PPI added to settlement figure Nemo loans

stumakedoandmend

Hi this is my first post on the forum, I decided to join after the phone call I received this week, regarding a PPI claim company called beech consumer services, they told me I am owed around £6000 from a loan back in 2007, I explained that I never take out PPI it was added to the loan but I canceled it and the payments were amended accordingly, the company insisted this could have been added to the settlement figure. So this got me thinking, I dug out the paper work for the loan and looked at the final settlement figure £23.117, the original amount was £25.000, I had paid the loan for 42 months @ £ 240.00 pm, this equals £10.080, yet I had only paid off £1883, the interest rate on the loan at the time was 7.7%.

so that leaves over over £8000 extra on the settlement figure, I know they add interest on the settlement figure, but could they of added the PPI as well?

There is no break down of the figures with the settlement, I just assumed that was it at the time, my question is, has anyone come across these types of tactics before and can I apply for a for a full break down of interest charges etc, how do i go about this.

Any advice will be much appreciated

Cheers

amersall

Contact the bank, don't let a claims co do this, ask for info on this loan, you need to know if PPI was added and if you repaid this to term end with interest, if you did, when you settled this loan you would have received a rebate of the PPI but the remaining PPI would have been paid back by you in the settlement figure.
It could be, depending on the loan term, the interest on the £25,000 loan over the term.

magpiecottage

By my reckoning, after 42 months at £240 per month on a £25K loan at 7.7% you would owe just over £21,000 after 42 months.

However, there are other factors that may affect the settlement figure. These include variations in the interest rate, other charges at outset, and early repayment fees.

So we cannot know. Of course the ambulance chaser won't either - they are just guessing.

stumakedoandmend

I was told there was no fee for early settlment, and the interest rate was slightly lower when I took the loan out, is it still worth asking for a breakdown of costs to settle my mind, would they give me this over the phone?

amersall

Yes, contact them and ask, if there is no PPI on the agreement there is a good chance there was not any added to the loan.