Underpaid loan but no one knows (still)

mishnvk

Hi all

I have taken out a personal loan with lloyds tsb in jan 09

Amount: 9500
Term: 60 months
APR: 15.2
Annual interest rate: 14.23

It states total repayment is 13332 @ 222.20/month x 60

Initially I took out PPI but after 1 week have cancelled by writing a letter to the bank.

Subsequently the monthly repayment has reduced to 191.68, thinking that is normal because the PPI has been removed.

Just yesterday I had a shock when I realised that I only paid less then half of the amount and so far has been 46 months out of 60.

I guess there has been a major mistake on their behalf but now I am worried to bring it to their attention in case they want a lump sum to bring it up to date.

What rights have I got and what should I do next?

Thanks

somethingcorporate

It's likely to be the way the interest is accrued (daily). You would not expect to have paid half off after half of the term since the majority of the repayment goes on the interest to start with.

eliviajen

I found that there had been an error upon removing my ppi, and that my last payment on my loan was £225, instead of the £98 i was expecting... not the end of the world really but we are on a tight budget and it threw things off that month

but your payment should be circa £210 a month, so you are paying £20 a month short over 60 months so there may be a payment of £1200 to make at the end :eek: - id rather sort it out now rather than later x

my maths is probaly wrong mind - im not very good at working out APR and stuff

dresdendave

If you have made 46 payments of 191.68 then so far you have paid 8817.28.

Why do you think you have paid less than half the loan amount?

mishnvk

dresdendave wrote: »

If you have made 46 payments of 191.68 then so far you have paid 8817.28.

Why do you think you have paid less than half the loan amount?

I used an APR calculator and I got this:

Pmt# Balance Interest Principal Payment
1 9,500.00 112.65 109.53 222.18
2 9,390.46 111.36 110.83 222.18
3 9,279.64 110.04 112.14 222.18
4 9,167.50 108.71 113.47 222.18
5 9,054.03 107.37 114.82 222.18
6 8,939.20 106.00 116.18 222.18
7 8,823.03 104.63 117.56 222.18
8 8,705.48 103.23 118.95 222.18
9 8,586.53 101.82 120.36 222.18
10 8,466.17 100.39 121.79 222.18
11 8,344.37 98.95 123.23 222.18
12 8,221.15 97.49 124.69 222.18
13 8,096.45 96.01 126.17 222.18
14 7,970.28 94.51 127.67 222.18
15 7,842.61 93.00 129.18 222.18
16 7,713.43 91.47 130.71 222.18
17 7,582.72 89.92 132.26 222.18
18 7,450.45 88.35 133.83 222.18
19 7,316.62 86.76 135.41 222.18
20 7,181.20 85.16 137.03 222.18
21 7,044.17 83.53 138.65 222.18
22 6,905.52 81.89 140.29 222.18
23 6,765.23 80.22 141.96 222.18
24 6,623.27 78.54 143.63 222.18
25 6,479.63 76.84 145.35 222.18
26 6,334.28 75.11 147.07 222.18
27 6,187.21 73.37 148.81 222.18
28 6,038.40 71.61 150.58 222.18
29 5,887.82 69.81 152.36 222.18
30 5,735.46 68.01 154.16 222.18
31 5,581.29 66.18 156.00 222.18
32 5,425.29 64.33 157.85 222.18
33 5,267.44 62.46 159.72 222.18
34 5,107.72 60.57 161.61 222.18
35 4,946.10 58.65 163.53 222.18
36 4,782.58 56.71 165.47 222.18
37 4,617.10 54.75 167.43 222.18
38 4,449.68 52.77 169.42 222.18
39 4,280.26 50.76 171.43 222.18
40 4,108.84 48.72 173.46 222.18
41 3,935.38 46.67 175.52 222.18
42 3,759.86 44.59 177.60 222.18
43 3,582.26 42.48 179.70 222.18
44 3,402.56 40.35 181.83 222.18
45 3,220.73 38.19 183.99 222.18
46 3,036.74 36.01 186.17 222.18
47 2,850.56 33.79 188.38 222.18
48 2,662.18 31.57 190.61 222.18
49 2,471.57 29.31 192.87 222.18
50 2,278.69 27.02 195.16 222.18
51 2,083.54 24.71 197.48 222.18
52 1,886.06 22.37 199.82 222.18
53 1,686.24 20.00 202.19 222.18
54 1,484.06 17.60 204.58 222.18
55 1,279.47 15.17 207.01 222.18
56 1,072.46 12.72 209.47 222.18
57 863.00 10.23 211.95 222.18
58 651.04 7.72 214.46 222.18
59 436.58 5.18 217.01 222.18
60 219.58 2.60 219.58 222.18

It shows at 46 months my outstanding balance without interest should be 3,036.74 but on my statement its showing 4,817.34 therefore I paid only 4682.66 of the original 9500.

Lloyds statement shows the amount without interest.

60 term at 191.68 had to be set at 7.79% according the the apr calculator

shell23

you should get some professional advice on this before you speak to the bank