Advice needed

~evanesco~

Morning DFW's!!

My OH has a loan with LloydsTSB. She's got Loan Protection on there. I've rang to ask them to cancel it. I was told that I would have to refinance the loan. So I called them and they said I have to refinance the loan, and top it up to £1000. This is an addition of £92.

I'm not too sure what to do. They said they cannot just cancel the LP, nor can they tell me how much extra it is on top of my payments. So I can't really make a valid judgement. I guess I could take the extra they are going to top up and throw it at another debt.

Argh!! I'm so confused!!

Help? Anyone?!!

Evans.xox

immoral_angeluk

What??? Why the hell would you need to refinance the loan? Sounds like a load of BS to me.. do you have a copy of your terms and conditions?

sammyjo_3

course they can tell you how much extra it is.... they are fibbing!

on your partner's paperwork it should break it all down, loan amount, interest, PPI, interest.........

keep on with it you can win!

~evanesco~

Thanks,

I can't find the damn thing. I so crap with paperwork!! The Telephone Operator can't find anything on the system either.

Evans. xox

~evanesco~

Finally!!!

Got a breakdown....

Loan Outstanding: £918.42
Months remaining: 16
APR: 15.9%
Monthly Payments: £30.95; Loan Insurance: £4.40

This is what they've offered...

Loan: £1000
Months: 68
APR: 17.9%
Monthly Payments: £29.89

Or...

Months: 16
APR: 17.9%
Monthly Payments: £70.11

Am I right in thinking we should just stay as we are? They cost of the Insurance counter-balances the new APR? When we get our higher interest debts paid this is in the queue, so it'll be paid off anyway. (My OH is definate that she can make extra repayments on it).

Evans. xox

sammyjo_3

possibly better off staying as you are...

this really winds me up, they try and penalise you for not wanting their product! arrrggghhh!

i've just been through similar with my husbands loan with barclays except we proved they had missold it and got the whole lot refunded (just under £7000) but again we have had to redo the loan and they tried to get us to pay 19.9%! No way, there error, they can put it right..... glad to say we won! :j

sorry no that doesn't help you much but all i say is if you can make overpayments on it then do so, don't let them have your pennies!

Bloke_with_a_simple_life

~evanesco~ wrote:

Finally!!!

Got a breakdown....

Loan Outstanding: £918.42
Months remaining: 16
APR: 15.9%
Monthly Payments: £30.95; Loan Insurance: £4.40

This is what they've offered...

Loan: £1000
Months: 68
APR: 17.9%
Monthly Payments: £29.89

Or...

Months: 16
APR: 17.9%
Monthly Payments: £70.11

Am I right in thinking we should just stay as we are? They cost of the Insurance counter-balances the new APR? When we get our higher interest debts paid this is in the queue, so it'll be paid off anyway. (My OH is definate that she can make extra repayments on it).

Evans. xox

HEllo Evans,

Quick review - I don't think the figures Lloyds have provided stack up in the first example.

If you have 16 months left on your original loan and the balance is £918.42, then I would expect monthly repayments of around £57.41 (assuming fixed rate, fixed term, fixed repayments and the balance includes all interest due). If the 918.42 is only capital and interest is charged separately, then the monthly repayment will be higher

If you are only paying £35.35 (interest + PPI) assuming fixed rate, fixed term etc.) then I don't understand how Lloyds figures this will cover the 918.42 outstanding if you pay this over 16 months, as it comes out over £565.50.

I may be viewing the figures and information incorrectly, but you may wish to check with Lloyds that their figures are right. If they are not right, it may give a different view on what the best option is.

Good luck.

~evanesco~

Thanks,

I didn't even look at that. I'm going to wring them and check it out.

Evans. xox

Donedoingdebt

If your credit file is ok why on earth are you paying 15.9% APR & then being told your new loan will cost 17.9% APR? I personally would shop around for a much cheaper loan or even a low % credit card as long as you cut it up as soon as your loan payment comes out of it.

~evanesco~

Donedoingdebt wrote:

If your credit file is ok why on earth are you paying 15.9% APR & then being told your new loan will cost 17.9% APR? I personally would shop around for a much cheaper loan or even a low % credit card as long as you cut it up as soon as your loan payment comes out of it.

It's my OH's loan, and she's out of work. I'm gonna check it out though, beacuse as Bloke says, the figures don't add up.

Evans. xox