over charged for a loan

Alan_spanners

hi pep's
I got a loan out just over three years ago and i have been paying £316 every month religiously until now, as ive recently just came into money problems from a job loss. Now that i am back in work, i have decided to work out all the areas on my loan. So i went down the bank last week and they informed me that i still owe them just over £8,700
But the loan was only for £10,000 in the first place, this seems a alful lot still being owed. The loan does have payment protection insurance shall i remove this. Any advice on this would be very grateful.

regards alan

BlueAngelCV

You need to ask them to provide you with a copy of the agreement straight away.
Was this loan from a high street bank? I cannot believe that they would be charging that much interest.
Also look into Martin's tips for reclaiming PPI.

jonesMUFCforever

If you had a job loss why did you not claim on the PPI?

~Brock~

Are you sure that £8700 isn't the gross balance, which would be reduced upon settlement?

How long was the loan over - this is important.

jonnyd281

Doing some quick and dirty maths it sounds like you have just over 2 years left to run on the loan. (8700/316)/12 = 2.29 - It sounds like they have added all the interest on when they set the loan up. Mrs D has a loan that has been set up that way.

BlueAngelCV

jonnyd281 wrote: »

Doing some quick and dirty maths it sounds like you have just over 2 years left to run on the loan. (8700/316)/12 = 2.29 - It sounds like they have added all the interest on when they set the loan up. Mrs D has a loan that has been set up that way.

So for a £10,000.00 loan the OP has to pay back £20,076.00? That doesn't sound right when they've been paying £316.00 per month.

jonnyd281

An awful lot of money yes but we don't know the what interest is or how much the ppi was.

Rossa_3

Could depend on how much of the monthly payment was for the PPI. Some loans stack up the interest up front with more capital only being paid at the back end of the term. Check your loan ageement. Also when you took out the loan was it to replace a previous one with the same company? That may have also loaded the current loan with additional charges.

theoretica

BlueAngelCV wrote: »

So for a £10,000.00 loan the OP has to pay back £20,076.00? That doesn't sound right when they've been paying £316.00 per month.

A five year loan of £10000 at 25% interest (high, but worse exist!) would have payments of £294 and then there is the PPI... Have you read this article?

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Alan_spanners

the loan was from lloyds tsb and over 5 years , has anyone on here claimed ppi back from lloyds and how would i go about it????