Payments on an ongoing loan

valers_2

Hi ,I have posted this question on the picture thread but thought it might be better placed here ,I took out a 15 year picture loan 6 years ago ,I paid ppi on it for the first 5 but successfully reclaimed it all back ,my question is now that the 5 years of paying ppi are up ,surely the loan payment should change ? I can't seem to get my head around why it shouldn't ,Thankyou very much in advance ,Kelly.

[Deleted User]

Picture's PPI policies were the most malevolent I've seen. Hopefully, poster Amersall will see your post and comment and advise on your situation better than I can. All I can tell you is that, even though your PPI has seemingly been "refunded", you will continue to pay to term end unless the loan is re-worked.
I don't know enough about this type of PPI to comment further..

amersall

Thanks money.

Valors, you need to put a claim in for the mis sell asap, let them know that you have the PPI cash back and have just realised that the whole PPI is still on the loan to term end with interest and you no longer have the cover, had this PPI been explained in full at the time of taking this, you would not have taken it, you do not believe you were given enough information at the point of sale to make an informed decision.

The most important thing you need to have is the loan reset and the whole PPI taken off the balance, this will reduce the monthly loan payment by the monthly PPI amount and save you thousands over the remaining term.

As you have had the cash back, any redress will be reduced by this but
getting the loan reset is priority.

valers_2

Hi and Thankyou very much for replying to me ,so are you saying that even that I've already successfully reclaimed back my ppi ,I can still get picture to reset my loan ? This is where I'm confused as I thought that picture would do this automatically ,so I thought that after the first 5 years the loan payments would drop as I'm no longer paying ppi but that didn't happen ,thanks in advance and sorry that I'm not quite getting it ,Kelly .

-taff

You borrowed the money for the PPI.

This money had interest added to it.

This combined PPI and interest money was added to the original loan and interest.


You received back only the original amount borrowed to pay for the PPI.

You did not receive the PPI interest back.

The PPI interest is still on the loan repayments.

You need to contact them to complain to take off the PPI interest and reset the loan. If you opt to take this money as a cheque instead, your payments won't go down.

-taff

Actually, forget all that.

Did you make a complaint to the FSCS about your loan? As far as I can tell from your previous posts, you hve already received the PPI payemtns back, but you kept the cheque instead of using it towards the loan. If this is the case, your payments will not be going down because you've already had all the PPI and interest back.

https://forums.moneysavingexpert.com/discussion/comment/44960718#Comment_44960718

valers_2

Thankyou so much for replying ,I'm so sorry if I'm coming across thick ! This is what's happened so far ,took the loan out in 2007 for £35000 ,ppi added at £8732 ,paid £475 per month ,never missed a payment so we got all our NBC back ,this was £4261 ,successfully reclaimed ppi through fscs ,got back £8204,the 5 years were up last August so we were expecting the loan payments to go down as the ppi had finished but it has remained the same , do we have to get in contact with picture or fscs ? Will they still reset the loan even though we have none of the money left ? What did you mean about them owing us money and if we took it the payments won't change ? Really sorry again ,Kelly

-taff

Forget post #5.

What you borrowed for the PPI and the interest associated with it, you've already had back. You didn't use it to pay off the loan, so your payments will not go down.

[Deleted User]

-taff wrote: »

What you borrowed for the PPI and the interest associated with it, you've already had back. You didn't use it to pay off the loan, so your payments will not go down.

Yes, this looks to be the thread the OP should have read when he received £8,200 in Summer of 2012.
https://forums.moneysavingexpert.com/discussion/1897143

I must take note of your habit of searching back through the OP's history before posting!;)

valers_2

Thanks , I think I'm finally getting my head around it now ,how hindsights a great thing ,Kelly .

-taff

Never mind, if you have any left, put it towards it.....