Thread: Cancelled PPI with First plus increase in monthly payment!

Originally Posted by joolzh13

Background: we borrowed 63,000 in Oct 05 PPI loan is £15428, the payments were £532 for the loan and £130 for the insurance..

I cancelled my PPI by telephone and was told I would recieve a letter, the letter has arrived.....

It says that the usual blurb I expected however this is the bit I am concerned about
if you wish to cancel the insurance we are prepared to make a refund of £1528.96 in respect of the premium paid and this would be credited to your loan account. The currently monthly repayment to your loan is £683.84 and the effect of this reduction in the balance would be to reduce your monthly payments to £698.07. how can the repayment go up this must be a typing error and the figures have been transposed in which case how come I have been paying £120 for insurance and my payments are only reducing by £15.
Does anyone know what I should do now?
Thanks

Hello and welcome,

Write back to them and ask for an explanation as to the breadown of their figures, the calculation of the new repayments asap. Do not agree to anything at present.

Have a look at this link from the FSA

Consumers to benefit from PPI refunds agreement

They must follow this guidence