How FOS Calculate Refunds

di3004

jo-urney wrote: »

hate to bump, but wondered if the brainy people who are good with figures are around on the site at the moment and wouldnt mind taking a gander at this lot please!

Niggly's the one, will let him know in case this is missed.:D;)

Niggly_2

di3004 wrote: »

Niggly's the one, will let him know in case this is missed.:D;)

yEAH NO PROBS. At a mates sorting out graphics card . Be back this eve. The figs look good to me. Thing is PPI paid in stages and I dont know if the FSCS will understand this one. Oh well give it the once over and then we will explain it to FSCS.

n

Niggly_2

jo-urney wrote: »

hate to bump, but wondered if the brainy people who are good with figures are around on the site at the moment and wouldnt mind taking a gander at this lot please!

Here are my figs. Please be aware the FSCS will not be well versed in this type of redress.

You will have to be ready to combat their fig when they work the refund out.

You have had £5600 cash back from the ppi so this has to be factored in.

Any way

Overpayments on PPI contributions
PPI IS £91.00 x 70 months = £6370 interest is £1714 total is £8084

Interest on PPI loan
PPI is £11477 at 7.2%/12 x 36 = £2479.20 until 2008 plus 34 months 8% simple £561.96 total £3041.16

PPI £8676 at 7.2% = £624.67 until 2009 plus 22 months at 8% simple £91.61. Total is £716.28

PPI £6996.38 at 7.2% = £503.74 until 2010 plus 10 months at 8% simple £33.58 total is £537.32

Refund of ppi

Total £11477

Summary

Overpayments refund with interest =£8084
Refunds of interest on PPI as it reduces £4294.76 (£3041.16+716.28+537.32)
Refund of PPI £11477

Total gross redress is £23855.76 less refunds of ppi £5600 = £18255

(Don’t forget you have had £5600 as cash back)

The total cost of the ppi to you over the term of the loan would have been £21840

:beer: N

jo-urney

Niggly wrote: »

Here are my figs. Please be aware the FSCS will not be well versed in this type of redress.

You will have to be ready to combat their fig when they work the refund out.

You have had £5600 cash back from the ppi so this has to be factored in.

Any way

Overpayments on PPI contributions
PPI IS £91.00 x 70 months = £6370 interest is £1714 total is £8084

Interest on PPI loan
PPI is £11477 at 7.2%/12 x 36 = £2479.20 until 2008 plus 34 months 8% simple £561.96 total £3041.16

PPI £8676 at 7.2% = £624.67 until 2009 plus 22 months at 8% simple £91.61. Total is £716.28

PPI £6996.38 at 7.2% = £503.74 until 2010 plus 10 months at 8% simple £33.58 total is £537.32

Refund of ppi

Total £11477

Summary

Overpayments refund with interest =£8084
Refunds of interest on PPI as it reduces £4294.76 (£3041.16+716.28+537.32)
Refund of PPI £11477

Total gross redress is £23855.76 less refunds of ppi £5600 = £18255

(Don’t forget you have had £5600 as cash back)

The total cost of the ppi to you over the term of the loan would have been £21840

:beer: N

wow ok - thanks for looking at this for me im guessing that as the fscs pay at 90% of total owed, it would be £16429.50. a couple of others i have spoken to who have successfully caimed their money back from the fscs (with Picture Loans like myself) have received the amount owed to them in the form of a cheque - the money has not been used to reduce their loan.

do you mean i would be owed £18255 (or £16429.50) as well as the ppi of £11477 coming off my loan, or do u think the £18255 would have the £11477 taken off and paid back into my loan and i would receive the remainder of approx 6 grand? i know these are quite specific questions, but im just trying to work out if i could end up with a massive amont back on top of my ppi being taken off the loan amount now!

Niggly_2

jo-urney wrote: »

wow ok - thanks for looking at this for me im guessing that as the fscs pay at 90% of total owed, it would be £16429.50. a couple of others i have spoken to who have successfully caimed their money back from the fscs (with Picture Loans like myself) have received the amount owed to them in the form of a cheque - the money has not been used to reduce their loan.

do you mean i would be owed £18255 (or £16429.50) as well as the ppi of £11477 coming off my loan, or do u think the £18255 would have the £11477 taken off and paid back into my loan and i would receive the remainder of approx 6 grand? i know these are quite specific questions, but im just trying to work out if i could end up with a massive amont back on top of my ppi being taken off the loan amount now!

