PPI Compensation calculation

Jeffs_2 · 11 January 2010 at 2:59PM

Hi
Would anyone on the site be able to work out for me the compensation I would be due on a mis sold PPI if I gave the dates figures etc. We won our case with the ombudsman however company in default so our case is now with the fscs, but is looking hopeful. We know it could take some time but we need to know what the amount would be as of today if we were compensated today.
Many thanks to anyone who can help.

robbedofmymoney · 11 January 2010 at 3:40PM

i will give it a go,
i have made a couple of template spreadsheets to autocalc to assist me.
i can change the parameters to your numbers. it is only a guide though so don't hold me to it.

if it was for a loan, i will need,

load amount
PPI amount
interest rate
was it single premium or not
period of repayments
monthly repayment amount

if it is for a credit card this is more difficult as the parameters are constantly changing, ie interest rates change, values and ppi payments change, this can be done but a lot of information is needed and i feel i should not ask you for this.

however, if you have your average balance a rough guide for credit card ppi reclaim values are already on this website.

cheers

Jeffs_2 · 11 January 2010 at 4:04PM

Hi okay here goes.
Original Cash Loan 23rd June 2006 was 55,000.
PPI added was 13,469.50. Total 68469.50.

Monthly payment was 429.47 plus PPI 105.17. Total 534.64.

Cancelled PPI in June 2007, so there were 12 payments made.
They calculated that my refund was £3238.02.

This was a secured loan with a single payment protection policy.
The interest as time of taking out loan was 8.4%. It never went below and at one point went to 10%.

Ombudsman agreed it was mis sold, but now have to fill all forms out with fscs as company in default.

Thanks.

Jeffs_2 · 11 January 2010 at 4:06PM

By the way still have the original loan with the company.

robbedofmymoney · 11 January 2010 at 4:10PM

over what period is the load re-payable
cheers

Jeffs_2 · 11 January 2010 at 4:14PM

It was for 25 years.

robbedofmymoney · 11 January 2010 at 4:45PM

here goes my effort, but as i say do not hold me to the numbers.

I am assuming your loan was recalculated when you cancelled the PPI policy, and your payments were reduced.

if you would have kept the PPI you would have pain an additional £20,700 in interest over the 25 year term of the loan just for having this cover, i think this demonstrates how unfair this type of insurance premium is.

as you cancelled the PPI after 1 year the additional interest paid on the PPI premium would have equated to £1125, this is calculated by, working out what the interest portion of the repayments would have been with and without the PPI and then deducting one from the other.

you were charged a total premium of £13,469.50, and have been refunded £3238.02

so using the figures we now have

£13,469.50 - £3238.02 + £1125 = £11,356.52 + your 8% as you have been deprived of this money.

this would be my best estimate on how much you should get back based on the numbers given. please only use this as a guide.

cheers

Jeffs_2 · 11 January 2010 at 6:27PM

Hi
Many thanks for your time, but just wondered if this estimate includes the payments we had already made over the first twelve months, or do we have them refunded to us.
ie. £105.17 is the amount we paid x 12.

Also one figure the ombudsman did give us was that if the policy ran to its total term, in fact the total cost to us would have been £31,551. I don't know how they work it out, but like you say, absolute rip off especially as I am self employed and it did not even apply to me.

Thanks

robbedofmymoney · 11 January 2010 at 7:09PM

happy to help any time,

the calculation does take into account the payments you have previously made,

i have carried out a similar exercise to what the banks would do.

ie putting the loan in the same position as if the PPI was not added in the first place.

cheers

di3004 · 11 January 2010 at 7:47PM

Brilliant work robbedofmymoney, we know where to find you lol.:D:T:T

marshallka · 12 January 2010 at 10:14AM

Jeffs wrote: »

Hi okay here goes.
Original Cash Loan 23rd June 2006 was 55,000.
PPI added was 13,469.50. Total 68469.50.

Monthly payment was 429.47 plus PPI 105.17. Total 534.64.

Cancelled PPI in June 2007, so there were 12 payments made.
They calculated that my refund was £3238.02.

This was a secured loan with a single payment protection policy.
The interest as time of taking out loan was 8.4%. It never went below and at one point went to 10%.

Ombudsman agreed it was mis sold, but now have to fill all forms out with fscs as company in default.

Thanks.

Hi, if this was missold and you cancelled the PPI after 12 months then I work out it would be 12 x 105.17 = £1262.04 and then was the loan redone without the PPI and what was the settlement of the old loan? It would be impossible to work this out without a settlement figure (or how they actually cancelled the PPI????) for how much of the original premium was rebated back to your loan.

Just to be sure here..... the £3238.02 refund.... is this what they are saying you are now due back for the missale.

If its a case of this was the amount of the rebate when you cancelled (again do not completely understand whether its this or the above) then again you would need to find out the actual amount of the interest that was also rebated against your loan when you cancelled for a true figure.

The total amount of the PPI over the term of your loan would have been £31551.00(13469.50 + interest on the PPI £18080.50). You made 12 repayments totalling £1262.04 and then cancelled. You were then given a rebate (????????) of £3238.02. Is this correct so far? Your PPI ELEMENT is 19.67%.

Just clarifying the rebate issue here and also what happened to your loan when you cancelled the PPI? Did your repayments reduce or the term of the loan etc?

PPI Compensation calculation

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