Paragon insurance rebate

Saintsfc123

Hi, my wife and I took a paragon loan out through a crowd called loan makers for £50,000. We also took out insurance as we were told the interest rate would be less because of this. Anyway I cancelled the insurance 11 months later as the repayments were high and hoped it would make the monthly payments cheaper. It only came down £42 a month and I never challenged this until now as we never received any statements until I phoned up on Friday and asked for one and it came today. I'll give a breakdown of what was borrowed and when etc.

£50,000 borrowed
£17,500 insurance premium

Total borrowed on 14/05/2007 £67,500.
Insurance rebate on 15/4/2008 £5,426.
We have been paying off £61,240 since the rebate and the loan is now at £51,000. Should we not of received the full amount of insurance as a rebate and if so have we been overpaying on the interest of the loan. Thanks in advance.

magpiecottage

You can certainly complain that the plan was missold. You need to make that complaint to whoever sold it.

If you have not received any statements on your loan account, you may also have a valid complaint that the lender was not entitled to charge interest for much of that time (rather like Co-operative Bank). That complaint would be against the lender, not the seller, though.

Saintsfc123

Thanks for your reply. Things have moved on since then. I'm in an IVA and they have contacted me to say that I'm due a substantial amount back from loan makers. Does that amount go towards my IVA even though I'm still paying for it through the paragon loan or am I entitled to put that amount into the loan and any interest I believe I've overplayed since the loan was taken out?