I can only calculate the figs based on what First plus would do. My figs are conservative. My knowledge of the FSCS is that they would put you back in a position where by the ppi hadnt existed via a total refund rather than reconstruct the loan.

So I dont think they will pay off the whole ppi figure rather give a cheque and expect you to do it. Some one might come along and say no they do. The thing is this is post cashback being paid it has to be accounted for as a rebate against the total redress.

So I would expect you to get a cheque in the region of £16k and then decide what you do with it.

I would keep my powder dry on this until the FSCS come up with a figure. I need to mess about with the difference in costings in bringing down the payments at the end of year 5 by £91 and see how much that would cost as a loan and then take this figure as redress plus refunding the costs to you on the first 5 years.


I will dig deeper and see if I can get the total redress figure up a bit.

N

jo-urney

cheers, that would make sense. just looked back at a few of the personal message conversations i have had with ppl re picture redress and there is one who took out a few grand less than us a couple of years after us (so have received less rebate so far) and got a cheque for about 13 grand from the fscs last month.

i really appreciate u taking the time to work this lot out for me i should just be patient and wait and see what happens but im too excited by the thought of actually having some money in my pocket lol.

another thing that makes this even more difficult is that my original repayments on the loan have gone up over the last few years by about 30-40 quid a month so am currently paying 480.70 as opposed to the original loan repayment amout of about 450ish (cant check exact amounts as the paperwork is in the bedroom cupboard and my kid is asleep so dont want to disturb him!) dont know how much difference this would make to everything.

Niggly_2

jo-urney wrote: »

cheers, that would make sense. just looked back at a few of the personal message conversations i have had with ppl re picture redress and there is one who took out a few grand less than us a couple of years after us (so have received less rebate so far) and got a cheque for about 13 grand from the fscs last month.

i really appreciate u taking the time to work this lot out for me i should just be patient and wait and see what happens but im too excited by the thought of actually having some money in my pocket lol.

another thing that makes this even more difficult is that my original repayments on the loan have gone up over the last few years by about 30-40 quid a month so am currently paying 480.70 as opposed to the original loan repayment amout of about 450ish (cant check exact amounts as the paperwork is in the bedroom cupboard and my kid is asleep so dont want to disturb him!) dont know how much difference this would make to everything.

iN THE MORNING CAN YOU POINT OUT THE THREADS AND (bloody caps lock) and I will take a look. I wonder if they got the rebate taken off the loan. Less rebate as well for them would mean more to pay put to them but less interest.

I will be on the site tomorrow so will post up any morethen for you.

If its any consolation I am sitting on a £150 per month ppi paid last 6 years and recieved the cashback of £18600 but 300 months term.

I wont get the cashback twicw but im hoping for the return of prems and interest on ppi plus 8 % so I know how you feel.

N

jo-urney

hey. ive just had a quick look through the posts i remembered, and they all have a vital bit of info missing - either how much they got back, whether they had the rebate amount taken off, how much the loan was for etc etc lol. i have asked the posters for additional details each time but they have mainly been ppl who were new to the board and havent really returned since posting about their success so i have heard nothing more. sorry! :eek:

tifosi

Niggly -

can you give me some idea what I can realistically expect from RBS when they pay?

They have agreed to pay out, but not given figures yet

I had the card from 1997 - current, but it has had arrears since approx 2007 with a balance owing (no payments made since 2007, but equally no interest charged since about November 2007) of £3500'ish

The balance started in 97' at approx 1k, and varied between about 4k and 10k throughout the life of it, with the average being around 5k

I cancelled the PPI back in (approx) December 2006 but as said above, the card is technically sill "live" although its in arrears

Will they be obliged to pay me interest charged on the PPI (and compound on that) for the lifetime (interest rate for most of the life waws approx 17% APR)? I paid off the balance twice, once around 2003 and once approx 2005


???

tifosi

Better figures to give a proper idea so anyone can assist on calculation -

This is taken using MSE's 8% calculator, but obviously I'd like to know what can be done about the interest already charged on the premiums as well:










As you can probably see from the above, balance was cleared at the following points :

February 2002

(Back to 3k by Apr 2002 and 4.6k by June 2002)

February 2003

(Back to £3k by Nov 2003 and 10k by Dec 2003)


Good grief, young and reckless or what??!!