Can anyone work this one out????

westie666

Sorry if this question has been asked before. Here is a copy of the letter I have just sent to A&L to try and answer :-

Facts

Original Loan = £10500

Loan Per month = £241.62 (Including PPI)

Loan Period = 60 months

The PPI on the above loan was cancelled after a month, and I was told I would need to take another to resolve the cancelation of the PPI.

Below details the new loan...

Current Loan = £10741

Loan Per Month = £241.62

Loan Period = 59 Months

So if I paid one months loan, I recall this would be (£14497.20 – £241.62 = £14255.58)

This would have left £10389.44 of the original loan.

PPI then cancelled. So the Current loan should stand at £10389.44, but was taken to £10741 making a difference of £352!

So current loan is (£241.62 * 59 = £14255.58)....Hold on, that was the balance before PPI was canceled.

So I cancel the PPI and the Loan amount goes up, the payment stays the same.

As you may understand I find this hard to understand.

As I do not have the paperwork infront of me (hence asking for a copy) I need to know how much the PPI was for, as this total should have been taken off the original loan total (ie £14255 - ~ £2000 =£12255 [figure £2000 taken from personal searching in internet to find average insurance premium for loan of this amount]). So Current Loan (by rough calulation should have been (£12225 / 60 months = £203.75)

If you wish to discuss this with me, please send a copy of my loan agreement (showing the breakdown of the loan, interest rate, interest cost and PPI.

Rafter

Sounds like they have simply upped your APR so that your payment stays the same - something they are entitled to do unfortunately but sneaky all teh same.

Worth a complaint letter though.

R.

Robert_Sterling_3

I can see why the loan might be larger.
There was an early redemption of the first loan and they may be allowed to charge you two months extra when redeeming a loan early.

However the monthly payment should have been reduced.

westie666

Thanks for your reply Robert, Rafter

I agree with both of you, but they bullied me into taking the PPI on ther first loan, do you think I could go for the PPI reclaim on the original loan?

Graham