loan from Paragon finance

shug1953

i took out a secured loan with paragon for£50000 about 4 years age i pay approx £800 per month, after about 2 years i discovered that i had also taken out PPi for another £13000. i contacted paragon a few days ago to find out how much i still owed them, i am astonished that i still owe them £54320. have you any idea how this can be when interest rates are so low and is there anything i can do as i am having extreme difficulty keeping up the payments. i also am on a debt management plan with CCS but could not include this in it as it is secured on the property.

Rafter

shug,

You have a single premium PPI policy that was added to the loan up front and then interest charged on the PPI premium too - hence why you still owe more than you originally borrowed after 2 years.

You also pay more interest in the early years on a loan. Although the interest rate is probably variable, secured loan companies have not lowered their rates because of the level of bad debts and drop in house prices.

Your best plan is to get the PPI cancelled on the basis that it was missold. Were you told it was compulsory at any stage? Were the exclusions clearly explained to you? You certainly imply you weren't even aware that you had it.

Good luck

R.

di3004

shug1953 wrote: »

i took out a secured loan with paragon for£50000 about 4 years age i pay approx £800 per month, after about 2 years i discovered that i had also taken out PPi for another £13000. i contacted paragon a few days ago to find out how much i still owed them, i am astonished that i still owe them £54320. have you any idea how this can be when interest rates are so low and is there anything i can do as i am having extreme difficulty keeping up the payments. i also am on a debt management plan with CCS but could not include this in it as it is secured on the property.

Hi there

I agree with Rafter here.

For more on reclaiming the PPI, you write to them with your reasons, they have 8 weeks in full to respond, check this link here below for more info on reclaiming - with guidelines of reclaiming, you will also find a checklist of mis selling reasons, and template letters, you can use these if you want to or as a guide with obviously your reasons for being mis sold.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Also feel free to browse and post up on the PPI reclaiming thread here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=169

Good luck.;)

ladette_2

with regard to paragon we to took a loan out with ppi i then got diagnoised with cancer and had to claim on it now im being told that the payments are only made for a year having gone through all the paperwork no where does it say that we are only covered for a year in fact it says we are covered for the whole duration of the loan, i was wondering if anyone else is having a problem as paragon and the insurance company are not very helpful at all as you can magine im very worried about this and wonder f i stood anywhere on being missold after we got told we would be covered for the whole loan
a very worried lady