Help! PPI calculation wrong I think!
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simmo2002
Posts: 17 Forumite
Hi,
I have just had a letter from RBS for my NatWest Creditcard. I recently claimed for Plevin commission. However I think the statutory interest is wrong: the calculation is..
Refund of commission over 50% charged on your premiums paid between 06 Nov 1993 to 06 Jul 2006 £892.21
Refund of erroneous over limit fees paid between 06 Nov 1993 to 06 Jul 2006 £156.00
Compound interest on commission over 50% and erroneous over limit fees, based on interest rate charged on credit card £1,937.95.
TOTAL: £2,987.16
Gross statutory interest (8%) £99.54
Less income tax (20%) -£10.91
Net statutory interest £79.63
Total offer £3065.79
Am I wrong in thinking that the statutory interest should be 8% per year on £2,986.16 since July 2006? If so then should it not be ~£3800 interest? Making the offer about £6800?
Or am I completely wrong?
You help is appreciated.
Thank you in advance!
I have just had a letter from RBS for my NatWest Creditcard. I recently claimed for Plevin commission. However I think the statutory interest is wrong: the calculation is..
Refund of commission over 50% charged on your premiums paid between 06 Nov 1993 to 06 Jul 2006 £892.21
Refund of erroneous over limit fees paid between 06 Nov 1993 to 06 Jul 2006 £156.00
Compound interest on commission over 50% and erroneous over limit fees, based on interest rate charged on credit card £1,937.95.
TOTAL: £2,987.16
Gross statutory interest (8%) £99.54
Less income tax (20%) -£10.91
Net statutory interest £79.63
Total offer £3065.79
Am I wrong in thinking that the statutory interest should be 8% per year on £2,986.16 since July 2006? If so then should it not be ~£3800 interest? Making the offer about £6800?
Or am I completely wrong?
You help is appreciated.
Thank you in advance!
0
Comments
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Need to look up statutory interest rate. I think it was 8% until at least 2009. At some point it will have been reviewed after Bank of England rate dropped to 0.5% Is it now 4% or did the courts not catch up with this yet?0
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Hi, the main covering letter states that the interest is 8% not 4%. Just can't work out why the interest is calculated at ~£90 only!!!0
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