RedDeath@6:14 vs. Yes Car Credit

[RedDeath]

Howdy everyone!
Well at the moment I am claiming bank charges against LTSB and Cr@p One, and now its time to tackle the PPI and Yes Car Credit, and this is where I would appreciate this site's member's advice on the best course of action.

I was sold PPI protection on a car loan. Total PPI was £1377.45 at an APR of 19.9%. I was told that taking the insurance would give me a better credit rating and it would sway the underwriters to approve the loan. Hindsight....

I defaulted the agreement approx 2 1/2 years later, so does this mean I can claim back only half (as 5 year loan) of the PPI? I believe not but it would be nice to have this confirmed.

Also, while i settled the account they still have me down on my credit record as delinquent, and this should now have defaulted. So I need to write to them and tell them that as part of the settlement they agreed not to default my account and have my credit record entry deleted rather than ammended.

Would it be best to hold fire and get the default removed before firing this through?

Will post interest calculations separately for anyone who may need.

Cheers,
RedDeath@6:14

[hellhasnofury]

Originally Posted by RedDeath

Howdy everyone!
Well at the moment I am claiming bank charges against LTSB and Cr@p One, and now its time to tackle the PPI and Yes Car Credit, and this is where I would appreciate this site's member's advice on the best course of action.

I was sold PPI protection on a car loan. Total PPI was £1377.45 at an APR of 19.9%. I was told that taking the insurance would give me a better credit rating and it would sway the underwriters to approve the loan. Hindsight....

I defaulted the agreement approx 2 1/2 years later, so does this mean I can claim back only half (as 5 year loan) of the PPI? I believe not but it would be nice to have this confirmed.

Also, while i settled the account they still have me down on my credit record as delinquent, and this should now have defaulted. So I need to write to them and tell them that as part of the settlement they agreed not to default my account and have my credit record entry deleted rather than ammended.

Would it be best to hold fire and get the default removed before firing this through?

Will post interest calculations separately for anyone who may need.

Cheers,
RedDeath@6:14

Hello and welcome to our little forum.

My first bit of advice is to get everybit of information relating to this account. I would send them a Subject Access Request, you probably know it costs £10, because you have to prove that it was mis-sold to you. The Company will deny it of course, you signed the agreement etc etc we tricked you and you fell for it etc etc.

As regards reclaiming back half of the ppi. You have to find out if it was monthy ppi payments charged. In which you claim back what you have paid them. If it was a single ppi premium. They add the premium plus interest to the loan and I would claim for all of it, plus interest.

The other question you ask. I think, but I am no expert, if you have already settled the account, then it is settled.

Good luck

[RedDeath]

Now for the science, ehm, maths part, if anyone is interested in this....if not look away now!!!

The total loan was for £1375.45 on top of that was gap protection £550 and mechanical breakdown cover for £350. Total was £2275.45.
The monthly insurance premiums were £53.94. So to break this one down PPI cost was £1375.45 of a total of £2275.45 so this works out at 60.44%. In turn 60.44% of the monthly premium of £53.94 worked out at £32.61. This is my monthly premium for PPI Insurance only.

So to find the total cost of the loan I did £32.61 * 48 months = £1565.06
So as this is a fixed monthly premium.

Next... i did some calculations on the interest rates just to see how much this loan was actually costing me
.
APR was 19.9% so I divided this by 365 days a year and then multiplied by 12 (i could have divided directly by 12 but felt this way was better). My monthly rate worked out at 0.0163.

Next I built a spreadsheet.
In one column I have the total loan amount that goes down by £32.61 every month, until month 48 (4 years) where it has reached 0. In the column next to it I calculated the interest on the outstanding balance....

edited: can not seem to import an excel spreadsheet

To start off I was amazed that they were making £25 a month from me in interset alone on it, it wasn't until. Rip off!!

I then looked at it from the point of view to see how much they make from it:

Year 1 Year 2 Year 3 Year 4
£271.98 £195.17 £118.37 £48.49

Nice little earner huh?
Anyway, that was for who enjoys the maths, sadly I do...

[RedDeath]

Update:
Yes Car Credit went bust...well, according to my mate, and I think this may be true.
The company that deals with this is now called Direct Auto Finance.
Spoke to them last night cause my credit report has been shown me as defaulted for the last 12 months even though I settled with them about 18 months ago.
Phoned them to try and get them to ammend the credit record but they would not do so and asked me to arrange this via Equifax, so this has now been done.
Will wait for the ammendment to go through before starting my claim with them as I have been slightly economical with the truth when reporting my situation with Equifax.
Told them that I settled the account and as part of the settlement they would have ammended my credit record for the previous 12 months to show that payments had been made on time because i was in dispute with them.
Hope my little white lie works.
I can imagine this company being a pain, but after Lloyds TSB nothing surprises me anymore.

[reidnet]

http://www.consumeractiongroup.co.uk...claimants.html

I have tried to explain the differnt types of PPI in the above notes, What i can make of your PPI it was added on at the start of the loan and included in the total credit of the loan. It would appear to be a single Premium policy , where the policy amount is paid at the start of the loan in a lump sum to pay for the insurance. If this is the case and it was Mis-Sold to you I would go for the full PPI Premium plus Interest at the contractual rate, I would Calculate the Interest from the start date to the date that the loan was paid off in full.

Good Luck

Ian

[RedDeath]

Thanks reidnet,
Yes I am going down those lines. Unfortunately Yes forgot to remove the fact that I settled the claim from my credit file so I still need some meaningful conversation with them before calling in the firing squad.
I take it interest would be 8% of the PPI amount, plus possibly the interest rate that they added at the start of loan?