Northern Rock loan with huge ppi can it be reclaimed ??

[katie3105]

Hi there

A friend has asked me to help with a potential PPI claim.

 

His loan details as taken from his agreement are as follows:

Loan amount 15000

PPI 7276.50

Amount of credit 10077.90

Total amount payable: 32354.40

 

payable over 120 months apr 8.2% monthly installment £269.61

 

Taken out 23/7/04.

 

He is currently struggling to pay this and still owes £18593.09

His total payments as at 20/06/09 were £13850.11 and te last payment he made was in may 09.

 

Can anyone advise if this is possible to reclaim and if so how he could do it?

 

He has no ppi terms and conditions etc

 

thanks

[katie3105]

From my reading : 15000 over 120 months at 8.2% is a total of £21750.67 and the monthly payment should be £181.26....which means that the ppi element of his loan is £10603.73 with the interest included.

 

He has made 51 payments of £269.61 which means a total payment towards ppi of £4505.85

 

Please can someone advise what can be claimed back if any ???

 

Can he claim back the ppi with interest i.e the £10603 + the statutory interest of 8% pa and can he claim back the payments made to the ppi.

 

If he could this would vitually wipe out the loan ??

[dx100uk]

see my replies in this thread:

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/241806-cl-finance-questioner-ppi.html

 

and the 'notes for claimants' stickie at the top of this forum.

 

dx

[jdes26]

if u were mis sold it

u can claim everything

[katie3105]

Details again are:

 

Loan amount £15000

PPi £7276.50

amount of credit: 10077.90

Total amount payable : 32354.40

 

He signed loan on 23/7/04 and first payment was 27/08/04 he paid on the 27th of every month except he missed 27/12/05 and last payment he made was 27/11/08. He has not paid since and is now in arrears of approx £3500.

 

Fairfax solicitors have sent a statement to say he owes £18593.09

 

When I calculated a £15000 over 120 months at 8.2 % the total to repay works out at £21,750.67 which must mean the ppi element + interest of the loan was £10603.73.

The monthly payment according to the loan calcualtor should be £181.26 without the ppi and he has been paying £269.61 which means he has been paying £88.35 towards the ppi and he has made 51 payments altogether making a total of £4505.85.

 

He has been threatened with court action and it is important that I understand what he can claim back for mis sold ppi and at this moment I am unsure.

 

As I understand it if he cancels the PPI they would restructure the loan to take off ppi and interest left to pay which is approx £6100. That would leave a loan balance of approx £12,500. He could then make a claim for the ppi and interest he has already paid + stat 8% interest. Which would leave him a balance of around £6500 ????

 

What I dont understand is that he has paid £13750.11 off the loan and if it should not have had ppi on it at all i.e he should have paid back £21,750 he would now approx £8000. If he then claimed back the ppi paid of £4505.85 + stat interest he would only owe approx £2000.

 

HELP !!!! I am really confused

[ukaviator]

Katie is the PPI added to the loan on the same agreement with APR added?

 

PPI should be a separate agreement.

[katie3105]

yes its all added into the loan this is why I am confused as I cant seem to find a definitive answer to this query

[katie3105]

The loan is 15000 and the ppi 7276.50 with an apr of 8.2 % total to repay is £32354.40. When i worked it on a loan calculator its all lumped together and it is not seperated on his agreement.

[katie3105]

bumping this

[katie3105]

Right, this is the letter I am going to send regarding this. I would be grateful if someone could advise if what I am claiming for is correct.

 

After a lot of reading I think I have sussed what should happen.

 

The loan without ppi would have been £21,750.67 His contractual payments without ppi would have been £181.26 and since he has made 51 payments he would have paid £9244.26 off the loan leaving a balance of £12506.41.

 

He has paid £88.35 toward ppi from his monthly payments x 51 totalling £4505.85 which he is entitled to get refunded + statutory interest of 8%.

 

So if I am right the above should be refunded to him and the loan resructured for £12506.41 over the remaining period etc.

 

Is this right and here is the letter .....

 

 

 

 

Dear Sir/Madam,

 

PAYMENT PROTECTION INSURANCE COMPLAINT

 

Re: Policy number: X

 

I have been mis-sold a payment protection insurance policy for the reasons stated below and request a full refund of my premiums, plus interest paid.

 

I took out a £15,000 unsecured personal loan on 23rd July 2004 and was also sold a Payment Protection Insurance policy which would cost me an extra £7,276.50 plus interest over the life of the loan.

 

The reasons this policy was mis-sold I have set out below:

 

1. I would be paying this with interest over a term of 10 years. This I consider wholly inappropriate salesmanship as the policy term is only 5 years.

 

2. The salesperson who sold me the policy did not disclose all of the facts relevant to the policy.

 

3. I was not given the correct information when the policy was sold to me, as your salesperson did not give me detailed information on what the policy would and would not cover. For example that the loan only covered the first 12 months should I become unable to work as a result of disability or unemployment. It should have been explained to me that the policy would not cover the full period of my loan term.

 

4. I was not informed that I had the option to buy payment protection insurance from an independent provider to cover the loan at a more competitive price

 

6. It was not explained to me that the policy would only cover 5 years of a 10 year term.

 

I am requesting a full refund of all my insurance payments that I have paid to date which is £4505.85, plus the PPI policy premium of £7276.50 which I expect to be refunded back into the loan.

 

As I have been denied this money over a considerable amount of time for which you have profited from I also expect statutory interest to be added at an Apr of 8% simple from date of loan to date complaint settled.

 

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

 

Yours faithfully

Thanks in advance

[katie3105]

Please could someone look at this before I send this letter to make sure its right regarding what can be claimed. Thanks.

[dx100uk]

where you have already paid some PPI in your normal monthly payments, have you calculated the 8% from the date you paid that installment, to the date of your claim [today]

 

it would be better if you included a spreadsheet detailing how you came to these figure, as they will prob try and screw you, or if you have not charged enough, they will accept the offer, even though they will be unpaying.

 

dx

[katie3105]

No I havnt included spread sheet. But will do. Am i right in what I am asking for back ? i,e for the ppi to be refunded back into the loan and the payments he has made plus interest of 8% to be refunded. Thanks

[dx100uk]

yes , cancel/remove PPI totally and refund the ppi paid each month + 8% stat from that date to the date of your claim. [for each month paid, the 8% stat will be slightly diff]

 

dx

[katie3105]

Hi there I have just done spreadsheet and it works out that ppi paid was £4505 interest at 8% on each payment since paid works out to be £1178 so they will need to refund £5683 and remove ppi from loan altogether.

Does that sound about right? when they remove ppi from loan do they remove full amount + interest that was added at beginning or what is left to pay? thanks again

[citybloke]

Hi there I have just done spreadsheet and it works out that ppi paid was £4505 interest at 8% on each payment since paid works out to be £1178 so they will need to refund £5683 and remove ppi from loan altogether.

Does that sound about right? when they remove ppi from loan do they remove full amount + interest that was added at beginning or what is left to pay? thanks again

 

Hi Katie

How did you get on with this claim?

I'm also pursuing NR.

 

lefthandedchopstick

[katie3105]

Hi there, not been on in a while but just updating this thread. Managed to get £6500 back in PPi paid direct into bank !! Thankyou for people that helped the one thing I will say is that NR only agreed to refund it if a new loan agreement was signed.