is this amount correct

kirstycobie

hi,

been offered a payment for my lloyds ppi refund on two different loans, but when checking i think i have paid too much to settle both loans early. could someone have a look and see if its correct?

Loan 1

amount of laon 2500 78.91pm
ppi 426.31 13.46pm
total per month 92.37
over months 42
apr 16%

paid loan off after paying 8 payments
total i paid off was £2557.30 (is this too much)
ppi i have been offered is £405.23


Loan 2

amount of loan 3150 77.64pm
ppi 783.83 19.32pm
total per month 96.96
over months 60
apr 16%

paid loan off after 2 months payments
total i paid off was 3978.69 (is this too much)
ppi i have been offered is 353.81

thanks a lot for looking and any input would be grateful thanks

roonaldo

The amounts you paid to pay off loan seem correct, but your redress seems too low. I assume loan 1 was paid off by loan 2. Also when were these loans?

kirstycobie

hi,

thanks for reply.

these were not consolodation loans they were two seperate loans and both were taking out in 2002

thanks

-taff

You were only entitled to receive back the PPI you paid over 8 months for the first loan, and 2 months for the second loan, so it looks fine to me.

You had a rebate of the interest/PPI on your payback amount.
If you think they are wrong, you can ask them to recalculate, but it wouldn't be off by much.

13 x 8 = 101 plus 12 years simple interest at 8% = roughly £96 so the total offer of 400 odd is probably a refund of some of the interest.

Same goes for the second one.


There's not that much difference in the total you back back over the full term and the settlement figure if you do it early, I've checked before when I've had loans and been as surprised. There's usually a penalty of some kind even if that's just repaying a big chunk of interest.

[Deleted User]

-taff wrote: »

There's usually a penalty of some kind even if that's just repaying a big chunk of interest.

Yes, banks charge a penalty for early settlement which accounts for the seeming discrepancy.

The OP can request a breakdown of the calculation which will explain it fully.