Help needed with PPI and loans

[vanhalen1]

Dear all
can anyone help regarding loans and ppi . My girlfriend has ended up with a loan of £19050.00 over 7 years , paying back a total of £40545.12!
She originally had 2 loans

loan 1 £11000.00 8.9% 1.4.2004
ppi £2855.99
£13855.00
Int £4895.00
Tot £18751.32 84 x 223.23 from 1.7.2004
(£6250.44 - 28 x 223.23 payments
made till 16.11.2006)




Loan 2 £5300.00 10.9% 12.1.2005
ppi £1062.09
£6362.09
Int £1582.39
Tot £7944.48 48 x 165.51 from 12.4.2005
(£2979.18 - 18 x 165.51 payments
made till 16.11.2006)

When she saw the Halifax in Nov 2006 she asked for help regarding these 2 loans and some other debt including her Halifax credit card.They said they could lend her a new loan of £19050.

Loan 1 £9492.76 (this was left on the loan )
£771.58 PPI refund
£8721.18

Loan 2 £4029.26 (this was left on the loan)
£194.54 PPI refund
£3834.72

Loans 1 and 2 after fefund £ 12555.90
Halifax credit card £ 2401.13
Extra money £ 4092.97
£ 19050.00
PPI £ 8572.51 + interest on ppi of £4010.69!
Interest on £19050 of £8911.92

Total £ 40545.12
86 payments of £482.68

I cant see how they can be allowed to take 2, insured seperately, loans, add more money to make a new one, then subject this total to combined ppi and interest, albeit after a refund on ppi. If shed been sold a seperate loan then i think there wouldnt have been such a massive total to pay off at the end.

Loan 1 down to .......£9492.76 Inc PPI Nov 2006
Loan 2 down to........£4029.26 Inc PPI Nov 2006
Loan 3 (example) £5527.98 Inc PPI
Total £19050.00

Example Loan 3 £5527.98 10.9%
PPI £1100.00
£6627.98
Interest £1600.00
Total £8227.98 48 x £171.42

Payments left on the now 3 loans would be;

Loan 1 ; 56 payments of £223.23 left . £12500.00
Loan 2 ; 30 payments of £165.51 left . £4965.00
Loan 3 ; 48 payments of £171.42 left . £8227.98

Total £25692.98
Instead of £40000.00

Her payments would be ;
£560.16per month for the first 30 months
£394.65 per month for the following 18 months
£223.23 per month for the final 8 months.

Ive written to the ombudsman about this who says that the Halifax did this to lower her monthly ougoings .The new loan would be cheaper for the first 30 months as it would be £482.68. But this would go on for a total of 86 months!Theres a £15000.00 difference in the 2 loans final payments. I think thats worth fighting for.
Hope this hasnt been TOO boring.

Thanks

[hellhasnofury]

Originally Posted by vanhalen1

Dear all
can anyone help regarding loans and ppi . My girlfriend has ended up with a loan of £19050.00 over 7 years , paying back a total of £40545.12!
She originally had 2 loans

loan 1 £11000.00 8.9% 1.4.2004
ppi £2855.99
£13855.00
Int £4895.00
Tot £18751.32 84 x 223.23 from 1.7.2004
(£6250.44 - 28 x 223.23 payments
made till 16.11.2006)




Loan 2 £5300.00 10.9% 12.1.2005
ppi £1062.09
£6362.09
Int £1582.39
Tot £7944.48 48 x 165.51 from 12.4.2005
(£2979.18 - 18 x 165.51 payments
made till 16.11.2006)

When she saw the Halifax in Nov 2006 she asked for help regarding these 2 loans and some other debt including her Halifax credit card.They said they could lend her a new loan of £19050.

Loan 1 £9492.76 (this was left on the loan )
£771.58 PPI refund
£8721.18

Loan 2 £4029.26 (this was left on the loan)
£194.54 PPI refund
£3834.72

Loans 1 and 2 after fefund £ 12555.90
Halifax credit card £ 2401.13
Extra money £ 4092.97
£ 19050.00
PPI £ 8572.51 + interest on ppi of £4010.69!
Interest on £19050 of £8911.92

Total £ 40545.12
86 payments of £482.68

I cant see how they can be allowed to take 2, insured seperately, loans, add more money to make a new one, then subject this total to combined ppi and interest, albeit after a refund on ppi. If shed been sold a seperate loan then i think there wouldnt have been such a massive total to pay off at the end.

Loan 1 down to .......£9492.76 Inc PPI Nov 2006
Loan 2 down to........£4029.26 Inc PPI Nov 2006
Loan 3 (example) £5527.98 Inc PPI
Total £19050.00

Example Loan 3 £5527.98 10.9%
PPI £1100.00
£6627.98
Interest £1600.00
Total £8227.98 48 x £171.42

Payments left on the now 3 loans would be;

Loan 1 ; 56 payments of £223.23 left . £12500.00
Loan 2 ; 30 payments of £165.51 left . £4965.00
Loan 3 ; 48 payments of £171.42 left . £8227.98

Total £25692.98
Instead of £40000.00

Her payments would be ;
£560.16per month for the first 30 months
£394.65 per month for the following 18 months
£223.23 per month for the final 8 months.

Ive written to the ombudsman about this who says that the Halifax did this to lower her monthly ougoings .The new loan would be cheaper for the first 30 months as it would be £482.68. But this would go on for a total of 86 months!Theres a £15000.00 difference in the 2 loans final payments. I think thats worth fighting for.
Hope this hasnt been TOO boring.

Thanks

Hello V,

Unfortunately the banks are in the business of making profit, and will muddle you with figures. Did your girlfriend choose to have ppi or were they made as a condition of getting the loan

They obvious knew she was having financial difficulties and came in for the kill.

Maybe instead of argueing about the difference with the loan amounts, you should go after them for the ppi on all of the loans

[vanhalen1]

thanks hhnf for your reply.
She asked for some insurance unfortunately, but wasnt offered an alternative company. Thats what makes it so galling.(?)
£12000 on top of the cash loan of £19000 just seems so unfair, especially as i know now , of other brokers. I know theyre in the business to make money but surely there must be some sort of duty of care. I know that sounds like bs.
Am i right in thinking you have no recourse if you say to the ombudsman , i wasnt told of cheaper alternatives?Just seems like a con.! An unbelievably expensive one to the more vulnerable people. Ive learnt a lot these last few months and im so grateful to have stumbled over you and others here on this site. As press reports show, PPI is the most profitable thing the banks have.It is unbelievable the more you delve into it.