PPI Reclaiming discussion Part III

di3004

Damn, I was only looking through those calculations the other day regarding Nemo.....and now cannot find them.......:o .

Although this is done and dusted on the 2nd one I found some written information on how Nemo had worked this out here:

November 2005 - Secured loan of £43,000 7.9Apr
your broker also sold you payment protection insurance providing:
life, accident and sickness and unemployment cover for Mr XXXXX

The premium for insurance was- £8,492 and was funded by the way of Nemo, taking your borrowing with us to - £51,492.50

How early settlements are calculated

If you wish to settle your loan early, as you did when you considered a further advance.
Nemo will do the following:

Look at the balance on the account and work to an assumed settlement date.

Add the interest in accordance with clause 4.2 of your credit agreement (6months interest to this instance).

The balance on your account is the balance on the total loan, not just the cash loan as your insurance premium has also been borrowed from us.

If your cancelling your insurance at the same time then the rebate from Norwich union will be deducted from the loan balance before arriving at a settlement figure, leaving an amount which needs to be settled either from your own resources or through whatever refinancing arrangement you are putting in place.
As the insurance rebate is not proportionate, the figure on 21 April 2006, when you first spoke to XXXXXXXX in a recorded call, was around £51,000 .
You can see how high the figure is compared with the cash loan of £43,000.



Loan advance

July 2006
A loan agreement £55,000 cash loan with PPI loan of £10,852.50, making a total loan of £65,862.50 at an APR of 8.4% over a period of 300 months at a monthly repayment of £514.29.

Settlement
In your case the settlement figure based on your loan balance plus accrued interest was £51,203.68.

Normally, if the insurance is being cancelled, that would be paid in 2 parts; firstly there would be an insurance rebate from Norwich Union (based on their normal rebate formula) which in your case would have been £1,258.26 leaving a balance to settled in cash (or via refinance arrangement) of £49,945.42.

However because Nemo enhanced the insurance rebate to which you would normally have been entitled to £7,644,43, this left a balance
£51,203.68 - £7,644.43) of £43,559.25

Nemo gave you the monetary benefit, in form of a reduced settlement figure, of £6,386.17
(£7,644.43 - £1,258.26).

Settlement on your original loan was quoted as £51,203.68, before taking any value for the insurance rebate into account.
.............................................................................................................................

di3004

marshallka wrote: »

Di, i think its a credit card here and I think snowymalone wants to just cancel it and being a credit card there are no penalties I would not have thought... .

Why would the SAR come in handy for cancelling...???

Yes your right, I should have thought, there is a difference to a loan lol.:o

di3004

snowymalone wrote: »

It's an MBNA card, so hopefully the loan regs won't come into it. Hopefully!

Thanks for all the advice, di3004. I'll watch this space and keep you all updated

Hi hun I got carried away lol, sorry, me getting confused for loans and you should not be penalised for cancelling the insurance on your credit card.

Good luck hun and apologies.:o x

marshallka

di3004 wrote: »

Damn, I was only looking through those calculations the other day regarding Nemo.....and now cannot find them.......:o .

Although this is done and dusted on the 2nd one I found some written information on how Nemo had worked this out here:

November 2005 - Secured loan of £43,000 7.9Apr
your broker also sold you payment protection insurance providing:
life, accident and sickness and unemployment cover for Mr XXXXX

The premium for insurance was- £8,492 and was funded by the way of Nemo, taking your borrowing with us to - £51,492.50

How early settlements are calculated

If you wish to settle your loan early, as you did when you considered a further advance.
Nemo will do the following:

Look at the balance on the account and work to an assumed settlement date.

Add the interest in accordance with clause 4.2 of your credit agreement (6months interest to this instance).

The balance on your account is the balance on the total loan, not just the cash loan as your insurance premium has also been borrowed from us.

If your cancelling your insurance at the same time then the rebate from Norwich union will be deducted from the loan balance before arriving at a settlement figure, leaving an amount which needs to be settled either from your own resources or through whatever refinancing arrangement you are putting in place.
As the insurance rebate is not proportionate, the figure on 21 April 2006, when you first spoke to XXXXXXXX in a recorded call, was around £51,000 .
You can see how high the figure is compared with the cash loan of £43,000.



Loan advance

July 2006
A loan agreement £55,000 cash loan with PPI loan of £10,852.50, making a total loan of £65,862.50 at an APR of 8.4% over a period of 300 months at a monthly repayment of £514.29.

