I got 2 loans within 6 months of each other 3 years ago from a well known loan company. The first loan was for £**,*** which they added the interest and ppi (not being told i could find it else where and told i wouldn't get loan unless i got ppi) which made the loan £**,*** ,6 months later i got another loan for £*,*** they added this ontop of the previous balance then added interest and ppi onto this aswell which then became £**,***. My actual question is : is it legal to add ppi and interest ontop of ppi and interset or should they of worked out what i actualy owed from first loan then added the second onto this and recalculated the interest and ppi on the total amount borrowed ? As i have been recently informed it is not the correct way of doing it and i could get my loan quashed and any payments made refunded with interest as it is classed as an illegal loan ! please can anyone who works within this department (either loan advisor or someone who deals with loans) please advise me as to what is correct and what isn't. thankyou

I had a similar issue recently with a loan that I originally took out for a car for my son, that was subsequentally upgraded when we wanted some money to spend on improving our kitchen. It was12 months later that my brother (who works in legal finance) pointed out that I had a very good case to be refunded some money. Although he didn't prsue this for me any further due to the distance apart we live, I did a bit of searching around for companies who specialise in pursuing a case on behalf of people like myself. After speaking to the company I chose to handle this for me, I can say that my brother was right, I do have a chance to get some money back and suggest you look into this whether you do it yourself of through a financial claim company.

Thankyou for your reply B_Singh, i have contacted a company who is now dealing with this matter and hopefully will get a good reslt. Thanks for reading and taking the time to reply.