How much is my PPI really costing?

[chris4673]

Hi,

 

Apologies for not being able to work out the calculations but could someone please tell me the total cost of the PPI on my loan as I believe a single payment makes it more complex?

 

The details are as follows:-

 

Amount of credit - £30,000

Protected Payment Premium - £4,500

Total amount of credit - £34,500

Monthly variable rate of interest - .639%

Anticipated monthly payments - 276

Minimum monthly repayment - £266.37

 

A minimum would be a good starting point as I realise the rate is variable (out of interest I am now paying £314.85 a month).

 

Many thanks for your help in advance.

 

Chris

[skbuncks]

Hi Chris

 

As a very rough calculation and based on 276 payments of £267 its about £9600. Additionally again based on the above your going to be repaying a minimum of £73000 on a £30000 loan; with the way interest rates are going this can only increase.

If there is any way you can afford to pay more in order to reduce the loan period I would seriously consider refinancing without PPI over a shorter timescale. If you believe you really need PPI it can be obtained much cheaper if obtained separately from an independent source

 

skb

[chris4673]

Thanks SKB,

 

Its amazing when you add it up like that - I think single payment premiums should be abolished - nothing short of farcical.

 

Moving forward I have just posted my initial letter to GE to cancel/reclaim my PPI for various reasons relating to mis-selling.

 

Fingers crossed.............

 

Thanks once again for your help (how the hell are we supposed to work these things out!!)

[hellhasnofury]

Thanks SKB,

 

Its amazing when you add it up like that - I think single payment premiums should be abolished - nothing short of farcical.

 

Moving forward I have just posted my initial letter to GE to cancel/reclaim my PPI for various reasons relating to mis-selling.

 

Fingers crossed.............

 

Thanks once again for your help (how the hell are we supposed to work these things out!!)

 

Hello,

 

Just found your post and wanted to wish you luck with your claim.

 

The information that you give you on the loan, is there to mis-lead you. People only tend to look at the amount they want to borrow and how much can they afford to pay per month.

 

If they had disclosed the fact that they would be charging you over £40,000 in interest. you may have though twice. In that £40,000 interest there is hidden interest that they applied to the ppi. I do hope that you have gone for that as well and not just the premium, and then asked for contractual interest on top.

[chris4673]

Thanks Hell,

 

I have only sent the letter today which effectively is claiming the initial amount plus interest. I am sure when I receive the usual fob off letter I can pursue this further.

 

I have successfully claimed £3k bank charges but for some reason this seems a lot different (more confusing, more legalities, less general info on the subject, less coverage etc)??

 

I realise GE seem to be one of the worse culprits so hopefully that will stand me in good stead.

 

I will let you know in around 8 weeks their response!!

 

Thanks again, much appreciated.

 

Chris

[hellhasnofury]

Thanks Hell,

 

I have only sent the letter today which effectively is claiming the initial amount plus interest. I am sure when I receive the usual fob off letter I can pursue this further.

 

I have successfully claimed £3k bank charges but for some reason this seems a lot different (more confusing, more legalities, less general info on the subject, less coverage etc)??

 

I realise GE seem to be one of the worse culprits so hopefully that will stand me in good stead.

 

I will let you know in around 8 weeks their response!!

 

Thanks again, much appreciated.

 

Chris

 

Hello Chris,

 

If you have successfully reclaimed back £3,000 in bank charges you are halfway there with the ppi.

 

It is basically the same process,

 

Get your info SAR

 

Work out the figures (which I agree are very confusing, but you will manage it) As I said previous the interest they charge is hidden in the total charge for credit, and they calculate differently according to the length of the premium. Sometimes I will run for the whole term, sometimes it won't

 

Sent your prelim letter

 

Send your letter before action

 

Complain to the FOS in loan taken out before 2004

 

or Court.

 

They will deny just like the bank charges, but will pay out.

 

There is a programme on tv, on Friday, I think. It is about the mis-selling of ppi, Just watch the flood gates open.

 

The process of reclaiming is still in its infancy, but watch this space, it is about to explode. Many people, not just on this site and being sucessful in reclaiming it back. payment from £72 to over £7,200.

 

So be determined and go for it. and as you mentioned please ask for contractual interest on top. It is money they should never have taken and they deprived you of it.

 

If you need a hand with the figures, I'm not too bad, just give me a shout.

[jivebunny]

Hi

 

i have the same query, but can work out the cost from a formula on another thread. never good at maths!

 

can anyone give a really easy breakdown with all the + - x / etc so that i can attempt again.

 

just in case i still cant get it, my figures are as follows:-

 

Loan approx £48,000 September 04

PPI £24.25pm over 17 years

37 payments made to date

6.5apr at time loan taken out fixed at 5.99% (whatever that means) for 7 years.

 

i dont even know if the ppi is covering me for the whole 7 years or only covering me for 5, no one told me or asked if i wanted the ppi in the first place.

 

doing one for my friend as well same sort of thing.

 

Loan £41,300 over 3000 months (this sounds forever)

PPI £20.65 over the same period???

7.30apr at time of loan (not fixed)

132 payments made to date.

 

 

i think that is everything

 

any assistance appreciated.