How FOS Calculate Refunds

DaisyMoo

Good Evening everyone,

Firstly I apologise if this is in the wrong place, but I was wondering if someone could help me with an estimate of compensation I should hope to receive from HSBC.

The FOS state that HSBC are willing to offer a "Gesture of Goodwill" based on the recommendations of the FOS, the problem is, myself and OH have both come up with completely different figures based on the guidelines from the FOS. For the sake of my sanity, I would be very grateful if someone could help me out

The loan was taken out in May 2005 for £20770 (84 month term)
Total Repayable £27,678.93
Outstanding balance £4942.80 (believe there have been 72 payments to date)
I am unsure of the interest rate but believe it was around 9%

I know it will take a while for the bank to sort it out, but it would be really helpful if we had an idea of how much to expect. The figures we have worked out so far have a difference of about £3000, so it would be useful to know who is closest! :rotfl:

As always, thank you for your time and help x

dilus

Hi DaisyMoo,
I have two conflicting formulas for working out possible compensation but I am inclined to go with Niggly's version as it is more realistic. I won't recite them both here as it might confuse you even more, as I was until Niggly put it in layman's terms for me.
Basically they have to return you to a point had the PPI NOT been added, ie return the PPI you have paid plus whatever the interest rate was when you took out the loan, then add 8% per month of payments (in your case 72 months) Niggly's figures in my case came out £1500 lower than the other formula I have found but as I say his formula (in my case) is more realistic.
You have to work out what percentage of your repayments were the PPI and times this by the amount of payments made, then add 8% interest per month, confusing I know but I would be inclined to go with your lower figure, anything above this is a bonus.
I'm sure I will be corrected if I am wrong in my understanding of this.
In my case Niggly's figure was £6500 approx and the other formula worked out at £8000, so I too have a big difference.
I had a £10,000 loan, total repayable of £17,400 over 7 years, so Niggly's lower figures add up more realistically.

tonyaddict1

yes a loan for £20.000 7 years ago and just about to finish paying it off in 3 months!!! ppi amount was between £80 and £84 a month for almost 7 years which i work out to b at least £6.000 owed!!! anyway they have not made an admission so dont understand why they r offering anything at all????

thanks;)

DaisyMoo

tonyaddict1 wrote: »

yes a loan for £20.000 7 years ago and just about to finish paying it off in 3 months!!! ppi amount was between £80 and £84 a month for almost 7 years which i work out to b at least £6.000 owed!!! anyway they have not made an admission so dont understand why they r offering anything at all????

thanks;)

Hi Tony, the loan was for 84 months so still have 1 year to go. You are right, they have not made an admission, although the FOS confirmed the bank would make an offer and detailed how this should be calculated in the letter - I was just looking for an idea of what should be owed, putting me in a better position to consider any offer made.

Dilus - thanks for the advice. Fingers crossed it all works out now!

Placida

I am waiting for Barclays to review my complaint about mis sold PPIs & have been told to expect their decision by November 4th. I have had successive personal loans in 2004 (with PPI), refinanced in Feb 2005, November 2005 (PPI), November 2007 & December 2010 which is still in force.

When looking through paper work this weekend, I noticed the amount for my loan in Nov 2007(£16900 no PPI)) was less than the previous loan Nov 2005 (£17, 7000 with PPI) after 23 payments of £399.63 x 23 = £9 191.49.
I then had a "light bulb moment" & seem to remember talking to bank & saying I didn’t need PPI as I was a teacher & hence the new loan. I do not have the settlement figures so I don’t know how they calculated new £16,900 loan amount.

Nov 2005
Amount of loan: £17,700 + Premium loan £5,334.19
Total charge for credit: £8,095.56 + £2,439.17
Total amount payable: £25,795.56 + £7773.36
Monthly payment: £307.09 + £92.54
Interest 11.435% p.a.
payments 84

Nov 2007
Amount of loan: £16,900
Total charge for credit: £3,135.80
Total amount payable: £20,035.80
Monthly payment: £333.93
Interest 6.910% p.a.
payments 60

My questions are
1. If Barclays agreed to cancel my PPI in Nov 2007 does this mean they will have to agree they mis sold ppi in 2004 (My circumstances were the same)
2. Will Barclays now follow FOS guidelines for “successive single premium payment protection insurance” to recalculate the all my loans & the payments up to my present one, to what they would have been if I had taken the first loan in 2004 without PPI & pay me compensation?
I would really appreciate some help. Should Request a SAR now or wait for their decision?

Thanks I would be so grateful for any advice

weyford

not sure if anyone can help in the amount i would get bk from Halifax

1000 loan over 12months premiums paid 34.00 loan taking out on 1997

thanks for any info

amersall

after waiting 2 months i finally got an offer off rbs. in totall i should be offered about £6.500 but the offer i got was £981!!!!! they say they are offering it as a good will gesture without admission of liability for the miss selling their words!!! now should i just take the money or do i go to ombudsman??? apparently the money is a refund of insurance premiums and interest that iv paid. any help would be gratfully appreciated. thanks

yes a loan for £20.000 7 years ago and just about to finish paying it off in 3 months!!! ppi amount was between £80 and £84 a month for almost 7 years which i work out to b at least £6.000 owed!!! anyway they have not made an admission so dont understand why they r offering anything at all????

Hi Niggly,could you take a look at this please xxx.

bex2012

Hi, Ive been pointed to this thread, and was wondering if anyon could check my figures and make sure Im thinking along the correct lines:

After emailing MBNA's CEO, I finally got an offer this afternoon. They are offering:

PPI and associated interest: £2100.02
8% amount: £979.37

Total amount payable: £ 3079.57


which doesnt sound right to me (or maybe Im just being greedy and expecting too much... maths really isnt my strong point!). Would someone be really nice and double-check for me?


These are my loan figures:

Loan amount: £15800
PPI amount: £2807.12
Total amount: £18607.12
APR: 6.9%
Monthly APR: 0.575 (6.9 / 12)
48 months/ 4 years
Monthly repayable amount: £442.90

By my calculations the PPI amount per month was £91.03 (2807.12 / 48)

I made 16 payments before clearing the loan (16 x £442.90 = £7086.40).

The settlement figure of the loan was £12288 (I dont have anything to say if this included a refund of PPI, all the PPI was paid for at the start of the loan).

If I hadnt had the PPI, the figures would have been £351.87 per month (£442.90 - £91.03), over the 16 months: 16 x £351.87 = £5629.92

So am I right in thinking that they have to refund the 16 x 91.03 = £1456.48 PLUS £1442.08 (£7086.40 - £5629.92 = £1442.08) which is the difference between the loan with and without PPI.
£1456.48
+£1442.08
= £2898.56

Then obviously the interest from each PPI payment needs to be added, plus the 8% statutory. I put all the info in the CAG ppi calculator, and it was bringing the refund due at over 5K!

amersall

Dont forget they will have taken off the rebate for the ppi that they gave you when you settled,you need to find out how much this was,and you will have a better idea of the offer they have made.

Niggly_2

Suffering with migraines. Back soon to do figs

N