confused about loan settlement.

wsaunders23

My son got a £3000 loan from yorkshire bank in feb 2009.he was to pay it back at £23.54 per week for 5 years. He asked for a settlement figure today and they said it was £3028. He has missed no payment so I could not understand why he owes more than he had borrowed, so i looked through his loan agreement and found that they had added £874 for ppi. This has confused me as i thought ppi was something you payed monthly and could cancel at any time. When I asked him about this £874 he said he thought this was the interest he would pay for borrowing the money. At the same time as giving him the loan they opened a signature account for him that cost £2.50 a week (he thought this was his ppi). When I have looked at this signature account it is like an insurance policy for family travel insurance, greenflag breakdown, mobile phone insurance and identity theft alert. I can not understand why they opened this account for him as he is a 25 year old single man with no children, he is on minimum wage and really just lives hand to mouth every week. If they had asked him the right questions they would of known this account was as use to him as a bucket with a hole in it as;
He it not a person who travels a lot (has been on holiday once in the past seven years) so the travel insurance was no use to him.
At the time they set this account up he did not own a car or a mobile phone so the greenflag breakdown and mobile insurance was no use to him.
I think he has been missold both ppi and this signature account.
He still wants to pay his loan off but we are not sure what to do, can someone please advise us where he stands.

jonesMUFCforever

Do you mean monthly repayments as opposed to weekly?
Most loans have monthly repayments.

As for the Signature account if he is an adult and was told what he signed up for then I don't see what is wrong but he can convert the account at any time but won't get any charges paid refunded.
This will not affect his loan in anyway.

As for the loan - the PPI does look as it has been loaded upfront - I think your son took out a loan just prior to the changes in the way they sell PPI.
In today's climate is his job safe? I would think very carefully before cancelling the cover - if he was made redundant or unable to work due to illness how would he make the repayments?

wsaunders23

No jones he doesn't pay monthly he pays weekly.

and as for this signature account isn't they a banking code of conduct that says anything sold has to be in the interset of the client

jonesMUFCforever

wsaunders23 wrote: »

No jones he doesn't pay monthly he pays weekly.

and as for this signature account isn't they a banking code of conduct that says anything sold has to be in the interset of the client

So why did he agree to it?
If he thinks it was misspelt then he should in first instance go back to branch and ask why they sold him that account.
If he is not happy with the outcome he can make a formal complaint.