How did Egg calculate these repayments?

wj209980

Yesterday I sent a letter to Egg informing them that I believe I was mis-sold PPI on my loan I took out in September 2004 (they basically just quoted my a repayment figure and didn't make it clear that this was inclusive of PPI - no other options etc were discussed..)

Anyway, I have just been looking at the paperwork I got with the loan.

It states:

APR: 7.9%

Principal Loan: £6200
Loan Payment Protection: £1429.16
Total Amount: £7629.16

Monthly Instalments: 72
72 Payments of: £132.52


If I calculate £132.52 x 72 this gives £9541.44. How do they get to this figure? (I know there is the interest to add on but I can't get it to this figure!)

Anyway, the initial £6200 loan will cost me £9541.44, which is £3341.44 pure profit to Egg (which equates to around 50% of my original loan figure which is obscene!)

ILW

Seems to be an interest rate of around 7.9%.
Cannot see what you are complaining about.

CLAPTON

basically you have borrowed 6200 + 1429 = 7629 over 72 month at 7.9% and that works out about 9600 (approx)

try this calculator
http://www.whatsthecost.com/loan.aspx

wj209980

ILW wrote: »

Seems to be an interest rate of around 7.9%.
Cannot see what you are complaining about.

ILW - I wasn't complaining about anything, I just couldn't see how they had worked it out, but now I can see why

wj209980

CLAPTON wrote: »

basically you have borrowed 6200 + 1429 = 7629 over 72 month at 7.9% and that works out about 9600 (approx)

try this calculator
http://www.whatsthecost.com/loan.aspx[/quote]

Many thanks - great help :beer:

ILW

wj209980 wrote: »

ILW - I wasn't complaining about anything, I just couldn't see how they had worked it out, but now I can see why

I think the phrase "this is obscene" in your original post could be construed as complaining.
The deal does not seem too bad.

marshallka

wj209980 wrote: »

Yesterday I sent a letter to Egg informing them that I believe I was mis-sold PPI on my loan I took out in September 2004 (they basically just quoted my a repayment figure and didn't make it clear that this was inclusive of PPI - no other options etc were discussed..)

Anyway, I have just been looking at the paperwork I got with the loan.

It states:

APR: 7.9%

Principal Loan: £6200
Loan Payment Protection: £1429.16
Total Amount: £7629.16

Monthly Instalments: 72
72 Payments of: £132.52


If I calculate £132.52 x 72 this gives £9541.44. How do they get to this figure? (I know there is the interest to add on but I can't get it to this figure!)

Anyway, the initial £6200 loan will cost me £9541.44, which is £3341.44 pure profit to Egg (which equates to around 50% of my original loan figure which is obscene!)

If you are wondering what the PPI cost you all in with the interest it was £1799.14 (if the loan ran its full course). You have sent a letter to say this was missold and you have to give them 8 weeks for a full and final response.

Perhaps join the PPI reclaiming thread for further help and good luck.

wj209980

marshallka wrote: »

If you are wondering what the PPI cost you all in with the interest it was £1799.14 (if the loan ran its full course). You have sent a letter to say this was missold and you have to give them 8 weeks for a full and final response.

Perhaps join the PPI reclaiming thread for further help and good luck.

Many thanks for this information, it is very useful (and very kind og you to work it out for me!).