Confused about an old Hsbc loan

pandaspot

I am confused with the last loan I had, mainly with the figures


Hi hope someone can explain what this means

On my paperwork I got this week it says on the loan statement that £35,053 drawdown. Yet on my current account shows £25,320.00 entering my account

They then deducted the PPI and repayment for a previous loan deducting from this figure of £25k

Where is the £35k from? The statement shows the £35k reducing when I pay off each month.

When I went to default and the debt was sold they sent £19k to the debt company.

Does anyone understand what the £35k drawdown is?

It worked out I was paying £365 a month over 8 years

Rafter

The £10,000 difference is probably the cost of any up front fees and the payment protection insurance premium added to the loan up front. There might also be some early repayment charges from the previous loan.

If you think you might have been missold the PPI and the loan was still active in the last 6 years you might be able to reclaim some money to help pay off the debt company.

To do so you will need to be able to demonstrate that you could never claim on the PPI because you had an existing medical condition or were self employed. Alternatively if at any stage in the loan process it was indicated that getting the loan was conditional or more likely to go through if you took out the PPI policy.

Good luck

R.

pandaspot

I have put a claim in for the ppi, as it was missold , as I didnt even know the person who sold me the loan had added it. I am also a government worker so do not qualify for ppi. She was also aware of that.

The ppi is shown on the statement leaving my account from the £25k.

You are probably right though, maybe I was charged an early repayment figure of the previous loan and probably a load of hidden charges are on it? How can I find out this? Suppose through doing a Sar?

Tixy

£365 x 8 x 12 is £35040 - so it is the total amount repayable including interest and charges. I expect its just interest.
Does the agreement show the total interest cost or total cost of credit figure anywhere? If not what APR was it - I make interest of £9733 would be an APR of around 9%

pandaspot

I haven't got the loan agreement or apr amounts unfortunately but yeah it's bound to be the interest isn't it

Didn't think of that. Bit dull