Early repayment of TSB Loan costing me more?!

crispy_chris

Have you tried asking the bank how they arrived at their figure?

pauldonnelly16

crispy_chris wrote: »

Have you tried asking the bank how they arrived at their figure?

No, not yet. I phoned them for a settlement figure before having a look at my remaining loan details – so at first didn’t realise that the settlement figure is higher than my remaining balance.

I wanted to understand what should be happening and roughly what the figure should be before I phoned them back and queried their figure. Didn’t wanna phone them up going mental if it turns out the figure they’re giving me is correct and I’ve just been dumb and overlooked something!

pauldonnelly16

Right, have dug out my initial loan agreement and here's the details...

Cash Loan Amount - £5,000
PPI Loan - £1,568.15
Therefore total loan - £6,568.15

APR - 17.9%
Duration - 60 Months
Loan Start Date - 22/04/2008

Current outstanding balance - £3,420
Settlement Quote - £3,536.75

1 repayment holiday taken

And after looking, I haven't had any late/missed payments. I got confused with another account.

MFWannabe

pauldonnelly16 wrote: »

Right, have dug out my initial loan agreement and here's the details...

Cash Loan Amount - £5,000
PPI Loan - £1,568.15
Therefore total loan - £6,568.15

APR - 17.9%
Duration - 60 Months
Loan Start Date - 22/04/2008

Current outstanding balance - £3,420
Settlement Quote - £3,536.75

1 repayment holiday taken

And after looking, I haven't had any late/missed payments. I got confused with another account.

Hi
Your loan before interest was £6568,15 (including ppi)
You say you've made 26 payments = £3204.50
If you carried on paying the loan you would have 34 months remaining; total £4190.50. So therefore the settlement figure is lower. You would not have an outstanding amount of £3,420; you have not incuded the interest you would have paid on the original loan and ppi figures.

zppp

pauldonnelly16 wrote: »

Right, have dug out my initial loan agreement and here's the details...

Cash Loan Amount - £5,000
PPI Loan - £1,568.15
Therefore total loan - £6,568.15

APR - 17.9%
Duration - 60 Months
Loan Start Date - 22/04/2008

Current outstanding balance - £3,420
Settlement Quote - £3,536.75

1 repayment holiday taken

And after looking, I haven't had any late/missed payments. I got confused with another account.

Ok according to the loan calculator I found I would make it that your monthly repayments are around £167 per month including the PPI. Does this sound right on your statements etc?

pauldonnelly16

You know, looking at my original agreement has got me confused as something doesn't make sense. Here's the little table on the document in front of me....


KEY FINANCIAL INFORMATION

...........................Cash Loan......... Loan for PPI...........Total Loan

Loan Amount.......£5,000.............. £1,568.15 ............. £6,568.15

Monthly Payment..£123.25 ..............£38.66 ................... £161.91

No. of Payments ......60...................... 60............................ 60

Total Payable....... £7,395 ..............£2,319.60............... £9,714.60

APR....................... 17.9%................ 17.9%



Now according to that my monthly payments should be £161.91, but I have never paid that much. I have only ever paid £123.25 which is the monthly amount for the cash loan only. I have never once paid the £38.66 for PPI. So going off the payments I have been making, that must mean I am only paying for the cash & interest, and so paying off a total of £5,000 + £2,395 interest??

BUT, my online banking says that I do have PPI and that my original loan amount is £6,568.18 - which is the figure in the table above for the cash & PPI loans combined.

So i'm confused now as to why my online banking quotes my original loan as being £6,568.15, but yet i am only making payments for a loan of £5,000?!

I'm baffled now as to whether i actually do have PPI or not?! And how much total loan i am actually paying back here?!

Time to ring the TSB me thinks before my head explodes!!

zppp

pauldonnelly16 wrote: »

You know, looking at my original agreement has got me confused as something doesn't make sense. Here's the little table on the document in front of me....


KEY FINANCIAL INFORMATION

...........................Cash Loan......... Loan for PPI...........Total Loan

Loan Amount.......£5,000.............. £1,568.15 ............. £6,568.15

Monthly Payment..£123.25 ..............£38.66 ................... £161.91

No. of Payments ......60...................... 60............................ 60

Total Payable....... £7,395 ..............£2,319.60............... £9,714.60

APR....................... 17.9%................ 17.9%



Now according to that my monthly payments should be £161.91, but I have never paid that much. I have only ever paid £123.25 which is the monthly amount for the cash loan only. I have never once paid the £38.66 for PPI. So going off the payments I have been making, that must mean I am only paying for the cash & interest, and so paying off a total of £5,000 + £2,395 interest??

BUT, my online banking says that I do have PPI and that my original loan amount is £6,568.18 - which is the figure in the table above for the cash & PPI loans combined.

So i'm confused now as to why my online banking quotes my original loan as being £6,568.15, but yet i am only making payments for a loan of £5,000?!

I'm baffled now as to whether i actually do have PPI or not?! And how much total loan i am actually paying back here?!

Time to ring the TSB me thinks before my head explodes!!

Sounds like you may have cancelled the insurance in the cooling off period?

pauldonnelly16

zppp wrote: »

Sounds like you may have cancelled the insurance in the cooling off period?

