How FOS Calculate Refunds

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  • fsaxom
    fsaxom Posts: 43 Forumite
    hi dilus,
    thanks for your time to work this out, now i know what rough amount to expect plus im entitled to compensation so all in all win win situation.
    thank you all kindly
    fiona
  • 33_the_foot
    33_the_foot Posts: 4 Newbie
    Got one of my refund calcs letter in today....

    Refund of premiums=£411.00
    early settlement difference=£209.05
    interest at 8%=£455.84

    total=£1,075.89

    I was just wondering from other posts is interest added to the refund of premiums i.e the rate on the loan taken out then the 8% added also many thanks in advance....
  • dilus
    dilus Posts: 1,046 Forumite
    33_the_foot wrote: »
    Got one of my refund calcs letter in today....

    Refund of premiums=£411.00
    early settlement difference=£209.05
    interest at 8%=£455.84

    total=£1,075.89

    I was just wondering from other posts is interest added to the refund of premiums i.e the rate on the loan taken out then the 8% added also many thanks in advance....

    If the PPI was front loaded then yes they should pay back the APR % rate as well as the 8%, otherwise they are not "putting you back to a position you would have been in without the PPI being added"
    If my claim is upheld and they don't pay the APR % rate as well as the 8% I will be questioning it very strongly ;)
    Successes
    Sainsbury's/BOS £6,400 Paid :)
    MBNA £3,600 Paid :)
  • amersall
    amersall Posts: 17,004 Forumite
    First Post Combo Breaker First Anniversary
    33_the_foot wrote: »
    Got one of my refund calcs letter in today....

    Refund of premiums=£411.00
    early settlement difference=£209.05
    interest at 8%=£455.84

    total=£1,075.89

    I was just wondering from other posts is interest added to the refund of premiums i.e the rate on the loan taken out then the 8% added also many thanks in advance....
    Hi there,the ppi refund of premiums will include the interest on the ppi.
    With a loan,the ppi including interest over the term will be £xx a month,if you have paid 30 loan payments,then you have paid 30 x £xx in ppi and interest and this is the payment you get back for each month and then the 8%.
  • 33_the_foot
    33_the_foot Posts: 4 Newbie
    amersall wrote: »
    Hi there,the ppi refund of premiums will include the interest on the ppi.
    With a loan,the ppi including interest over the term will be £xx a month,if you have paid 30 loan payments,then you have paid 30 x £xx in ppi and interest and this is the payment you get back for each month and then the 8%.
    Thanks amersall&dilus iam expecting a few more letters in the next few days,once again a MASSIVE thankyou to everyone on this site the CMC'S/banks must hate you but they can go forth & multiply...:money:
  • antonette254
    antonette254 Posts: 160 Forumite
    First Anniversary First Post Combo Breaker
    Hi all could someone have a look at the figures that Nat West have sent me & confirm that they are correct?
    refund of premiums from 24.8.01 - 27.9.07 - £1077.52
    compound interest on premiums based on interest charged on CC £ 607.41
    gross interest @ FOS rate £ .19
    less tax @ 20% £ .04

    As your complaint has taken more than 8 weeks to resolve int @ 8% simple on the gross offer amount £1685.12 has been added btween 4.10.11 - 25.10.11 £7.76
    Less tax @ 20% £1.55
    Net interest £6.21

    Total Offer £1691.29
    Thanx in advance for your time & help.
  • fuellg
    fuellg Posts: 3 Newbie
    Hi,

    I'm new to the forum and like many I'm looking for the help of the experts :)

    I have recently submitted a PPI claim to Santander. Today I received an offer of refund for £2265.94. I was hoping if I posted all the relevant information someone could tell me if this was a good figure to accept.

    fyi all loans are with the same bank and run one after the other. all details below were provided to me by the bank.

