EGG Early Repayment: Daylight Robbery??

Nickinoo_2

Hi, I'm new to the site and I'm hoping someone can advise me... I am soooo frustrated.

Since the arrival of new baby and starting a business (I kno, the 2 really don't mix) me and Hubby are nervously juggling funds. We need to reduce our monthly outgoings longterm so thought we'd get rid of an EGG loan he took out in July 2004 for £9,500. So far we've paid £237 for 24 months (£5,688). When he called EGG for a settlement figure they said we owe £9,400!!!!

Whaaaat?? I nearly fell over I can tell you. So what, the total cost of the loan is £15,088?? They said 'we do things differently here'. You're dead right you do, it's called Daylight Robbery Love.

Being an online account there is no paperwork, just some munchkin going blah blah blah blah at the end of the phone. I am aware that loans are 'front- loaded' but it just sounds far far far to expensive to me.

What does anyone think?

Gopes

Did you take out Payment Protection Insurance? I know that this is a well known and very expensive scam lenders sell.

Figures do seem very high - are you sure they haven't made a mistake? Might be worth a 2nd call.

Hopefully, someone will be able to give you some more useful info.
G

Graham_Devon

Sounds about right to me to be honest and I'm guessing you have PPI on the loan. Therefore, your 2 years off paying off the loan, have actually been paying off the PPI and the interest accumulated on the PPI and the loan.

Thats why PPI is rubbish. They normally (not sure with egg) only pay for 12 months, 6 months after the event anyway, so you have paid 2 years worth of payments for 1 years cover.

I know it's no good to you now, but never take PPI again. All you can do now is ring them and get PPI taken off your loan. I did this 6 months into taking a loan out with them. Knocked £1300 off the outstanding amount instantly and I kept my payments the same to bring the pay off date closer.

The only way you can get all your PPI payments back is if you don't qualify for PPI anyway, and therefore, it was mis-sold to you. I.e. your self employed.

Nasty lesson to learn, but the best you can do at the moment is cancel the PPI.

Nickinoo_2

Well what happened was, the swines added it automatically and when we reaslised we cancelled it. It was only active a few months into the loan though so that's why I'm so surprised at the settlement figure.

Are we in a position to negotiate with them, eg. a better rate? Should they be providing us with paperwork if we request it?

We have told them we're experiencing difficulties - all they offer us a payment holiday!!!

Turtle

The Ombudsman would, I'm sure, be very interested to hear they added it automatically. This is not allowed. You have to complete the full complaints procedure with a bank before the Ombudsman will take case on though.

I would be surprised if what Graham-Devon said was true. The PPI covers the full term of the loan, but you can usually only claim for 12 months of unemployment in one go. Cover normally ends when the loan is repaid, 12 months paid out or you go back to work, or you turn 65. Its also not necdessarily true to say that its been mis-sold if your self-employed, some policies will pay for self-employed unemployment - you have to prove to inland revenue that your earnings would not support your living expenses.

The OFT are delving quite deeply into PPi and its associated practises and there is going to be a lot of change in how this operates and how it is sold. It is therefore a great time to be complaining about this - weh you do somake sure you mention you're aware of the Citizens Advice bureaus Super-Complaint. Kick up a big fuss and good luck with getting your money back.

Nickinoo_2

Thanks Gopes, Graham & Turtle for your comments.

We are trying to get some paperwork out of them now - I mean how can they charge us for the PPI in the settlement fee if cancelled it long ago? If they are I would certainly complain.

odowdchr

Did you keep a copy of your loan application form, hopefully with the payment protection unticked, or a screen print?
A deduction appeared on my EGG credit card statement to EGG's payment protection company.
I queried it and they told me it was a totally separate company so i'd have to contact them to cancel (!!), so instead I rang EGG's emergency number and reported it as a fraudulent transaction.

Nickinoo_2

LORDY LORD, IF ONLY HE DID!!!! I say HE, cos it was my better half who took out the loan - he doesn't keep any paperwork! We called yest to request a statement - they said 'Well we don't normally do that but I guess we can do it just this once!!'

Do you think 'EGG' are a front for a East End Loan Shark ?