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Rule of 78


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Two questions really,

 

1. Does anybody know the basic principles of the rule and how a settlement figure is achieved? I am 16 months into a 36 month loan agreement for a £6170 inc interest, plus ppi for £1471. I have asked to cancel and been offered £9.70 of each outstanding repayment, which adds up to £194. Does this sound normal?

 

2. I've been looking into ending the loan and whilst looking through the loan agreement i've noticed that my date of birth is in correct, 1982 instead of 1983. I know I should have checked this, but just rushed to the agreement back to the loan company. Now I can't see I would have got this incorrect, not really something i forget. This means that if I were to claim, according to the terms and conditions of the PPI, "your right to any benefit under this policy shall end." What would the chances of claiming back the full amount of ppi do I have.

 

Any help would be grateful.

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