Egg Loan Agreement shows £2,057 PPI but Egg say I've never had it?

vdubmad

Hi, I found an old loan agreement from Egg which clearly shows PPI at £2,057. I wrote to them this week and today received two letters both postmarked the 5th June.
The first asks for my bank details and change of address confirmation, the second states that they have investigated and I have never paid PPI on the loan?
I can't honestly remember what went on in 2001 but I know that on other credit, I never took out PPI due to being in very stable employment. The loan was for £10,000 and it clearly states the total amount being £12,057 inc the PPI.
I'm currently paying Capquest back after having financial difficulties and reducing my payments in 2008 and I'm now @£200 from clearing this debt. (yay!)

I'm totally confused by the whole episode!

Has anyone else come across this and can anyone advise what I should do next?

Many thanks everyone!

-taff

It's very unlikely that you paid PPI. If you borrowed 10,000 then the extra 2057 is interest, not PPI. With PPI it would have been nearer 15,000.

vdubmad

It clearly says PPI on the loan agreement, not interest or a percentage payable. Trouble is this account is now with Capquest so not sure if a SAR will provide any other info...

-taff

Well, you can send a SAR to Egg and see whats left. As you deafulted though, any redress will compensate for that, so you won't get the figure you quote above.

I still think it's interest......

[Deleted User]

Just because your agreement shows PPI doesn't mean you actually paid this. You could have cancelled within thirty days, for example, and paid no PPI at all.
If you've sent the Bank a copy of this agreement, ask them to explain the seeming discrepancy between what they say and your documents.

I agree with -taff that the amount sounds more like interest than PPI.

amersall

vdubmad wrote: »

It clearly says PPI on the loan agreement, not interest or a percentage payable. Trouble is this account is now with Capquest so not sure if a SAR will provide any other info...

Does it say the PPI amount, the interest amount for the PPI and the monthly payment that you would pay for the PPI, and does the loan monthly payment and PPI monthly payment, total the whole monthly payment you are making ,or is the PPI only showing on the agreement but you did not take this or pay for it?.

vdubmad

Hi all, firstly thanks to everyone for their responces.

Actual agreement states:
Interest at 10.25%, APR 10.7%
Prinicipal loan £9957.00
Loan Payment Protection £2059.11
Total £12016.11
60 monthly installments at £256.76

Your loan payment Protection - this is the premium payable to the insurers for the protection you have chosen in respect of Accident, Sickness, Unemployment or Death with an excess oersiod of 30 days covering (me) in accordance with Egg Personal Loan Payment Protection Policy document supplied to you.

There is no opt out area on the agreement and I've never willingly purchased when applying for credit. I'm going to SAR as suggested (thanks!) to see what's going on in regards to this. If I cancelled it after the loan was taken, I'm happy to accept it but I really can't remember what happened as it's 12 years ago now.

Really, really appreciate everyone's comments though, thank you all

I'll let you know the outcome!
Cheers

-taff

So your loan was for less than 10,000? More likely to be 9,000 or less.....

[Deleted User]

vdubmad wrote: »

There is no opt out area on the agreement

The option to cancel the insurance would have been sent separately if you had actually taken out the insurance. As it appears you didn't, it's not surprising that you have no documents detailing your right to cancel.

I think you're wasting £10 on this SAR letter.

vdubmad

Hi all, just thought I'd update you all.

After the confusion of the two letters, I then received a follow up letter requesting confirmation of my address and bank details. I posted that info off last week and yesterday received a letter from Egg advising that they have upheld my complaint and as a result have been awarded £4660.17!

£2897.31 PPI paid
£539.43 interest
£2188.02 8% interest (compensation)
= £5624.76
- £964.59 paid rebate (from when I went into arrears)
£4660.17 payable

Absolutely stunned! Thanks so much to all who offered advice and encouragement! That's my outstanding debt nearly cleared - only 12 months to be debt free now

maggy50

vdubmad wrote: »

Hi all, just thought I'd update you all.

After the confusion of the two letters, I then received a follow up letter requesting confirmation of my address and bank details. I posted that info off last week and yesterday received a letter from Egg advising that they have upheld my complaint and as a result

have been awarded £4660.17!

£2897.31 PPI paid
£539.43 interest
£2188.02 8% interest (compensation)
= £5624.76
- £964.59 paid rebate (from when I went into arrears)
£4660.17 payable

Absolutely stunned! Thanks so much to all who offered advice and encouragement! That's my outstanding debt nearly cleared - only 12 months to be debt free now

Well done !! You had the evidence and went for it in spite of negative advice. Enjoy :T