Is interest added to PPI?

orourkes09

Hi apologies for asking probably a really silly question but is interest added to PPI on top of the premium?

Thanks!

marshallka

orourkes09 wrote: »

Hi apologies for asking probably a really silly question but is interest added to PPI on top of the premium?

Thanks!

HI, yes it is if its a single premium.

orourkes09

Do you know how much? I was sold PPI with my HP agreement but Welcome say it was only £1404 over 4 years, is that a realistic figure?

I have requested all documentation from welcome earlier for the sum of £1, can't wait for it to arrive!!

Thank you

marshallka

orourkes09 wrote: »

Do you know how much? I was sold PPI with my HP agreement but Welcome say it was only £1404 over 4 years, is that a realistic figure?

I have requested all documentation from welcome earlier for the sum of £1, can't wait for it to arrive!!

Thank you

Hi, they would all different amounts depending on your actual loan details. If you had a loan over 10 years and the PPI a single premium, it would mostly only cover the first 5 years but you would be charged interest over the whole term. You could not work it out really without lots of other figures from the agreement and settlement figures etc.

orourkes09

Hi

I received my original agreement yesterday and have the following figure:

Amount of credit for goods: £4860.00
Amount of credit for insurances: £1404.53
Total amount of credit: £6264.53 over 48 months @ £231.47

Now the other charges are:

Acceptance fee: £195
Finance charges for goods: £3639.72
Option fee: £100

Then they added a charge for credit for the goods and insurances (PPI) which was: £3934.72 and £1011.31 which amounted to £4946.03, below this said rate of interest per annum was 18% but also APR was 37%............which confuses me a bit, was I paying 18 or 37% or dare I say it.............BOTH????

Anyway in total I would have paid a grand total of £11,210.56! Which is madness for a £4800 vehicle.

When I phoned my branch to ask for a copy of the agreement I was told that I only paid £1404.53 PPI and was specificially told that NO WAY Interest was charged on this......they also had the cheek to say I sent my letter to the wrong address, that I should have sent it to them NOT head office..........I wonder why, so they could give me and any other poor sod the run around.

Anyway I rang HO and spoke to the compliance department and was very much told I was quite right in sending my letter to them as they investigate any complaints regarding mis selling PPI, my letter is now in their hands and I will be hearing from them in due course.

Would anyone know by looking at the above figures what I would be roughly entitled to getting back, tried all sorts of calculations last night but gave up as steam was coming out of my ears after an hour & half!!!

Thanks everyone who has responded to my post!