Scared Loan Help Needed

multifuction

HI M8, Scared loan help needed.

DURATION OF FIRST LOAN 038 MONTHS 10.9%

Borrowed cash loan £5,000.00 + Interest on cash loan of £946.48 + PPI loan of £844.25 + interest on insurance loan £159.79 Total loan to pay over 038 months £6,950.52.

I received my first personal loan at our local bank on the 20th October 2005 for £5,000.00, my monthly payments including PPI was £193.07. I made regular payments by direct debit up to 30th December 2006
Total amount paid for 14months £2702.98.

DURATION OF SECOND LOAN 048 MONTHS 8.9%

On 30th December 2007 I wanted more money therefore I received my second personal loan at our local bank for further £5,000.00, my monthly payments including PPI went up to £359.22.

Now this was the way the bank manager worked out. Borrowed cash loan £10,000.00 + Interest on cash loan of £2,022.56 + PPI loan of £4,341.84 + interest on insurance loan £878.16 Total loan to pay over 048 months £17,242.56.
To cut the storey short I want to know why the bank manager did not deducted £2702.98 from £10,000.00 I paid over the last 14 months and why the duration of loan went up to 48 months. Has the bank manager made a mistake? I will appreciate your advice and help on this matter. I will thank you from the bottom of my heart.
:mad:

CLAPTON

although i can't explain why there was no reduction due to the amount you have already paid these are my observations

a. first paying PPI is total madness.

the first loan added PPI of 946
but the second added the absolutely amazing amount of 4,341...
plus you are paying interest on this too!

in addition to being very very expensive they usually sell it as a single payment policy and then lend you the money so there is no refund when you terminated it.

so your repayments were 2702 for 14 payments

of that they would have deducted the full PPI of £946 and of course you paid interest of about £700 during that time too

so 1,646 wouldn't have been refundable in any event...
but I dont know what happened to the other 1,000

multifuction

Hi Clapton
Thanks for helping me to understand how the loan was worked out, although I have not fully understood it has now been nearly over two years I have kept the monthly repayments on my loan and I wrote to them to cancel my PPI on a number of occasions but they insist I have made an agreement with the loan and it can not be cancelled. Any advice on how to cancel PPI this will reduce my monthly also.
Thanks again for your advice and for trying to help. I appreciate your help again.
:mad:

Savvy_Sue

There is a sticky near the top of this board on PPI and reclaiming it, could you have a look at that and see if it helps you?