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cancelled ppi but confused about repayments

kezia
kezia Posts: 322 Forumite
Hi

Having read on MSE all about loan protection being cheaper if you get it from somewhere other than your lender I cancelled my PPI with Tesco with the intention of buying elsewhere. My OH and I had taken a £20,000 loan out in 2004 and had been paying the following per month since (over 84 months)

£298.25 loan repayment
£48.85 PPI

a total of £347.10 a month.

However I am told that our new payment will be £317 a month without the PPI. I am sure there is a really logical explaination but we are confused as to how the payments can be £19 a month more than the loan repayment. Can anyone set us straight because CS couldn't explain it for us :confused:

Thanks
Smoke free since 16th December 2012
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