How FOS Calculate Refunds

hopefulshell07 wrote: »

Hi all I have a quick question I have posted on part 4 of the PPI reclaim thread http://forums.moneysavingexpert.com/showthread.html?t=1460775&page=487

And I realised after reading this thread that the bank have not taken into account the fact that all of my loans were refinanced with them and each loan should be restructured to show the new loan amount without the PPI from the previous loan. I hope I have read this correctly and is that what they should have done?

As I understand here if you have a refinanced loan then you would get ALL the PPI back that was charged for the first one (before refinancing which would include whatever was carried over into the next loan opening balance as they would work out what the settlement WOULD have been had the PPI not been applied). This would then be how it works for the other loans too but I know that Maxdp put something on the how FOS works out refunds about it but really do not understand. I would think that each loan would be treated the same as a standalone as they would or should look at what the settlement WOULD have been had the PPI not been applied.

foxyRav wrote: »

Also big thans from me maxdp, for the post.

First of all, I would like to say that this forum is great. Power to the people. I randomly came across this forum and remembered Egg selling me a loan and forcing me to take out PPI. Wrote them a letter 2 weeks ago and they have made an offer of ~4K and have offered to cancel the policy and restructure the loan.

This includes : PPI paid on the loan - PPI premium refund taken on the loan + refund of interest charged on PPI at contractual loan rate.

Question
Based on maxdp`s post, should I also be entitled to the 8 percent statutory interest ?

I rang egg who have advised that it is not their policy to pay this, and am therefore wondering if I should just take their offer or write them another letter or go to the FO.

Thanks in advance.

if they find in your favour they should repay 8 % simple interest to you, i beleive Egg do not offer this and its a risk they take, assuming people will not go to the fos.

if you do go to the fos this could take a long time,

you need to bear in mind that on credit card refunds the 8% simple is only applicable if your account would have gone into credit after the ppi has been refunded (they restructure your account without the ppi going back 6 years and then if your account is in credit for any of this time you will get 8% on this amount only) this is inline with the FOS

so this 8% on the credit card ppi may not amount to a great deal unless you have fully paid up on a number of occasions.

its really a decision you need to make as to wether to accept or go to the fos and persue the additional 8%

i think its vague at best, but this is how i interpate what the FOS guidlines are, i'm not sure when these guidelines were published,
it would be worth foxyrav giving the fos a call for clarification before making a decision on wether or not to accept the offer, and how the 8% simple would be applied

better to be safe than sorry

im lost to be honest i paid 571 i think up front as part of the loan of 2000 total credit 2571.65 to which i am paying 168.00 for 48 months last loan payment will be aug 1st 2010 total repayment will be 4571.65 (yea i know ouch but its welcome finance but it was needed at the time) i dont really get how to work out what i should get as a refund is it simply 571.65 +8% interest or am i really missing the point

can anyone please help