Ppi

[MadhousMom59]

I know someone who had taken a credit card with mbna.. He used the card for £900.00. After I think 9-10 years he owes over that amount now 10 years later. I made him apply but he only got about £200. They take £45 per month. And have done there about .for 10 years.???

They have had £5.000 by now. It's disgusting. but people are vulnerable.

I had a credit card once which had £15k on it, and even though I was paying about £250 a month, over 4 years I’d only paid off £900. I was devastated, and didn’t understand (like I do now!) about interest etc. I’ve now paid it off, but others in the same position will struggle.

This is a basic feature of any credit card. They add interest every month. If you don't pay enough to cover the interest the amount you owe will go up. Their interest rates are high but not as high as some lenders. Using a credit card for a long term loan (as your friend has done) is not a good idea. That is quite separate from PPI.

They take £45 a month? He can pay more. Is he a vulnerable person? Why did you make him apply? How did he spend £900 of his limit was £200?

Sorry I may be confused here, what's the situation with PPI? Is he hoping to claim PPI? that's a separate issue, but the repayments he is making need to be adjusted so the debt can decrease.

This has got nothing to do with PPI.

I think you're complaining about compound interest - have a look at the essentials here:

www.moneyadviceservice.org.uk/en/articles/interest-rates-explained

The £45 a month is the repayment with interest. It's not just ppi.

He won't get the interest back on the £900, just the ppi amount.