Settlement
In your case the settlement figure based on your loan balance plus accrued interest was £51,203.68.

Normally, if the insurance is being cancelled, that would be paid in 2 parts; firstly there would be an insurance rebate from Norwich Union (based on their normal rebate formula) which in your case would have been £1,258.26 leaving a balance to settled in cash (or via refinance arrangement) of £49,945.42.

However because Nemo enhanced the insurance rebate to which you would normally have been entitled to £7,644,43, this left a balance
£51,203.68 - £7,644.43) of £43,559.25

Nemo gave you the monetary benefit, in form of a reduced settlement figure, of £6,386.17
(£7,644.43 - £1,258.26).

Settlement on your original loan was quoted as £51,203.68, before taking any value for the insurance rebate into account.
.............................................................................................................................

So you got this one back didn't you???

Didn't you get back £13K plus on this...

di3004

marshallka wrote: »

So you got this one back didn't you???

Didn't you get back £13K plus on this...

Yes on the 2006 one is the one won through the FOS, it was just under £13K with interest and £250 compo included for distress which the ombudsman requested on our behalf.;)

Now the top one is the one being dealt with through both the liquidators and fscs now and I just sent them what I have in the breakdown that was posted on here a while ago, just to be on the safe side.;)

marshallka

di3004 wrote: »

Yes on the 2006 one is the one won through the FOS, it was just under £13K with interest and £250 compo included for distress which the ombudsman requested on our behalf.;)

Now the top one is the one being dealt with through both the liquidators and fscs now and I just sent them what I have in the breakdown that was posted on here a while ago, just to be on the safe side.;)

What breakdown was that DI..??

di3004

marshallka wrote: »

What breakdown was that DI..??

That is what I have been looking for the actual paperwork for that, as it explains it all, will take another look.;)

oh hang on which one, the first or 2nd one lol?:D

marshallka

di3004 wrote: »

That is what I have been looking for the actual paperwork for that, as it explains it all, will take another look.;)

oh hang on which one, the first or 2nd one lol?:D

Just found a bit of my calculations...

PPI element 16.4%
370.53 x 16.4% = 60.76 x 9 = 546.90
8492.00 (total PPI) - 546.90 (repayments of PPI x 9) - 7644.43 (rebate of PPI when you settled = 300.67

300.67 + 546.90 = £847.57 total PPI to cover 9 months on a loan 43K (equals £94.17 per month for the PPI)


Will look for the rest in a min...;)

di3004

Right this is what I have found about the 2nd one.;)

The amount has been calculated as the portion of the settlement figure used to settle the loan September 2007, plus the monthly repayments you made as result of paying for the insurance loan with interest.

Total redress is therefore £12,207,207.51

From this amount that we have deducted a rebate of £1,998.32 refunded to your account when you cancelled the ppi on 24 Sept 2006.
This leaves a redress figure of £10,209.19 to which we added interest of £286.42 and a further £250 distress and inconvenience payment as directed by the ombudsman.

In addition in order to finalise the payment we have added interest on the distress and inconvenience payment from the date of the ombudsman's decision on 12 Dec 2007 to date.
This totalled £1.70 and this has been rounded up to £2.

Cheque date:11th Jan 2008
The total payable is therefore the sum of:
£10,209.19
£286.42
£250
£2.

When receiving that amount the FOS got in touch to say that Nemo owed further redress in this refund, which was another £2.024.71, so we received that cheque on the 6th Feb 2008.

So this totalled £12772.32.
..................................................................................................

I do have the breakdown of this somewhere, if I find it I will post it.;)

marshallka

marshallka wrote: »

Just found a bit of my calculations...

PPI element 16.4%
370.53 x 16.4% = 60.76 x 9 = 546.90
8492.00 (total PPI) - 546.90 (repayments of PPI x 9) - 7644.43 (rebate of PPI when you settled = 300.67

300.67 + 546.90 = £847.57 total PPI to cover 9 months on a loan 43K (equals £94.17 per month for the PPI)


Will look for the rest in a min...;)

Di, this was using Tiggraes method of calculations and mine were way out with the FOS using this and I got far less back than this way.

How FOS works it is that they take the actual loan and work it as if you never had the PPI and what the settlement would have been and then they work it with the PPI and what you actually settled and then take one from the other. I will do your calculations this way...

Was this one settled using rule of 78??? It was if I am thinking right..?