MM V's Welcome Finance

[moneymania]

Hi. Noticed that they have added the Indemnity Insurance premium to the amount of credit. They are not supposed to do that...are they?

[rippedoffagain]

Hi. Noticed that they have added the Indemnity Insurance premium to the amount of credit. They are not supposed to do that...are they?

 

Ah

 

They have sent me a copy of the executed agreement.

Loan details as follows:

(a) Amount of Loan - £10000

(h) Optional PPI - £1620.37

(j) Amount of credit for PPI - £1620.37

 

(i) Acceptance Fee - £235.00

(m) Mortage Indemnity - £1100.00

(n) Total charges other than interest - £1335.00 (i+m)

 

Total Amount of credit (a+j) - £11620.37

Total amount of Loan (k+n) - £12955.37

 

Interest rate - 1.2% per month

APR 18%

 

Amount of each monthly payment - £176.03

Number of Monthly payments - 180 months.

 

That's all the figures that are on the agreement. The PPI, I have no details on. Bet it only runs for 5 years. wate of money, never wanted it never gonna use it. Indemnity, waste of money, there's no way on this earth that welcome could force the security on our property, miss-sold.

 

Not sure about indemnity insurance, but I am 95% certain that they can't include the acceptance fee. I have used an excel loan calculator, and they realy do appear to be adding interest to the acceptance fee.

[moneymania]

Hiya, sorry my fault, they have added the PPI to the amount of credit.

The PPI, which we were forced to have, according to the T&C's of the policy covers for 5 years, and the premium of £1620.37 has been added to the amount of credit. The term of this second charge is for 15 years, so we would have to take out 3 rolling policies. We certainly were not aware of this until a couple of days ago.

So the £1620.37 premium, @1.2% p/mth, over the 5 year period of the PPI policy = ? Then you would need 3 of these policies to cover the term of the agreement....ouch...ouch....ouch.

Thats a lot of money for a policy that would not payout anyway.

 

Any ideas?

[rippedoffagain]

Research the acceptance fee bit, I am sure that this is added to the total amount payable, but not to the loan.