Barclays won't cancel ppi!...utter rip off!

mountainofdebt

I'm wondering if the increase in the apr rate is something to do with the length and amount of the new loan required to pay off the old loan.

Very often lower amounts and/or short terms seem to have an increased APR attached to them.

Princess_G

I don't know really how they work it out.
The length of time is the exact same as left - it's not over a longer or shorter period.
I give up already! lol
xx

Tootsie_Roll

There are generally two types of loan, one where the interest is charged monthly and one where all interest and charges are added on at the beginning of the loan - Please note I am generalising here, this is not entirely accurate.

Loan 1 - it is relatively easy to cancel ppi. A refund of the ppi premium is calculated and credited to the loan account resulting in lower future payments.

Loan 2 - not so easy. The whole loan has to be redeemed and re-written as you cannot simply pay off part of it and work out how much interest applied to that part as it is all lumped together.

I would say the OP has a loan 2 type so has to take a new loan at the appropriate rate offered on the day and as has been demonstrated it is often no cheaper to do this.

Astaroth

As tootsie says, some loans do not have the option of "removing" PPI as it is part of the loan - at the time of selling they would effectively had 2 products - one with PPI and one without rather than having one product with the optional add on of PPI.

If you do have this type of loan then it isnt possible to do anything other than cancel the loan and take out a new one. The APR may very well change when you do this because market conditions are different, as many posts on the credit card section of this forum will confirm, APR is going up massively at the moment for those who dont have ideal credit ratings but also your personal circumstances are probably not identical to what they were 2 years ago when you got the original loan too.

I dont know about HSBC specifically but many banks now operate a "manufacturing" model where the branches are little more than sales offices and there are centralised centres dedicated to the "technical" aspects such as lending decisions. To be honest, 50% of the problems customers have is due to employees trying to give good service (or being lazy and not wanting to phone the specialist teams) and answer questions which are beyond their current knowledge/ authorisation.

Princess_G

Got a letter this morning from barclays people who were looking in to ppi refund...............
100% won't move on this one.
I didn't think they would! boo
As explained in previous posts, bank would not cancel ppi without me taking out new loan and then they were going to charge 6% more apr so I'd be worse off.
I don't normally give up on things but this wouldn't be worth it for me as I'd be paying more each month.
I was intending paying the loan off earlier anyway but it was worth a try.
oh well.......................:rolleyes: