How FOS Calculate Refunds

marshallka

maxdp wrote: »

Have updated information in first post and have included how to work out refinanced Loans. Or in fact how the Business should do this.

Was this on before also maxdp

default charges

Mrs Q had got a little behind with her loan repayments. The lender had added default charges, and subsequently interest on those charges. We required the financial business to arrange for the restructuring of the loan – and to write off any charges (and any interest on them) which would not have arisen, if the monthly payment had been the lower amount that would have applied if there had been no PPI policy.

I will delete if it was....?

maxdp

marshallka wrote: »

Was this on before also maxdp

default charges

Mrs Q had got a little behind with her loan repayments. The lender had added default charges, and subsequently interest on those charges. We required the financial business to arrange for the restructuring of the loan – and to write off any charges (and any interest on them) which would not have arisen, if the monthly payment had been the lower amount that would have applied if there had been no PPI policy.

I will delete if it was....?

Thank you have added above.

pinknico

Max can you explain in simple(for me!) terms section B of the new bit you have added thank you.

maxdp

OK Will give it a go. If you say paid 1000.00 of PPI on your first loan and they refunded the balance to you. Well when you refinance to your second loan because you paid 1000. of PPI on the first loan you would not have paid so much off the balance on that loan so that 1000.00 would make you take out 1000. extra on the second loan. etc do you see what I mean.

pinknico

Yep got that but how does the refund work? getting myself confused in what gets taken off that hasnt been paid yet and what gets paid back that has been paid!

maxdp

OK It is the same as the other in as much as they have to calculate the three loans as if you had never had PPI so they will work that out then deduct the refund you would have been given when you settled and refinanced. I understand the banks are getting a program together so they can work out these refunds. It does not always work out more though so I am told hopefully FOS will be able to support with this when decisions are being made.

pinknico

Thanks Max, that now makes sense.

tigerpsg

Thanks maxdp, for the post.
Can someone please help me determine whether PPI refunded by the bank has been calculated properly?
Details of the loan:
loan - £15,000.00
repayment protection £6,095.55
Date loan was taken out - 17 June 2005
Term of loan - 84 months.
PPI refunded on 08/08/09
PPI Premium - £6,095.55
Interest calculated on PPI - £1685.56
Total amount refunded = £7781.11 (08/08/09 )
I would like to know whether that's the maximum the bank should be paying me back?
regards, tigerpsg

di3004

Hi there

Hopefully someone will be along to have a look for you soon, sorry I am not the one to work out calculations....:o, good luck though.;)

Frith

Please help!

I took out a loan over 60 months where the PPI was £42.88 per month. I paid 6 months of loan repayments so the PPI paid was £257.28. With interest from May 2001 (when I made the last repayment, the total is £428.

HOWEVER... the complicated bit it the loan was then taken into collections. The total taken into collections therefore was made up of loan PLUS 54 payments of £42.88.

HSBC wrote yesterday saying basically I can have the 6x£42 back. What should I write about the massive amount of PPI that I am still paying off as part of my debt?

Altogether, the PPI equals £2572.80! Interest from May 2001 (when it went into collections) is loads - over £4000 in total.

Thanks to anyone who can decipher the above and help me out!

Liz