How FOS Calculate Refunds

amersall

Fingers crossed x.

ALIBOBSY

I think the first post needs amending.
The FOS state clearly that a person should be put back into the position thay would be had the matter complained about never occured.
Their redress guidence regarding PPI is here
http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

This clearly shows that on both credit cards and loans the award should refund premiums paid (and interest charged on the premiums-NOT just the 8% as some banks are trying to get away with), and any charges (plus interest) that would not have happened but for the PPI-they should restructure the card/loan with the same payments and on cards in particular it is likely any over limit charges will be incorrect.
There are also issues where one loan rolled over into another so carrying with it a portion of the earlier loans PPI on into the new loan, this often happened over and over. This also needs to be looked at and refunded plus interest, but have only seen claims where this was refunded when the customer via the FOS raised the issue.

I think the banks are trying to get away with just refunding premiums plus 8% as it is not only cheaper, it is alot less work and they are awash with claims. The FOS also state the customer should get a copy of the calculations-but no banks seem to do this unless pushed.

To be honest they should be restructuring the card/loan altogether and thus effectively removing all PPI/interest on the ppi/charges caused by the PPI/interest on the charges/removing any interest on the interest charged for both the above as well. If the card/loan defaulted and the reconstruction then shows the account would have been zero at that point the default should also be removed.

This is the only way they can really say the customer is in the position thay were in had the PPI not existed.
Like before though many banks also word their offer as a "goodwill gesture", hoping people will take cash in the hand. Can't blame them I suppose, but just shows a leopard never changes its spots and how low the banks really are.

Just something to think about, you can either push for what we should be getting in refunds or say I can't be bothered with the hassle and take whats offered now.
TBH I can't argue against the bird in the hand approach, especially if you need the money and as its something you never thought you would get back anyway, but people need to be aware the banks are up to their tricks again.

Ali x

amersall

With a loan,the interest is in the ppi monthly payment,when you win this redress,you get the whole payments back that you have made.

Cannot speak for Credit Cards as i do not know enough about them.
Does anyone know if interest is charged on the ppi payment,or is it just the balance on a Credit Card?.

ALIBOBSY

For most cards the PPI goes into the balance and I believe has interest added onto the lot-but it may be like purchases where you don't pay interest for the first month.
Probably varies card to card and no doubt has changed over the years.
Loans are an easier calc if front loaded as the interest is included in the monthly payment.
Ali x

Opps amersall had already said about the loans

helenmcneill_2

Can anyone help me with the calulations - i am totally confusing myself

First Schedule
Total amount payable £ 11867.20 APR 16.3%

Second Schedule
Total amount payable £2930.40 APR 15.5%

Total payable monthly for 59 months £244.21
month 60 £294.21


Thanks in advance!!

coffeedog

Hi,

I have received an offer letter from egg with ppi refunds :j

I would like to check the amount is correct as I had three loans with them, two were top up loans and I'm confusing myself a lot! I'm so happy I have some money back to pay off debts but want to check its right. I would be grateful for any help you could give. Here we go:

LOAN 1

Amount. £ 5000
Ppi. £ 1449.85
Total amount £6,449.85 without interest
Ppi monthly ( guess as not broken down on agreement ) £ 20.14
Total monthly payment. £.109.12
Payments made. 4
Apr 6.9%
Term 72 months !
PPI rebate - not specified in SAR docs but 'payoff' shown as £5112.90


LOAN 2
Amount. £ 7156
Ppi. £2907.98
Total amount £10063.98 without interest
Ppi monthly £41.84
Total monthly payment £ 155.18
Payments made 5
Apr. 6.9%
Term 84 months !
Settlement including rebate. £9434.76
Settlement excluding rebate. £ 12,476.72
Says rolling ppi not offered
Payoff shown as £7,239.10
Rebate here ?

LOAN 3
Amount. £9250
Ppi. £3436.65
Total. £12686.65 without interest
Ppi monthly. £52.99
Total monthly payment £195.63
Apr. 6.9%
Payments made 3
Term 84 months
Ppi rebate - says settled loan with ppi, then later says settled without ppi !
Settlement inc rebate £9,746.7
Settlement excl rebate £12637.53
Payoff £9746.70
Guess there was a rebate here

EGG's calculation

total PPI premiums. £7794.48
Interest on premiums paid. £338.97
Plus 8% interest. £782.50
Less previous rebate paid. £6556.74

Total of compensation. £2359.21



I don't think the amount I'm being offered is bad for 12 months worth of payments but would be grateful for some help

Happy bank holiday weekend :beer:

Coffeedog

maggy50

I have a claim that has gone to an adjudicator at FOS

It is for a credit card with Capital One .

After a long wait I have been offered a refund of ppi premiums associated interest and 8% interest full and final settlement etc.

This has been offered through the adjudicator who also says that I can take it to the ombudsman for review if I do not agree with this offer.

I take it that if accepting it will not be reconstruction and putting me in a position I would have been before PPI was added which was from day one of taking the credit card.

This is an upheld complaint but I am not sure what to do ?
Should I refuse ? go to ombudsman for further review ?

Time scale does not matter to me but I have heard that this is another short cut being made by the banks to avoid paying the due amount.

amersall

I have been offered a refund of ppi premiums associated interest and 8% interest full and final settlement etc.

This is full redress, some only go back 6 years without proof that PPI was paid previous to this so you will have to have statements to prove this, have they said what they are offering you in terms of time period? if you found this out and you think it is wrong then you can ask for this to be passed to the ombudsman.

maggy50

Thank you Amersall

No time scale has been made clear.

I have most if my statements luckily so can work out approximate figure.

logantb22

hi , just joined today and i must say what a great site .
if i may be so bold as to ask for some help .
could someone tell me what i could expect to get refunded on these two loans ,

1 . mbna ;
loan £16000
ppi £5546.08
credit charge for loan £7627.86 , includes intrest payable for insurance advance
total amount payable £29213.93
apr 8.7%
loan monthly repayments £347.30
term 84 mths ,
started may 2006 , paid off early april 2007
settlement figure to pay off the loan was £16373.90

2; black horse
loan amount £5000 over 54 mths
charge for credit £1400.62
total payable £6400.62
apr 11.9%
ppi £955.30
charge for credit £267.26
total payable £1222.56

monthly repayments £141.17
started 01/2004
repaid early on 04/2007
settlement figure to pay off the loan was £1866.08
have sent claims to both which have been upheld in my favor but they are dragging their heels
many thanks in advance ,
les