Can someone help me with Lloyds TSB loan please.
I took out a loan in June 2007 for £7500 for 60 months and on my agreement the amounts are as follows.
CASH LOAN LOAN PROTECTION INSURANCE TOTAL LOAN
Loan amount £7500.00 £1954.76 £9454.76
Monthly Repayment £161.64 £42.13 £203.77
Number of payments 60 60 60
Total Amount Payable £9698.40 £2527.80 £12226.20
APR 11.10% 11.10%
This is exactly how it is on the loan agreement i have. The reason im writing this is that i wanted to cancel the loan protection but continue paying the loan. So i was expecting to pay about £42.13 (less the interest) less a month but if i do cancel it only £15 comes off. So i'll still be paying £188.77 a month.
I asked why the full amount wont be taken off and they said its because the PPI
Now im not the brightest bulb but i was assuming that with each payment i make of £203.77, £161.64 will come off the loan and interest which as you can see is £9698.40. And then the remaining £42.13 will come off the PPI and interest which is £2527.80.
They say the reason why they cant take the full amount of PPI off is because to cancel the PPi they will have to restructure the loan therefore basically taking out another one to pay this one off (or something along those lines). Therefore leaving me with £188.77 a month rather than i origion loan amount which is £161.64.
Now this front loaded insurance wasnt explained out to me when i took out the loan. I took it out online through the Lloyds
To settle my loan i owe £5441.99 including the interest with a settlement fee of £91.64 and a PPI rebate of £335.93 so it'll cost me £5177.70 to close it.
Is there any way i could get them to reduce the PPI by the full amount that they're charging me? So for instance if they're charging me £40 a month for PPi can i get them to take the £40 off the £203.77?
Ideally i'd like it written off but thats not going to happen is it lol.
Any help would be great, thanks
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