    Loan 1
    Loan Term: 36
    Monthly Cost of Loan: £155.91
    First Payment Date: Dec-05
    PPI Premium: £21.69
    Payments Made: 7 (before taking out loan 2)
    Rebate Received: £440.56
    Rebate Shortfall into Loan 2: £188.45

    Loan 2
    APR: 11.94%
    Loan Term: 36
    Monthly Cost of Loan: £172.78
    First Payment Date: Aug-06
    PPI Premium: £26.43
    Payments Made: 14
    Early Settlement Figure: £3788.27
    Rebate Received: £298.59
    Rebate Shortfall into Loan 3 from Loan 2: £282.87
    Rebate Shortfall into Loan 3 from Loan 1: £117.89

    Loan 3
    APR: 11.84%
    Loan Term: 36
    Monthly Cost of Loan: £394.24
    First Payment Date: Nov-07
    PPI Premium: £19.53
    Payments Made: 36
    Early Settlement Figure: £0.00
    Rebate Received: £0.00
    Date Loan Closed: Oct-10


    Finally the latter states that the interest is calculated at a rate of 8% simple per annum.

    Please do let me know if any info is missing for a response to be posted.

    Thanks,
    Fuellg.
  • fuellg
    fuellg Posts: 3 Newbie
    bumping it up in the hope someone will be able to help! Thanks..
  • amersall
    amersall Posts: 17,004 Forumite
    First Post Combo Breaker First Anniversary
    edited 9 November 2011 at 6:37PM
    fuellg wrote: »
    Hi,

    I'm new to the forum and like many I'm looking for the help of the experts :)

    I have recently submitted a PPI claim to Santander. Today I received an offer of refund for £2265.94. I was hoping if I posted all the relevant information someone could tell me if this was a good figure to accept.

    fyi all loans are with the same bank and run one after the other. all details below were provided to me by the bank.

    Loan 1
    Loan Term: 36
    Monthly Cost of Loan: £155.91
    First Payment Date: Dec-05
    PPI Premium: £21.69
    Payments Made: 7 (before taking out loan 2)
    Rebate Received: £440.56
    http://www.moneysavingexpert.com/reclaim/bank-charges#step2
    Put the 7 payments you made,the date month and year of these into the calculator and it will total the ppi and the 8% that you should get for the redress,take off the rebate figure and this is the amount of redress for this loan.


     Rebate Shortfall into Loan 2: £188.45

    Loan 2
    APR: 11.94%
    Loan Term: 36
    Monthly Cost of Loan: £172.78
    First Payment Date: Aug-06
    PPI Premium: £26.43
    Payments Made: 14
    Early Settlement Figure: £3788.27
    Rebate Received: £298.59take this figure off this loan as above.
    Rebate Shortfall into Loan 3 from Loan 2: £282.87
    Rebate Shortfall into Loan 3 from Loan 1: £117.89

    Loan 3
    APR: 11.84%
    Loan Term: 36
    Monthly Cost of Loan: £394.24
    First Payment Date: Nov-07
    PPI Premium: £19.53
    Payments Made: 36
    Early Settlement Figure: £0.00
    Rebate Received: £0.00
    Date Loan Closed: Oct-10

    Do the same with this loan and you will have those totals.


    Finally the latter states that the interest is calculated at a rate of 8% simple per annum.

    Please do let me know if any info is missing for a response to be posted.

    Thanks,
    Fuellg.
    You have paid,not including the 8% £1224.90 of ppi,minus the rebates they gave you = back to you £485.75
    when you go on the bank charge calculator,your redress they have offered should be the total you get.

    The shortfall amounts were £589.21, so add this to the £485.57 gives you £1074.78, i assume the rest you got back was the 8%.

    Sorry i cannot help you more with this,maths is not my strong point :D the maths wizards have gone awol,hopefully someone will tell you what you should be getting,but that is how it is worked out the way i would do it.

    Not sure about the shortfall amounts,dont know if they take these off or give you them back,as this was ppi and you should not have paid it.
    Looks to me you have full redress.
  • fuellg
    fuellg Posts: 3 Newbie
    Thanks amersall thats a great help.
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