Monthly payment have increased after PPI removed?

james1872

After winning my claim against HBOS they have sent me out a new credit agreement with no PPI. My monthly payments have went up by £14 a month?

I would have expected it to go down. Any ideas why this would be?

The length of the agreement hasn't changed.

melorablack

Do you know the start date of your old loan? and what is the term of the new one?

robbedofmymoney

james1872 wrote: »

After winning my claim against HBOS they have sent me out a new credit agreement with no PPI. My monthly payments have went up by £14 a month?

I would have expected it to go down. Any ideas why this would be?

The length of the agreement hasn't changed.

if you have won a claim against miss-selling of PPI then the loan re-payments for the remainder of the term are supposed to be reduced in line witht he FOS recommendations, and put the loan back into the position it would have been in had the ppi not been there in the first place, so if this is the case they have not done it correctly.

If they have just cancelled the PPI and not refunded you in any way then this is probably correct, this is why selling this type of front loaded PPI is completely un-fair.

it really depends on what their offer says, it may just be a goodwill gesture that does not fully re-imburse your ppi and associated interest

hope this information is of help to you.

mangle101

Check over the new agreement & ensure that the APR is still the same as the APR on the loan when you first took it out, they sometimes tend to increase the APR ( They should leave it the same or less but, sometimes they dont )