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PPI hidden within interest rates
lbrown2
Posts: 1 Newbie
Hi,
I was told that PPI was commonly hidden within interest rates of loans. Has anyone else heard of this?
I received car finance of which the annual interest rate was 4.6% yet the APR was 10.1%. This seems quite a difference considering the only add on payments to the loan were £125 finance facility fee and £95 purchase fee.
I have wrote to the company involved but appear to be getting nowhere. Any ideas?
I was told that PPI was commonly hidden within interest rates of loans. Has anyone else heard of this?
I received car finance of which the annual interest rate was 4.6% yet the APR was 10.1%. This seems quite a difference considering the only add on payments to the loan were £125 finance facility fee and £95 purchase fee.
I have wrote to the company involved but appear to be getting nowhere. Any ideas?
0
Comments
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No. It's a claims company myth.
Sounds like you have been quoted both flat rate and APR, which is how car finance tends to like to do it.0 -
If you wrote to them claiming PPI was hidden in the interest then it's not surprising you got nowhere!
As zx81 says that's a myth, car finance companies always like to quote one rate to you (the lower one obviously) and put the real interest rate on the forms
You could have had PPI on the finance but it would be detailed on the documentation you signedSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Yes. Anyone who listens to the falsehoods spouted by unscrupulous Claim Companies will have heard this.
I was told that PPI was commonly hidden within interest rates of loans. Has anyone else heard of this?
It's simply not true.
On loans PPI is shown clearly on the original agreement.
On credit cards, it is itemised separately on each monthly statement.
It is never "hidden" in the interest.
If you've accused them of "hiding" PPI, it's not surprising you got nowhere with your "complaint".I received car finance of which the annual interest rate was 4.6% yet the APR was 10.1%. This seems quite a difference considering the only add on payments to the loan were £125 finance facility fee and £95 purchase fee.
As zx81 says, sounds like flat rate and APR have been quoted and you are seeing what you want to see.
If you remain unconvinced, write a polite letter of enquiry (not complaint) asking them to explain in detail the apparent "discrepancy".0 -
I was told that PPI was commonly hidden within interest rates of loans. Has anyone else heard of this?
Yes, we have heard of it. It is the usual BS rubbish that dodgy claims companies tell people in their lies to get people signed up.
However, it is not possible for PPI to be hidden in the interest rates. Just cannot happen.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 -
One thing car finance companies tend to do is mix the cost of PPI amongst any other insurance (like GAP or breakdown). Looking at the agreement, it would be clear that you had PPI, but working out exactly how much it would cost you would be a bit of a pain.0
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