Think i might have done ya know - but cos my internet banking still says i have it, i've just assumed that i do.

But, the bank still seem to have my total as though i do have PPI - so does that mean that the settlement quote i was given is based on the wrong total and should actually be lower than it is? Or am i just confusing myself even more by being thick??

zppp

Right. Let's take it based on the fact you cancelled the PPI for a moment.
Right, the calculator comes up with the following figures;

Pmt# Balance Interest Principal Payment
1 5,000.00 69.58 53.87 123.46
2 4,946.13 68.83 54.62 123.46
3 4,891.50 68.06 55.38 123.46
4 4,836.12 67.30 56.16 123.46
5 4,779.96 66.52 56.94 123.46
6 4,723.03 65.73 57.73 123.46
7 4,665.30 64.93 58.53 123.46
8 4,606.76 64.11 59.35 123.46
9 4,547.42 63.28 60.17 123.46
10 4,487.24 62.45 61.01 123.46
11 4,426.22 61.60 61.86 123.46
12 4,364.37 60.74 62.72 123.46
13 4,301.64 59.86 63.59 123.46
14 4,238.06 58.98 64.48 123.46
15 4,173.58 58.08 65.38 123.46
16 4,108.21 57.17 66.29 123.46
17 4,041.92 56.25 67.20 123.46
18 3,974.71 55.31 68.14 123.46
19 3,906.57 54.37 69.09 123.46
20 3,837.48 53.40 70.05 123.46
21 3,767.43 52.43 71.03 123.46
22 3,696.40 51.44 72.02 123.46
23 3,624.38 50.44 73.02 123.46
24 3,551.37 49.42 74.03 123.46
25 3,477.33 48.39 75.06 123.46
26 3,402.27 47.35 76.11 123.46
27 3,326.16 46.29 77.17 123.46
28 3,248.99 45.22 78.23 123.46
29 3,170.74 44.13 79.33 123.46
30 3,091.41 43.02 80.44 123.46
31 3,010.98 41.90 81.55 123.46
32 2,929.42 40.77 82.69 123.46
33 2,846.73 39.61 83.84 123.46
34 2,762.89 38.45 85.01 123.46
35 2,677.88 37.27 86.19 123.46
36 2,591.69 36.07 87.39 123.46
37 2,504.30 34.85 88.61 123.46
38 2,415.69 33.61 89.84 123.46
39 2,325.86 32.36 91.09 123.46
40 2,234.77 31.10 92.36 123.46
41 2,142.41 29.82 93.64 123.46
42 2,048.77 28.51 94.95 123.46
43 1,953.82 27.19 96.27 123.46
44 1,857.56 25.85 97.61 123.46
45 1,759.95 24.49 98.97 123.46
46 1,660.98 23.12 100.34 123.46
47 1,560.64 21.72 101.74 123.46
48 1,458.90 20.30 103.15 123.46
49 1,355.75 18.87 104.59 123.46
50 1,251.16 17.41 106.05 123.46
51 1,145.10 15.94 107.52 123.46
52 1,037.58 14.44 109.02 123.46
53 928.57 12.92 110.54 123.46
54 818.04 11.38 112.07 123.46
55 705.96 9.82 113.63 123.46
56 592.33 8.24 115.21 123.46
57 477.12 6.64 116.82 123.46
58 360.30 5.01 118.44 123.46
59 241.86 3.37 120.09 123.46
60 121.76 1.69 121.76 123.46

Therefore it looks like their figure is correct, as the settlement will have an interest penalty. Looks about OK to me tbh.

MFWannabe

pauldonnelly16 wrote: »

You know, looking at my original agreement has got me confused as something doesn't make sense. Here's the little table on the document in front of me....


KEY FINANCIAL INFORMATION

...........................Cash Loan......... Loan for PPI...........Total Loan

Loan Amount.......£5,000.............. £1,568.15 ............. £6,568.15

Monthly Payment..£123.25 ..............£38.66 ................... £161.91

No. of Payments ......60...................... 60............................ 60

Total Payable....... £7,395 ..............£2,319.60............... £9,714.60

APR....................... 17.9%................ 17.9%



Now according to that my monthly payments should be £161.91, but I have never paid that much. I have only ever paid £123.25 which is the monthly amount for the cash loan only. I have never once paid the £38.66 for PPI. So going off the payments I have been making, that must mean I am only paying for the cash & interest, and so paying off a total of £5,000 + £2,395 interest??

BUT, my online banking says that I do have PPI and that my original loan amount is £6,568.18 - which is the figure in the table above for the cash & PPI loans combined.

So i'm confused now as to why my online banking quotes my original loan as being £6,568.15, but yet i am only making payments for a loan of £5,000?!

I'm baffled now as to whether i actually do have PPI or not?! And how much total loan i am actually paying back here?!

Time to ring the TSB me thinks before my head explodes!!

You say you've made 26 payments = £3204.50
If you carried on paying the loan you would have 34 months remaining; total £4190.50. Total amount paid: £7,395.00. Which is exactly the total amount for the loan stated above.
So therefore the settlement figure is lower.
If you've not paid ppi then you must have cancelled it.
If i was you i would pay off the settlement figure and stop confusing yourself.