HSBC fixed-sum loan question...

richieuk_2

Hello. I posted this in the PPI claim-back forum, but am now unsure whether it had anything to do with PPI so i thought i'd have a go here aswel...

I took out a fixed-sum loan with HSBC back in 2007. These are the details (taken stright from original agreement paperwork) -

Amount of loan - £3500
Period of loan (in months) - 36
Total amount payable under this agreement - £4466.66

Repayment:-
Amount of 1st repayment - £124.21
Date of 1st repayment - 1 November 2007
35 monthly repayments of - £124.07

APR - 17.9%

Total charge of credit, comprising £966.66
Total interest £966.66
Arrangement fee £0.00

I have already paid this off without missing payments or anything like that, but with the whole mis-selling of PPI and such i thought i would take a look at my agreement again, and after some calculations i've been left a bit confused. That is, unless it was explained to me when i initially took out the loan and i have simply forgotten?

So the way i worked it out was like this -

3500 / 100 = 35 x 17.9(APR) = £626.50

£4466.66 minus £3500 = £966.66



£966.66 minus £626.50 = £340.16


Now, unless i'm been thick (quite probable) and my maths is rubbish (again, quite probable), i really don't understand where the extra £340.16 i have paid for, came from? There is nothing on my original agreement mentioning PPI or any sort of insurance, i don't even remember been asked for any service like that when i took the loan out.


So, basically i have no idea if i was paying PPI or not, if this even belongs in this PPI forum, wasn't sure where else to put it, or am i missing something simple and this has nothing to do with PPI at all and i have overlooked a charge or simply, my maths is that bad!


Thanks for your time

GlamGirlie

APR stands for ANNUAL percentage rate - the annual being the key word. So it's not just 17.9%, it's 17.9% each year.