Ge Money Secured Loan

jossie_2

hi, myself and hubby stupidly took out a secured loan from GE MONEY 4 1/2 years ago (will be 5 in august) the loan amount was 10k over 10 years and we have never missed a payment. we have been very fortunate enough to sell our home and moving in 3 weeks,our solicitor told us he was now going to get settlement figures for our mortgage and secured loan,out of curiosity i phoned GE MONEY myself to get a settlement figure and nearly had a heart attack when they said to pay off the loan on 31st march (exchange date) we owed £11,745!!!!! of course i asked how it could possibly be this amount after paying it for nearly half the term but i was quite rudely told that was the settlement figure end of!!!! :mad:

hubby is going to phone back when he gets home from work for an explanation but i was wondering if anyone else has had this happen to them and if there is anyway of bringing this amount down!!!!

thanks
jossie

Rafter

Sounds like you went for the payment protection insurance and it was a type of loan where interest was added up front.

As a result, even though you are half way through the loan you have only paid off the insurance and not even started to tackle the debt itself.

Any chance you were missold the insurance? In any case you should write and complain about the unfair calculation of the settlement figure and escalate it to the financial ombudsman if you aren't happy.

Dig out your paperwork and check it in detail to see whether they have misled you or missold the insurance.

R.

jossie_2

thanks rafter for replying,
we have got ppi on the loan but there is 3 different amounts so i dont know what is what to be honest!!!! i will try and put on here what the paperwork says,

cash price of ppi £2740.50
interest for ppi £8365.10!!!!
these 2 figures are on the loan agreement

cash price of ppi £2740.50
interest for ppi £1746.30
these 2 figures are on the ppi personal iiustration

i am totally lost, tried asking what exactly we have been charged but they keep fobbing me off so i'm still none the wiser. all they have told me is there is a £200 fee for discharge of security, £150 for their fees for paperwork and so forth and 2 months interest at £123.75.

Rafter

OK,

What was your regular monthly payment and what is the APR on your documentation?

Is there any information about arrangement fees etc up front.

I'll do my best to see whether the number stack up for you - but you may need to go get some advice from somewhere like citizens advice.

Does the loan agreement really say 'interest for PPI of £8365.10' If so, there seems to be a good case to start really looking at misselling and potentially getting all your PPI money back.

Maybe someone with more experience than me can advice you about the law when you took out the loan and insurance, but I believe if you were told the insurance was compulsory or if there are some exclusions that were not clearly pointed out and which apply to you then there is a potential misselling case. Were either of you self employed, had any existing medical conditions for example.

R.

Robert_Sterling_3

We need more information in order to do the sum.

What was your monthly payment?

What was the annual rate of interest? ( Not the APR ).