PPI confusion - advice please?

redhaze6

Hi guys, I was wondering if anyone could shed some light on this for me as I seem to be going around in circles!
I received a letter from my bank stating i have been miss sold PPI - I didnt even know I had it on my loan. However, its the figures that are confusing me.
I took oit a 5000 loan over 5 yrs (60 months) the payment per month wss £198.60. The interest rate 21.74%. I read on a thread in this forum that of you calculate you're repayment amount without PPI then the difference would be how much PPI you have paid. According to this site, my monthly payments on 5000 over 60 months with an APR of 21.74% should be £137. This leaves a difference of £60.40 per month.
Over 60 months this is £3696!!! Surely this can't be PPI?!
By my calculations, I've paid a total of £11916.00 for a £5000 loan...is anyone able to advise?!
Thanks.

amersall

That is about right, this was Single Premium PPI and this is one of the reasons that you use for mis sell, it was in fact a loan on the original loan that you repaid to term end with interest, had you known the full cost of this PPI, then you would not have taken it.... would you?.

[Deleted User]

You only receive a refund of the PPI you actually paid, plus attendant interest and an 8% simple interest compensatory payment.

Wait for the Bank's breakdown of the figures before you go off half-cocked, but the figures you give seem about right.

amersall

The op has only received a letter from the bank, the claim has yet to be made.

[Deleted User]

redhaze6 wrote: »

I received a letter from my bank stating i have been miss sold PPI - I didnt even know I had it on my loan.

I think you'll find the letter states that you MAY have been mis-sold PPI, any complaint you make needs to provide valid mis-selling reasons-they are not admitting liability.

redhaze6

Thanks guys. Yes sorry, was a typo. May have been mis sold. I have completed the form so will have to wait to hear back but the loan is finished now and total paid was the £11916 so I was just trying to work out, after interest on the 5000 what the other 3000 was for as seems extreme amount for Ppi based on other people's amounts of approx. 1000!

amersall

£3,696 is the PPI that you paid with the interest on that, you should get this back and the 8%.
The remaining money is the loan amount and the interest on that.