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What would be the cost of PPI had it have covered the WHOLE loan period?

marshallka
marshallka Posts: 14,585 Forumite
edited 20 July 2009 at 11:55AM in Reclaim PPI & other insurance
As we have found out on here most single premium PPI policies only cover the first 5 years of any loan and they incur interest for the full term of the loan.

I have just worked out how much my PPI would have cost if I has covered the full 160 months of my loan. It would have been £24,000 for a £17,000 loan.

Ridiculous.

Comments

  • di3004
    di3004 Posts: 42,579 Forumite
    marshallka wrote: »
    As we have found out on here most single premium PPI policies only cover the first 5 years of any loan and they incur interest for the full term of the loan.

    I have just worked out how much my PPI would have cost if I has covered the full 160 months of my loan. It would have been £24,000 for a £17,000 loan.

    Ridicuous.

    Bl**dy he** that is rather a lot Marshallka........:eek: it is Ridiculous that !
    The one and only "Dizzy Di" :D
  • marshallka
    marshallka Posts: 14,585 Forumite
    di3004 wrote: »
    Bl**dy he** that is rather a lot Marshallka........:eek: it is Ridiculous that !
    "Everyones" is ridiculous Di. Its not just mine its every single premium 5 year policy that is like this. I just wanted to vent as I have read about a couple of the banks asking for not banning the sale of PPI at the time of a loan. How can they try and defend this and state that they are FAIR...????
  • LilacPixie
    LilacPixie Posts: 8,052 Forumite
    Thats loads. i have dug out my welcome finance loan document. I borrows £700 over 18 months and the PPI (compulsary) was £950 I settled the loan after 9 payments of £86.12 and the settlement fig was apparently £1009.26. How can that be fair or justified??
    MF aim 10th December 2020 :j:eek:
    MFW 2012 no86 OP 0/2000 :D
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