £100 in capital! I did not take out PPI. I am waiting for full statements to arrive from Black Horse but it has been suggested to me that BH often front-load the interest payments (ie you pay off the interest that would accrue over the whole term over a shorter period. Once the interest has been paid, you then pay the capital in the final years of the loan). I don't really understand how this works as yet, but am trying to find out.

Anyone heard of this before?

marshallka

oldbanker wrote: »

Also have you checked if this loan is unenforceable as you could get it all back

You are posting for personal gain here.

Galaxy863

helensmoney wrote: »

I've just been going through the same issue with black horse. I'm 18 months into a 5 year £3000 loan, nd have apparently only paid off £100 in capital! I did not take out PPI. I am waiting for full statements to arrive from Black Horse but it has been suggested to me that BH often front-load the interest payments (ie you pay off the interest that would accrue over the whole term over a shorter period. Once the interest has been paid, you then pay the capital in the final years of the loan). I don't really understand how this works as yet, but am trying to find out.

Anyone heard of this before?

This really confused me too when I recently took out finance with black horse on a car. The finance document states

" Interest charges for the duration of this agreement are calculated on and added to the amount of credit at the outset "

So I thought that the interest would be added on straight away, but when I rang for a settlement figure it wasn't the case so I took out another loan to pay it off ( at a much better APR! )


In response to the original poster ( and I don't know much about loans ) but if you've taken the loan out over 15 years, and have only managed to reduce your loan by £1,100 after 4 years, then how will the loan be paid off in time? Definitely sounds a bit dodgy to me!

Todd41

Galaxy863 wrote: »

In response to the original poster ( and I don't know much about loans ) but if you've taken the loan out over 15 years, and have only managed to reduce your loan by £1,100 after 4 years, then how will the loan be paid off in time? Definitely sounds a bit dodgy to me!

Thats exactly what I thought, I'm almost a 1/3 of the way through the loan.
I'm going to type it all up tonight and send them a letter asking for a breakdown.

Should they not tell you up front about the front-loading of the loan?

Should I also be contacting Ocean Finance as it was them that I was dealing with initially?

Thanks again for all the help, I still can't believe companies are legally allowed to do this. Over £13,000 paid for £1,100 capital repayment seems obscene and if not illegal at least immoral !! Ok rant over lol