How FOS Calculate Refunds

loopylisa87

Hi, I did post this as a thread but someone suggested that if I posted here someone might be able to advise me.

I have used the advice from this site and forum to make a claim for PPI from LloydsTSB, after filling in the questionnaire and waiting my 16 weeks, i recieved a letter accepting my claim and that they would be refunding me premium +8% interest but no refund amount stated. This morning I have recieved a letter containing the amount of refund but am unsure whether to accept it as, If I understand correctly, it is not the right amount. here's the details what do you experts think?

I took out a joint loan with my partner in february 2008 for £8000, I didn't want PPI but they wouldn't proceed without it until I had started my job, so I took it out. and the 3 month payment free period began, before this 3 months was up I started my job, went back to the bank and explained that as I had now started work I no longer wanted the PPI and wanted it taken off, they agreed this time and promptly changed the loan (I didn't get another 3 months payment free) and paid my revised amount on the original scheduled date May 2008. So I never actually made a payment for the loan+PPI HOWEVER

When I looked at little deeper into this I noticed that on my online banking it says original loan amount £8627.90 taken out May 2008

Surely I should have this extra 627.90 refunded to me as they have refinanced the loan and charged me extra however my letter offers me £212.35 which is £25.58 interest + £186.77 Excess balance and interest.

I may be getting out of my depth here but clearly I shouldn't be responsible for the extra £627.90

What do you think?
Many thanks in advance

amersall

Hi there, this is what happens when you cancel the ppi, a new loan is done without ppi and sometimes a new apr and term.

I tell people not to cancel ppi if they have a mis sell claim in for a loan,had you waited for the mis sell,the whole ppi amount would have been taken off your loan and the monthly payment would have been reduced by the ppi monthly amount,so you would have had the same loan but a smaller balance.

Someone who may know more about this will post i am sure and may help you more.

loopylisa87

Thanks for the information, this was back in 2008 with literally 3 months between taking it out and cancelling, I didn't realise I had even paid more as I don't have any additional paperwork for the refinance (and I keep absolutely everything meticulously filed back to 2005) I'm going to call and risk the hold times to argue my point.

KIMY

KIMY wrote: »

Hi Niggly can you give me any help with this calculation, Many thanks

Can any one help me with this calculation, Please :j

di3004

Bumping :j

KIMY

Thanks, hope someone help:j

di3004

Hopefully in the weekday someone will be here.

Anybody pretty please?:D:j:j

clairerobo13

Hi, I send off 2 letters to Natwest and few months back reclaiming on 2 loans. I received letters end of last week offering 'goodwill' gestures for the amount. I was disappointed by the amounts offered but when looking back at my loan agreements, im confused if the amount is close or they're trying to pull the wool over my eyes! Ive seen other threads about adding compensation and interest so really confused now!!!
Is there a PPI claim calculator/spreadsheet someone could recommend? Ive tried a few and they either want to take personal details or just crap!
I used one that give me some good figures but god knows if its correct!
Here are the details if anyone could help -
1st loan finished - 18 months duration for £1120 borrowed (PPI not included).PPI total 139.14 at APR of 20.9%. I was offered by Natwest a total of £151.07 with breakdown as PPI refund £115.65 with net interest £35.42
2nd loan 12 month to go - 60 months duration for £4403.40 borrowed (PPI not included). PPI total £1283.40 at APR of 13.4%. I have been offered a total of £1170.30 with breakdown at £1029.41 plus £140.89 interest.
Im unsure whether to just accept offers or am i missing something???
Thanks for any help offered!

PINKLINT

Bh pro rata offer help needed please!!
Been advised to pop this on here as well so any help appreciated.



Have just received an offer letter for two of my BH agreements for they have linked these two loans together for some reason. They state in their letter that the only issue that arose from the sale was that I incurred aditional costs when settling the accounts early!!

They go on to set out their offer which basicially is confusing but part of it states

Loan 1

Paid via repayments £234.00
Paid in Final Payment £385.28
Less payments due if Pro Rata Basis -£296.40 What is this for!!!
Sub total - potential refund of PPI for this loan £322.88

Same for Loan 2

Paid via Repayments £245.50
Paid in final payment £458.51
Less payment due if pro rata basis - £327.12 again why!!

It goes on to state interest
Excess balance and interest (paid via instalments) £51.71
Excess B & I (paid in final payment £302.58
plus Statutory Interest £451.52

total refund £1182.69

Now I understand that when i settled these loans early I would not have paid the full amount of PPI and that I am getting back some of what I overpaid on settling what I don't understand is the amount they are deducting from this over payment and the repayments. Surely I should be getting a full refund of the monthly payments, the overpayment at settlement and the the interest on these amounts:mad:

I have phoned BH the lady on the phone at first tried to fob me off saying it was only pro rata because i settled early so didn't pay all PPI which i understand but and told her this but then asked her why they were make those deductions anyway she put me on hold for ages and came back and said could she have my contact number and one of the complaints team would ring me back to discuss with me.

So just wondering before making a complete fool of myself on the phone am i right in what i am saying that they shouldn't be deducting anything from payments made and overpayment at settlement.

Sorry its long but am mad and ranting!!:o

di3004

Keeping this bumped for help from you clever folks, cheers.;)