The extra amount you paid due to PPI on your previous loan or when you refinanced/settled your loan

ivehadenough1

On the breakdown from my PPI redress it has a section called "The extra amount you paid due to PPI on your previous loan or when you refinanced/settled your loan"

This was a consolidation loan but I am not sure why I would have paid extra on the second loan if the balance of the PPI was rebated?

Thanks

[Deleted User]

The PPI would have indirectly impacted the early settlement fee, by making it the balance higher than it would have otherwise been.

amersall

With consolidation loans, when you get a rebate of PPI the remaining PPI is carried over to the next loan. You effectively still pay the remaining PPI back with interest on.

ivehadenough1

amersall wrote: »

With consolidation loans, when you get a rebate of PPI the remaining PPI is carried over to the next loan. You effectively still pay the remaining PPI back with interest on.

Sorry what would the remaining PPI be if they have given me a rebate?

amersall

If you had a loan for a year with PPI on and then you want another loan to consolidate say after 6 months, you will not have paid all the PPI or loan interest for the first loan and PPI.

The bank then gives you a small rebate of the unused PPI and interest from the loan balance to give you a settlement figure.

The total settlement figure is then put on the new loan, plus any extra cash you needed so the remaining PPI after the rebate you then pay back with interest over the new loan term and most likely a new PPI for the consolidation loan.

Win win for the bank, lose lose for you.
But now a win win for you!