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Mis-Sold Loan

edited 30 November -1 at 1:00AM in Loans
6 replies 612 views
James_McKinnonJames_McKinnon Forumite
3 posts
edited 30 November -1 at 1:00AM in Loans
I had a loan from a major bank, when the loan was taken out a separate account was created with a negative balance. This balance was the total amount of capital loaned along with the total interest to take the loan to full-term as well as the total PPI to take the loan to full term.

I refinanced this loan and was given no reduction in the amount of the total balance. Surely if PPI was being stopped that day it wasn't required to be paid to full term (in effect a policy running with no payment to protect.) I enquired why they hadn't reduced the balance and they said it wasn't reduced because they weren't charging any early payback fee on this.

Surely if the PPI was ended then I should not be financing the unpaid premiums in the new loan. I refinanced the loan 6 times, each time the remaining negative balance was the capital loaned plus interest. This then led me to extend the loan repayment to 7 years (from 5) in order to make the repayments. This effectively meant that PPI in the 1st loan was refinanced 6 times.

Is this legal or was I mis-sold the loan due to an inaccurate balance?

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