How have they worked out new Payments??

[nicho1120]

I wonder if sombody could help me. I have written to Black Horse to cancel my PPI. They have written back to say that they will and that the repayments will change from £78.46 to £72.00. I cant work out where they have got this figure from. THe PPI was to be paid monthly and the figures were as follows.

Optional Payment Protection - £142.46
Total charge for credit - £33.58
Interest rate - 2.334%


Amount of credit - £142.46
Amount of monthly repayment - £9.78
APR - £31.9%

Can anyone give some advice as to whether this figure is right or not ????

[nicho1120]

could anyone give me some advice on this.
Please ????

[reidnet]

Hi,
Going by the the amount that it has changed your monthly payments, they will have cancelled the policy and added what refund they gave you for the policy into your account balance.

To give you a better explanation as to how it has been worked out I would need to know a few things.

Was the Amount for the PPI added onto you loan ?

How many Months (years) was the loan over.

Was the PPI paid monthly on its own ?

Ian

[nicho1120]

Thanks Reidnet for the reply,

1.As far as i am aware i dont think the amount for the PPI has been added on to the loan. On the loan agreement it shows as £1000 for the loan and charge for credit of £236.24.It then shows all the PPI info sperate which is what I have given in the inital post.

2.The loan is over 18 months.

2. No the ppi is included as part of the £78.46 that i pay every month.

If you want me to write everything that is on the agreement to help you then i am more than willing to.Just need the advice which i appreciate.

[nicho1120]

have you any advice reidnet, i need to reply to them to say if i agree that that is how much should be knocked off ???