need advice please on a loan

Robert_Sterling_3

We need to know about the insurance.
It seems as if the whole of the eight years insurance was taken on day one. Then it might have been added to the loan on day one. But if you are not paying off the insurance as well as the loan then that would explain why your outstanding balance is "ballooning".
Please get the fact as soon as possible.

crazy_chic

thankyou for all your replys ill post more when the agreement comes in the post

Robert_Sterling_3

OK.............................................................

crazy_chic

its been 3 weeks since my o/h requested a copy of his agreement and it still hasnt arrived he rang them again on friday and told them that if he hadnt recieved it by this wednesday he will take matters further ( dont know how we gonna take it further ) lol but thats what he told them lol

crazy_chic

Finally got agreement this is what it says
Financial information
cash loan......................£10,000
insurance loan...............£4,661.20
total............................£14,661.20

duration......................86 months

total to pay for cash loan......... £13,705.44
total to pay for insurance loan....£6,387.36
total to pay............................£20,092.80

monthly payments ...................£239.20
we will divide monthly payments between cash loan and the insurance loan in the same proportion as they bear to the total loan
apr for cash loan 9.3%
apr for insurance loan 9.3%

Other financial info
the cash price of the insurance premium is £4,661.20
Insurance premium tax at the rate of 5% is included in the non life elements of your premium
we will use the insurance loan to pay the insurance premium to the provider of the payment protection insurance
Total charge for credit on cash loan............£3.705.44
which consists of
Intrest on cash loan ................................£3.705.44

total charge for credit on insurance loan
which consists of ....................................£1,726.16
intrest on insurance loan..........................£1,726.16

total charge for credit for the total loan
which consists of ....................................£5,431.60
intrest on total loan...................................£5431.60
annual intrest rate 9.35%
intrest is calculated based on the total amount you pay for the total loan at the annual intrest rate and applied at the start of the total loan.

i have tried to type out exactly all on the loan he took the loan out in september 2006 and they say he still owes £13,395.20
sorry it so long

dylansmum

That is truly awful - the amount for insurance - Good Grief! I hope someone here can help you as this is horrible. The insurance needs cancelling!

CLAPTON

the settlement figure should be about 10,500

I would suggest he writes for a formal settlement figure and then sees what it says ratherr than rely on a figure on the phone.