PPI Reclaiming Discussion part 4

Turboman

scoodies wrote: »

Hi Turbo, please find below the wording of the letter I have received from Northern Rock:

"I cannot find any evidence to suggest we mis-sold you PPI however, we do not want to be in dispute with you and I agree to refund your PPI premiums. You settled the loan before it ran its full term and made your first payment 2 November 2006 and the last on 4 February 2008 respectively. The refund of premiums and interest is therefore not equal to the monthly premium paid (£29.42) multiplied by the number of months the loan has been in force (16). This is because we apportion more of the premium in the early part of the policy term when we bear more of the risk.
We have already given you an insurance rebate of £2,011.68 and you are now due a refund of premiums and interest of £904.05. In addition we will pay 8% interest calculated from the date you made each payment, totalling £52.76"

I think the figures are probably right, but would like some advice please


Thank you so much once again for looking at this :A

I can't follow the audit trail on this I'm afraid. What we have to do is calculate the settlements as if PPI not been included--without your settlement figure of 2008--I can't deduce anything--what we have to be sure of whether the "refund" was insurance or part of an overall rebate.

The missing link I'm afraid is the 2008 settlement figures and how they were calculated at that time

Turboman

livylegs wrote: »

oh thanks amersall I will:)
I have sent 2 letters to FP asking for ppi back and this amount is for my whole ppi back through miss selling!
I am not sure how much I am due back to be honest?
my loan was for £23,000 i pay £200.09 a month
ppi is £4,583.90 i pay £40.05 a month
term in 240 months
apr is 8.9%
I have had loan since 7/12/06

thanks so much.xx

Right Livylegs--sorry I missed you before

It seems in earlier posts that FP are trying to force you down the path of "cancellation" with a derisory offer & you still pay the rest over the full term-as has been posted in your replies.

Now lets just assume that you were to be successful in a mis-selling claim at (say) 30/3/2009 after making 27 monthly payments-- here's the situation-assuming that your payments and interest rate remained constant--as each lender calculstes interest slightly different, the figures are rough-but near enough.

As at 30/3/2009

Overall Loan of £27,583 over 120 months @ 8.9% from 7/12/2006 @ £240.14 per mth


Balance of TOTAL loans outstanding = £26,289

Cash Loan of £23,000 over 120 months @ 8.9% from 7/12/2006 @ £200.09 per mth


Balance of Cash Loan outstanding = £21,926

PPi SPI Loan of £4,583 over 120 months @ 8.9% from 7/12/2006 @ £40.05 per mth


Balance of PPI SPI Loan outstanding = £4,363
Total monthly paymnts made (27) = £1,081

__________________________________________________________

SO I would expect if successfully claimed and position put back as if PPI had never been applied

1)-You receive a cheque for £1,081 + 8% of £100 = £1,181
2)-The balance of the PPI loan of £4,363 is written off the overall loan
3)-Leaving a Cash Loan balance of £21,926
4)-Your monthly premium reverts back to £200.09

If the total monthly payment now paying has increased-then calculate the Cash Loan mthly pymnt by just taking 83.38% of the present premium (ie-ratio of 23,000/27,583)

Be sure to post up any further figures you receive

Turbo

tiggrae

di3004 wrote: »

Hiya hun

Yes there have been and I do also know some are battling on with some of their's, but keep at them hun, we will all keep our fingers crossed for you.
Good luck.:A XX

Hi Di,

How are you ?? you seem to be helping everyone still !!!

Just came on this morning to get any information regarding Magic Loans Limited as they appear to have gone bust !!!

Turboman

Hi Tiggrae

What is the approximate additional charge over the calculated outstanding balance if settling early on a loan?

Is it 1 2 or 3 months pymt ? or interest?

Or is it always the new Actuarial Method rather than Rule of 78?

Or is every lender different?

Turbo

di3004

tiggrae wrote: »

Hi Di,

How are you ?? you seem to be helping everyone still !!!

Just came on this morning to get any information regarding Magic Loans Limited as they appear to have gone bust !!!

Wow hi there Tiggrae, how are you ?:A

Its so good to see you here hun, sorry I missed you.

I have heard of Magic loans, I remember they offered us one, oh dear they have gone bust then" if I hear of anything I will let you know.

Please post again soon.;)

Di
XXX

tiggrae

Turboman wrote: »

Hi Tiggrae

What is the approximate additional charge over the calculated outstanding balance if settling early on a loan?

Is it 1 2 or 3 months pymt ? or interest?

Or is it always the new Actuarial Method rather than Rule of 78?

Or is every lender different?

Turbo

it really depends upon when the loan was taken out - only loans taken out after the new method of calculating early redemption are covered by this - prior to this each lender appeared to make up their own method based upon rule 78

tiggrae

di3004 wrote: »

Wow hi there Tiggrae, how are you ?:A

Its so good to see you here hun, sorry I missed you.

I have heard of Magic loans, I remember they offered us one, oh dear they have gone bust then" if I hear of anything I will let you know.

Please post again soon.;)

Di
XXX

yeah they went into liquidation today apparently - another one bites the dust !!

di3004

Tiggrae found this here:

http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=181905&d=409&h=411&f=410

Magic loans goes into liquidation.

di3004

tiggrae wrote: »

yeah they went into liquidation today apparently - another one bites the dust !!

Blimey they are all going down one by one.....

So it will be with the FSCS now then I take it, which can take forever

tiggrae

di3004 wrote: »

Tiggrae found this here:

http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=181905&d=409&h=411&f=410

Magic loans goes into liquidation.

unbelievable they're blaming reclaims of ppi for going bust - I notice there's no apology for putting people into financial misery for mis selling the policies in the first place !!!