Thread: Paragon PPI Head spin

Originally Posted by BoD-oF-tHe-GrEeN

Hi to every one i've been reading this forum for ages and my head is spinning as what to do next or first should i say.

Me and my wife took out a secured loan with Paragon and got PPI with it as we understood if we did not take it there would be no loan. Also we had to payup front so had to get a bigger loan.

Loan amount £15000
added to the loan PPI loan amount £4050
11.9% apr at the time taking it out 20/04/2005
total loan £19050
this was joint loan but single cover plan.

Do we have a case and what is the first thing we should do.
Thanks Andy

Hello BOTG

Welcome to the forum.

The first thing you need to do is get all the information you need to ask for a refund.
You have put some figures in the above post Do you have your credit agreement?????

What you need to do is find out what the total payable is/was

How much were your monthly payments and what was the term

They normally add the ppi premium to the loan and then charge interest on the total amount at the rate of interest. This can be a hefty amount.

If you know how to work it out put up the figures, if you don't put up what info you do have and we can help:grin:

Originally Posted by BoD-oF-tHe-GrEeN

Hi there hellhasnofury thanks for the reply.
Her goes this is all the info i have.

Yes i have a credit agreement with paragon
this it what is says or as listed

A Cash loan amount £15,000.00

B Payment protection premium £4,050.00
loan amount

C Total Amount of credit (A+B) £19,050.00

D monthly rate of interest 0.9450%

E APR 11.9%

F number of monthly payments 120

G monthly repayment £266.09 You will pay them back £31,930,80 for a loan of £15,000.

Further down it say total price for the insurance premium with interest will be £6,788.53 if rates do not change. They are very nice to tell you how much the actually have charged you for the PPI and ppi interest. We need to know if the interest rate has increased, can't see them putting it down

do you need any more info to work it out for me as i havent got a clue.

Big thanks Andy

Hello Andy,

Is the loan still running, and if so are you going to cancel the ppi ?????

Normally the ppi will only cover you for the first 3-5year period of the loan, but you pay it off over the term of the loan if that make sense.

Just looking at the figures, they charged you £4,050 which appears very high on a loan of £15,000. It is over a third and then charged you £2,738.53 in interest. £6,788.53 divided by 120 = £56.57 a month

So I think the figure that you are after is what they quoted £6,788.53 and of course you want interest at their rate of 11.9% on top, to make you in the postition that you were had they not applied ppi,

If the loan is still running and you cancel the ppi, which you can even if they tell you you can't, and without taking out another credit agreement. They will refund the unpaid portion of the ppi into the balance of the loan therefore reducing the amount you owe them. This is the standard practice of most companies.

The portion that you have paid them, ie from the start of the loan to when you cancel is the bit you ask for back, with the added interest bit, this can be worked out once you cancel it and you know how much they have refunded back.

If the loan has finished you ask for the whole lot back, with interest:grin:

Originally Posted by BoD-oF-tHe-GrEeN

Hi hellhasnofury yes the loan has 7 years left to run. Time to cancel me thinks if we was'nt so desperate at the time for the money we would have never taken the loan out but that what these companys thrive on.

So what do i do first cancel the policy and see what they take off the loan.

When do i send the misold polecy leter?

or if you could list what order i should do thing in.

Thanks Andy

Hello Andy,

If there is seven years to run it should reduce the balance outstanding, but wait and see.

Ok I would send them a letter cancelling the PPI and asking for a Breakdown of the refund to the loan. If they tell you that you cannot cancel the ppi, or that you have to take out a new loan, you don't and don't let them tell you overwise

There is a link from the fsa regarding treating customers fairly. I will try and link it to your thread. Maybe quote a bit from it in your cancellation letter

Ok once you know that the ppi is cancelled and the amount that has been refunded to the loan balance, we can then work out what paymnets you have actually made to them and then we send a preliminary letter asking for it back, stating the reasoning behind the mis-selling. You give them 14days + 2days for postage. If no or poor response, we sent them a letter before action, giving a further 14 + 2 days. If not prepared to discuss

Then you decide whether to go the fos route or court

There is no need to rush these matters, patience prevails in my experience.

If you need help with letters etc, just ask or post any letters you do for checking before you send them. Above all do not enter into any telephone conversations with them. All correspondence must be done by letter, sent recorded delivery and keep everything in a file foryour reference.

Originally Posted by BoD-oF-tHe-GrEeN

ok i will get the ball rolling and wright a letter to them canceling my PPI and ask for a Breakdown on my loan.

See what happens from there are there any standard letters that i may use?

Thanks for all your help so far
Andy

Hello Andy,

Here is the link I mentioned

Consumers to benefit from PPI refunds agreement

Maybe send a letter like this, just off the top of my head, use it amend it if you like

Your address

Their Address

Date

Dear Sir/Madam

Account No XXXXXXXXXXX
Name XXXXXXXXXXXXXXX

I am writing to request that from date of receipt of this letter that the payment protection insurance applied to this loan is cancelled. I would appreciate that this cancellation is made in accordance with the guidence from the Financial Services authority in "treating customers fairly".

I further require written confirmation from yourselves, that you have cancelled the payment protection and a breakdown of the loan and any rebate of ppi and ppi interest to the balance outstanding.

I await your response within 14days

Yours faithfully

Originally Posted by BoD-oF-tHe-GrEeN

Thanks for that i will send it of in the next couple of days and go from there.

Thanks Andy

Your welcome

and let the games begin:grin: