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Interest on loan does not add up. Could it be hidden PPI?
Sazka
Posts: 1 Newbie
Could someone please tell me if I'm being completely stupid or could there be PPI hidden in my loan repayments.
The loan amount was for £10,717 at an interest rate of 4.19% over 48 months.
As per a loan calculator the repayments should have been £242.89, total repayment of £11,658.72.
As per my statements my repayments were £260.69. Making the total repayment to be £12,513.12. This is a difference of £854.40.
Thanks for you help! :huh:
The loan amount was for £10,717 at an interest rate of 4.19% over 48 months.
As per a loan calculator the repayments should have been £242.89, total repayment of £11,658.72.
As per my statements my repayments were £260.69. Making the total repayment to be £12,513.12. This is a difference of £854.40.
Thanks for you help! :huh:
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Comments
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PPI is never hidden. It will be detailed on your loan agreement.0
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Yes it could be 'hidden', this is not a CMC myth it is the common way of describing policies that were sold without the cost being pointed out explicitly. The seller then relied on people not reading the paperwork fully (because they needed the loan and did not look beyond the cost to see if it was affordable), read Martin's pages on this. It was not unknown for people to take loans over the phone and then be quoted a figure that allowed for the cost of the PPI to be included. The place to check is the agreement and ask for the lender to send you one if you don't have it to hand.0
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People taking loans over the phone would still have received a credit agreement detailing PPI. So not "hidden" at all.
Claims companies perpetuate the myth that PPI was hidden in the interest, it's not.0 -
Could someone please tell me if I'm being completely stupid or could there be PPI hidden in my loan repayments.
The loan amount was for £10,717 at an interest rate of 4.19% over 48 months.
As per a loan calculator the repayments should have been £242.89, total repayment of £11,658.72.
As per my statements my repayments were £260.69. Making the total repayment to be £12,513.12. This is a difference of £854.40.
Thanks for you help! :huh:
Is that the APR you are quoting or could it be a Flat Rate of interest, common with car loans arranged through dealers.0 -
Moneyineptitude wrote: »People taking loans over the phone would still have received a credit agreement detailing PPI. So not "hidden" at all.
Claims companies perpetuate the myth that PPI was hidden in the interest, it's not.
So by that reasoning everybody would have read all of the paperwork and the credit agreement and therefore no one was ever mis-sold and the billions of pounds paid out in redress and fines for the companies for the mis-handling of complaints (lying) was some sort of happy accident for the general public.
Why are the banks paying out millions in redress?0 -
Why are the banks paying out millions in redress?
It certainly isnt because it is hidden in the interest. That is the topic in question for this thread and that is all that matters here.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Could someone please tell me if I'm being completely stupid or could there be PPI hidden in my loan repayments.
The loan amount was for £10,717 at an interest rate of 4.19% over 48 months.
As per a loan calculator the repayments should have been £242.89, total repayment of £11,658.72.
As per my statements my repayments were £260.69. Making the total repayment to be £12,513.12. This is a difference of £854.40.
Thanks for you help! :huh:
Looking at your figures I would say your loan was at a flat rate (not apr) of 4.19%
Was it for a car? Car loans are often advertised with a flat rate as that makes them seem cheaper to the unwary.
If you plug your figures in here
http://www.carbuyingguide.org.uk/car-loan-calculator.php
you will find that the amount of interest you are paying is correct for a loan of £10717 over 48 months at 4.19% flat rate.0 -
12513.32 - 10717 = 1796.32 / 4 = 449.08 / 10717 = .0419035 or 4.19%.
The paperwork will show the apr at 8.1%0 -
It certainly isnt because it is hidden in the interest. That is the topic in question for this thread and that is all that matters here.
The point in question is 'could it be hidden' so surely the answer must be no you were never mis-sold and yet thousands of people have complained about PPI that they did not realise they had PPI and the companies have paid out because they are so warm hearted and kind.
So when a single premium PPI is added to the total loan cost that was okay too because this would have been disclosed. Lets get real here, the providers and their staff lied0
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