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Adice re: HP overpayment?


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i purchased a vehicle on finance 3 1\2 yrs ago. It is now settled.

 

anyway when i got it, i reviewed the arrangements for PPI and realised it was very poor value for money so i cancelled the PPI within 28 days.

i was asked to sign an agreement to replace the other to exclude the PPI, which i did.

 

Turns out when i did the interest rate went up and didn't notice, and none of the original payments on the old agreement were removed from the Principle sum. basically my prior payments "got lost" :!:

 

when i got the settlement figure i thought there was something wrong, it was way more than i have calculated. It didn't include the previous payments at all. - should i calculate the true loss as this total of payments at the compound rate of the agreement? afterall that effectively is how much more i would have paid. Furthermore there has been no account made of payments i made after receiving the settlement figure, imo this should have been deducted from the settlement also.

with this in mind i actually owed almost nothing on settlement but i have had to pay a considerable sum.

Of course i havn't just let it lie lol, i am issuing a letter on monday and the documents "they say they have no record of my former a\c no at all - but i have copies of all my agreements, statements from payment account (absolutley everything).".

For all i know they will simply send back the overpayments, but they were very unhelpful on the phone, i am intending to launch a court claim if i don't get the response i expect within 28 days of issuing the letter which goes out monday.

 

What i would like to know before i start preparing my court action is, is it likely the court will take the same view as me as regards the compounded APR from my first payments, since obviously i borrowing was infact therefore artificially increased and i paid interest on that rate, so that to represents my actual material loss?? any views on this please.

 

Obviously it is not telephone numbers we are talking, only about £1K.

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I am unable to answer your question, just giving your thread a little nudge:)

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In light of the silence here lol, i have sent away the letter which included some data as to how the loss has been calculated as well as copies of all the relevant paperwork. I have presented my expectation of the reimbursment value as i see it - based on factual losses. I have reversed the agreements/payments and come to the conclusin that this error has cost me a compounded APR loss roughly equivalent to 200% of the missing payments. As well as payments made after the settlement figure was generated, not accounted within the final value paid in settlement (making another overpayment)

 

I am confident i can proove the costs 100% and therefore if i don't get this resolved i will be back in due course hoping someone can assist me with my court claim:) please lol.

 

I will report back in due course as to the outcome!

 

the logic of my conclusion is thus, when applying payments made to the account the first sum paid from the monthly payment is to interest, what remains pays an amount of the priniciple sum. same as a mortgage in effect.

as time goes by, the principle sum owed reduces (slowly lol).

If the principle sum was higher than it should have been then interest has been paid at a rate stated in the agreement for all the missed/lost payments. While ever the principle sum is higher than the value of the missed payments a situation exists where the missed payments should be fully reimbursable and of course interest at the rate of the agreement is compounded on that sum during the term. Therefore if the amount of missed payments had been deducted from the new agreement the monthly repayments would have been lower, therefore the amont by which they would have been lower compounded through the 3 1/2 years plus the value of the missing payments must be the loss.. does anyone agree with this? I am quite good with programming of pc's but credit agreements and APR's are like a foreign language lol so a fresh pair of eye's would be useful. (doing this analysis made me never ever want to get credit again lol - i just realised how much of a rip off credit can be even at rather modest rates)

Edited by twobeercans
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