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PPI Compensation calculation
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# 1
Jeffs
Old 11-01-2010, 1:59 PM
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Default PPI Compensation calculation

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.
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# 2
robbedofmymoney
Old 11-01-2010, 2:40 PM
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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

Last edited by robbedofmymoney; 11-01-2010 at 2:46 PM.
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# 3
Jeffs
Old 11-01-2010, 3:04 PM
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Default Calculation Figures for PPI

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.
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# 4
Jeffs
Old 11-01-2010, 3:06 PM
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Default Calculations continued

By the way still have the original loan with the company.
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# 5
robbedofmymoney
Old 11-01-2010, 3:10 PM
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over what period is the load re-payable
cheers
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# 6
Jeffs
Old 11-01-2010, 3:14 PM
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Default Compensation

It was for 25 years.
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# 7
robbedofmymoney
Old 11-01-2010, 3:45 PM
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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
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# 8
Jeffs
Old 11-01-2010, 5:27 PM
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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
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# 9
robbedofmymoney
Old 11-01-2010, 6:09 PM
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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
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# 10
di3004
Old 11-01-2010, 6:47 PM
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Brilliant work robbedofmymoney, we know where to find you lol.
The one and only "Dizzy Di"
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# 11
marshallka
Old 12-01-2010, 9:14 AM
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Quote:
Originally Posted by Jeffs View Post
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. :confused:

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?

Last edited by marshallka; 12-01-2010 at 9:25 AM.
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# 12
GLD
Old 12-01-2010, 9:29 AM
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Default

Hi guys, been a while but since Loans co uk agreed that the policy was missold in December we have just been waiting for the settlement figure which we received yesterday a massive £25k.
However after looking at it we asked the question whether the 8% that we had requested in our original letter had been added. Credit to the bloke at loans, he came back within a few hours and advised that it hadnt and we just had to reject the offer and he would then recalculate our payment, no ifs or buts.
So just make sure when you get your offer that they have actually included the 8% as they may hope that just sending a total figure no one will question it.

Also got £300 back from PPI on a Virgin Credit Card and have another £300 in the pipeline.

All of this is thanks to martin and his amazing site and you amazing people who give up your time to help people out.

Thank you all, for all your help

Happy New Year!!!
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# 13
marshallka
Old 12-01-2010, 9:43 AM
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Default

Quote:
Originally Posted by GLD View Post
Hi guys, been a while but since Loans co uk agreed that the policy was missold in December we have just been waiting for the settlement figure which we received yesterday a massive £25k.
However after looking at it we asked the question whether the 8% that we had requested in our original letter had been added. Credit to the bloke at loans, he came back within a few hours and advised that it hadnt and we just had to reject the offer and he would then recalculate our payment, no ifs or buts.
So just make sure when you get your offer that they have actually included the 8% as they may hope that just sending a total figure no one will question it.

Also got £300 back from PPI on a Virgin Credit Card and have another £300 in the pipeline.

All of this is thanks to martin and his amazing site and you amazing people who give up your time to help people out.

Thank you all, for all your help

Happy New Year!!!
Hi if you asked for the 8% statutory interest then they mostly pay it out and calculate it on top of the redress. They do this by calculating what you are due back and then if its paid "simple" interest (which is what most do) they then add 8% from the date of settlement to todays date.

If the loan is still existing then they should work out each PPI payment (at the date each one is paid) and then add 8% on top to todays date. You could ask them for a breakdown of your redress to see if this is the case.
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# 14
GLD
Old 12-01-2010, 9:49 AM
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Quote:
Originally Posted by marshallka View Post
Hi if you asked for the 8% statutory interest then they mostly pay it out and calculate it on top of the redress. They do this by calculating what you are due back and then if its paid "simple" interest (which is what most do) they then add 8% from the date of settlement to todays date.

If the loan is still existing then they should work out each PPI payment (at the date each one is paid) and then add 8% on top to todays date. You could ask them for a breakdown of your redress to see if this is the case.
Hi Marshallka

I got an email back first thing this morning and they have agreed to send me a breakdown with the offer which they expect to be this afternoon or tomorrow at the latest. thank you
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# 15
skinny-on-the-inside
Old 13-01-2010, 7:01 PM
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Hi GLD could I ask a question is it loans.co.uk broker you have just claimed money back from as i was sold a single premium policy in 2004 on a secured loan of 15k and have been trying to contact them to claim misselling however they appear to have went into liquidation and the loan company won't hear anything from me and say it's loans.co.uk's issue any help would be appreciated
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# 16
di3004
Old 13-01-2010, 7:55 PM
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Quote:
Originally Posted by skinny-on-the-inside View Post
Hi GLD could I ask a question is it loans.co.uk broker you have just claimed money back from as i was sold a single premium policy in 2004 on a secured loan of 15k and have been trying to contact them to claim misselling however they appear to have went into liquidation and the loan company won't hear anything from me and say it's loans.co.uk's issue any help would be appreciated
Hi there

I assumed loans.co.uk were now being dealt with by the FSCS, Financial service compensation scheme (FSCS), you can always check with these here:
http://www.fscs.org.uk/contacts/
If they are listed with these, they will arrange to send you a claim form through the post, good luck please let us know how you get on.
The one and only "Dizzy Di"
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# 17
marshallka
Old 13-01-2010, 8:13 PM
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Quote:
Originally Posted by skinny-on-the-inside View Post
Hi GLD could I ask a question is it loans.co.uk broker you have just claimed money back from as i was sold a single premium policy in 2004 on a secured loan of 15k and have been trying to contact them to claim misselling however they appear to have went into liquidation and the loan company won't hear anything from me and say it's loans.co.uk's issue any help would be appreciated
Hi, if they have gone under and your loan and PPI were sold before 14th January, 2005 (you say it was sold in 2004) then I am afraid that the FSCS cannot help. They can only help for policies sold after 14th january, 2005. You could however ask FOS about chasing the insurer for the missale. I know that FOS are trying to make underwriters/insurers responsible. You would have to write a complaint though again and go through the same procedure as an ordinary complaint and then FOS can handle these. I would first check with them and see what they say.

Extra good luck.
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# 18
di3004
Old 13-01-2010, 8:14 PM
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Good thinking Marshallka with the date which I missed.

I agree with Marshallka, it may be the case you will get more joy with going the insurer direction instead.
The one and only "Dizzy Di"
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# 19
GLD
Old 14-01-2010, 11:08 AM
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Quote:
Originally Posted by skinny-on-the-inside View Post
Hi GLD could I ask a question is it loans.co.uk broker you have just claimed money back from as i was sold a single premium policy in 2004 on a secured loan of 15k and have been trying to contact them to claim misselling however they appear to have went into liquidation and the loan company won't hear anything from me and say it's loans.co.uk's issue any help would be appreciated
Hi there, I am actually dealing with bank of America who seem to have taken over from Loans.co.uk, or atleast have a complaints department set up. As others have pointed out the dates maybe an issue but you could send your letter to Mark williams, Loans.co.uk, Chester Business Park, Wrexham Road, Chester CH4 9FB. Send the standard letter from MSE, which is the one I used and see what happen, its worth the cost of a stamp and they have been really helpful, I just hope the dates dont cause too much of an issue. Hope this helps
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