reduced loan payment

wenden

Having been succesful in reclaiming PPI payments, done through a reclaim company, I find that the company that I took the loan out with will not reduce my payments. The loan is with Moneyway, formerly Citibank Financial. The loan was taken out in Oct 2006 and the monthly payments were £405.35 which included PPI. The loan is due to finish in Oct this year, 2011, so when my PPI was refunded in January, I expected my monthly payments to be reduced for the next 10 months. I have spoken to Moneyway today and asked why I have heard nothing from them about a reduction and they say that because I have had the full refund my payments will not reduce. I would like to add that I also had a full refund from Northern Rock late last year and they immediately set up a new loan for the rest of the loan term at a reduced rate. I hope that this is the right place to post this query, and that someone can advise.
many thanks

di3004

Hi there

I assumed repayments would still drop - or its like your paying for the PPI all over again.
Sorry If I got this wrong but hopefully someone will be along to give the right advice on this one for you soon, good luck.;)

the_knitting_drummer

wenden wrote: »

Having been succesful in reclaiming PPI payments, done through a reclaim company, I find that the company that I took the loan out with will not reduce my payments. The loan is with Moneyway, formerly Citibank Financial. The loan was taken out in Oct 2006 and the monthly payments were £405.35 which included PPI. The loan is due to finish in Oct this year, 2011, so when my PPI was refunded in January, I expected my monthly payments to be reduced for the next 10 months. I have spoken to Moneyway today and asked why I have heard nothing from them about a reduction and they say that because I have had the full refund my payments will not reduce. I would like to add that I also had a full refund from Northern Rock late last year and they immediately set up a new loan for the rest of the loan term at a reduced rate. I hope that this is the right place to post this query, and that someone can advise.
many thanks

It sounds like you've had a full refund of your single premium, rather than just the portion you have already paid. If you want the payments to drop you will have to use some of your refund to reduce the loan.

Northern Rock will have refunded you directly the portion of the refund you already paid, and used the rest to reduce the loan.

They are both full refunds, but in different shapes and sizes.

dunstonh

I'm with the response above.

If you have been paid the PPI in your hands then you are still borrowing the money. For the monthly payments to drop, the PPI would have to be paid into the loan to reduce the balance.

wenden

Thanks for your replies. I am waiting to hear back from Moneyway.