Challenging First Plus Redemption Figure

jonesMUFCforever

Scotty1230_11 wrote: »

We got a cheque for the PPI so the loan should be based on 25k over 240 months at 8.9% apr.

Think the interest may have been calculated using rule of 78. Is that still legally applicable after the 2010 ruling?

Thanks

Well there you go then - problem solved!
You are still paying the PPI part of the loan because the PPI was not refunded back to the loan.
eg Loan £25k + PPi say £5k = £30k debt
Loan £25k +PPi £5k =£30k debt less ppi refunded to you =£30k loan debt still o/s.
What did you do with the cheque refund?

molerat

Very clever of them, give the PPI back instead of deducting it from the balance so they can continue charging you £45 per month interest on it.

amersall

molerat wrote: »

Very clever of them, give the PPI back instead of deducting it from the balance so they can continue charging you £45 per month interest on it.

Indeed, it is win win for these shysters :mad:.

Nasqueron

Did you use the PPI refund to pay off a chunk of the loan or did you just assume it was taken off the loan and spent it elsewhere?

pvt

When did you get the PPI refund, and how much was it? You should have been given the capital amount of the PPI plus whatever interest you had paid on it up till the point it was paid back to you.

Madness to take it as a cheque and spend it, it should have all been applied to the loan, and you should have had the option to either keep the same term and pay less per month, or pay the same per month and finish paying the loan sooner.

Scotty1230_11

Hi,

Thanks to all for replies, I received the cheque and used it to settle some other debts I had at the time. I will challenge the amount that the interest has been calculated on. Am currently waiting for confirmation on how they work out their interest payable - I want them to state that they are using rule of 78 so I can challenge it.

Will keep you posted!

Scott

Scotty1230_11

Oh and also, I just receive the PPI amount that had been added of 6122, but I think that had 8% interest added on by the PPI company. I of course lost all of that with their 25% commission.

I was so green back then...

Thanks

Scott

Nasqueron

Scotty1230_11 wrote: »

Oh and also, I just receive the PPI amount that had been added of 6122, but I think that had 8% interest added on by the PPI company. I of course lost all of that with their 25% commission.

I was so green back then...

Thanks

Scott

While PPI companies are never a good idea, in this case you at least were able to pay the PPI company, had the finance company simply removed the PPI from the loan and recalculated it you would have been billed by the PPI company on top of that - which is why you should always steer clear (and probably why the PPI company didn't ask for that). I have no idea if you could put in a complaint about the PPI company doing that but it might be worth a go as you are basically still paying for the PPI on the loan.