PPI hidden within interest rates

lbrown2

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?

[Deleted User]

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.

Nasqueron

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 signed

[Deleted User]

lbrown2 wrote: »

I was told that PPI was commonly hidden within interest rates of loans. Has anyone else heard of this?

Yes. Anyone who listens to the falsehoods spouted by unscrupulous Claim Companies will have heard 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.

lbrown2 wrote: »

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.

If you've accused them of "hiding" PPI, it's not surprising you got nowhere with your "complaint".
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".

dunstonh

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.

WatchMan

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.