Halifax Loan and PPI

kbowler

My wife took out a halifax loan a few years back and was told that she had to PPI. a year latter she phoned up to cancel the PPI. She was told that she would have to have her loan settled and redone. this was done but the new loan was for more than the original loan.

Original loan was for £25,000 and the new one was for £25,000 and approx £2,000.

Why would this be

dunstonh

Why would this be

front loading of the interest (rather than daily accrual) and penalties on early repayment probably meaning she was penalised for early repayment.

opinions4u

kbowler wrote: »

My wife took out a halifax loan a few years back and was told that she had to PPI. a year latter she phoned up to cancel the PPI. She was told that she would have to have her loan settled and redone. this was done but the new loan was for more than the original loan.

Original loan was for £25,000 and the new one was for £25,000 and approx £2,000.

Why would this be

I'm guessing the original loan was for around £35,000, including £10,000 for the PPI.

She's paid a bit off the capital, but it won't be much in the first few months.

She's also used a year's worth of the PPI - she had cover when the debt was highest and the risk of paying out was longest (up to 5 years for illness).

So the formula will be something like:

Borrowed: £25,000 plus £10,000 (guess on my part) = £35,000.
Capital repaid (guess on my part): £2,000 = £33,000
Refund of insurance premium (guess on my part): £6,000 = £27,000

Hope that makes some sort of sense.