Egg Loan passed to debt collectors for a different amount

Simjo

Hi,

I took out a Loan with Egg in 2002 for £5,000 plus £709 payment protection insurance.
I was unable to pay the loan back so it was passed to Debt Collectors, and I have been paying back £100 per month ever since.

The amount that was passed to the debt collectors was £7444, and I understand that this figure includes charges for being passed to a collection agency, however I have received a statement from Egg saying that the principle amount of the loan was £6,300 (not £5000) and the payment protection insurance was £2300 (not £709), making a total of £8,600!!


I have contacted Egg who have said they have no record of the initial amount of the loan (weird!!) and that I need to contact the debt collection agency.

When I called the debt collection agency, they said that I needed to speak to Egg because the amount they have is £7,444, and even they couldn't tell me how the figure increased from £5,709 to £7,444 let alone £8,600!!

I am going to send a copy of my loan agreement to Egg, but I just wondered whether anyone else has experienced this and if so, what happened?

Also, if the payment protection insurance is indeed £2,300 I would like to claim this back. I have called a company that claims PPI back on your behalf, but they want to charge me a 30% fee (25% fee plus VAT).

Does anyone know a company whose fee is less??

Thanks
Simone

jonjamie1970

You borrowed £5000, unless you got a 0% loan then you would need to pay interest on that loan, therefore £6300 sounds about right for the loan you didnt pay. Then add the PPI and theres your figure. Yes you may be able to claim back the PPI but you still need to address the money you owe.

Oh and dont forget interest and charges for defaulting.

Tixy

You can claim the PPI back yourself - if it was missold - have a read on the PPI reclaim section of the forum.

I would write to the DCA (send recorded) and ask for a statement of account with a full breakdown of all transactions to see how they get to the balance you now owe. Then you can check it against your loan agreement. I wouldn't send Egg your copy of the loan agreement.