Royal Bank of Scotland - PPI and Horendous interset rate

[davidp1948]

In February 2004 I took out a loan for £5,000 with Direct Line. I was told that my credit history was poor therefore they would load the interest rate. Furthermore I would be required to take out their PPI.
I needed the money quickly and had an acceptance from them so didn't look elsewhere. So how much do you think I'm paying?
The loan was £5000·00
The PPI was £1526·70
Total loan £6526·70
Interest was £3045·10
Total repayable £9571·80 at a flat rate of interest of 18·287%. Earlier today I looked up the Bank of England base rate for February 2004 and it was 4% !!!

I defaulted on the loan earlier in the year and now have a County Court judgement against me with an order to pay the arears plus costs which total £9K+. Despite having paid almost £2·5K in monthly charges before default.

I am trying to get the judgement set aside because I believe clause 8 of my loan agreement (is an unfair clause under the current consumer legislation) states that I have to pay the full outstanding amount plus charges and costs in the event of a default. This in effect represents a penalty charge which is unrecoverable in common law.

My questions are, and I'm sorry it took so long to get to them, are;

• Do I have a case for mis-selling against Direct Line as they charged me so much interest at the time that interest rates were low?
• Did they mis sell the PPI that they insisted I took from them beacause it was so much more expensive than a company called "Security First" who's current rates are £2·15 per £100 of monthly premium. Meaning their total charge for PPI would have been closer to £200 compared to Direct Line's £1526?
• Surely these Companies have a duty of care towards their customers and this company failed to excercise its duty of care when dealing with me?

I would welcome the thoughts and advice of fellow members, thank you.

[mollington]

In short if you were aware of cost involved no.

some shoes are more expensive than others but that doesnt give the right t sue after buying them does it

However if you were told you had to have the cover that is a mis sale and you should go with that, because it has always been what we call non complaint to inform a customer that the cover is mandatory.

[reidnet]

Even though you have bad credit history they CANNOT make PPI a condition of the loan. PPI is or should always be Optional though i know they all use this as a way of selling you a very expensive product, and in some cases the seller can pocket up to 65% of the policy cost as way of Commision / Bonus. No wonder the amount of complaints about PPI is escalating.. Its Time to Fight Back...

Ian

[paulwlton]

I am also applying for a loan judgement to be set-aside in the new year due to ppi miss-selling. This will be used in court amongst other things.

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