How FOS Calculate Refunds

frenchy28

Tuesday6 wrote: »

Hi, please could someone advise on how to calculate the 8% interest on my PPI refund?

I paid loan off early so only made 13 monthly payments.

Details:
Monthly PPI payment £35.83
Paid for 13 months: 17-Aug-00 to 17-Aug-01 inclusive.

Is this enough info or do I need to use to the Loan amount :think:

Will be extremely greatful if anyone could let me know how to calculate it. :j

Many thanks in advance

Have just worked it out VERY roughly in my head and it should come to around about £1000

Tuesday6

frenchy28 wrote: »

Have just worked it out VERY roughly in my head and it should come to around about £1000

Thank you so much frenchy28 :T

I've been offered £891 (forgot to add this to my post) but had no idea whether it was correct:

• £465.79 is refund of payments which is correct
• £425.42 is interest refund at 8%, didn't have a clue whether this was correct.

I have a couple more claims due, would you be able to explain how you worked it out then I won't have to keep asking on here

Thanks again for your help :beer:

sanfran1

frenchy28 wrote: »

Have just worked it out VERY roughly in my head and it should come to around about £1000

Just wondered if I am being offered the correct amount of interest.
To summarise we paid a premium of £17.32 per mth between Apr 98 and May 02 inclusive.
We have been offered a total interest amount of £832.30.
The breakdown shows interest applied at 0.667% per mth to each premium on a cumulative basis. Then from June 02 0.667% of the total premiums paid has been added on each mth until now (£5.64 per mth)

I'm hoping someone can tell me if this sounds right?

Thanks in advance!

frenchy28

That amount is spot on sanfran

sanfran1

frenchy28 wrote: »

That amount is spot on sanfran

Aw thank you - i'll be glad to accept this then.
Thanks for the reply.

Spongebob38

Firstly I'd like to thank Martin very much for his letter/claim templates. I send mine in about 5 weeks ago and received a letter back from BOS with a decision to give me my PPI back.

Now, I can see how when you're still paying your loan how difficult it is to work out if they're giving you the correct amount!

So if anyone can help it'd be much appreciated.

Sept 08 started paying £178.90 for a £6500 loan and this is how it's broken down.

Amount of credit (the cash loan) = £6,500
Amount of credit (the insurance loan) = £1,878.99
Total amount of credit (the total loan) = £8,378.99
Duration of the agreement = 74 months
Total amount you pay for the cash loan = £9,992.16
Total amount you pay for the insurance loan = £2,888.64
Total amount you pay for the total loan = £12,880.80

You must pay the total loan, arrangement fee and interest by 72 monthly payments (???)

Amount of monthly payments £178.90
APR 15.4%

We will divide your monthly payments between cash loan and the insurance loan in the same proportion as they bear to the total loan

The cash price of the insurance premium is £1,878.99
Insurance Premium Tax at the rate of 5% in included in the non-life elements of the insurance premium.

This is the bit I don't understand with the initial loan....

Total charge for credit on cash loan = £3,492.16
Total charge for credit on insurance loan = £1,009.65
Total charge for credit on total loan = £4,501.81

Annual int rate above equivalent of our monthly int rate of 1.204%

---

Ok, so I've got after July's payment (not sure if that's going through or not) 28 months left.

And I've been offered

Refund of Premiums £1,174.37
Refund on Interest £630.85
Interest at 8%, calculated up until 26 July 2012 £280.54
Total = £2,085.76

The NEW loan without PPI to complete loan will be £3,447

That final figure looks a bit high to me, as I've already paid (inc July) £8,229.40 of a £12,880, so I've got £4651.40 to pay and they're setting up a new loan for £3,447 which only means a gain of £1204.40??? *confused*.

If anyone can help, I'd be very grateful before accepting their offer.

Thanks

Spongebob38

Just by doing this process I've just realised what happens next.....I receive a payment equal to my PPI that I've paid to date and then a new loan is set up for the £3,447.

Can I then pay any of my PPI payment towards the £3,447?

Hallelujah, my brain is actually working :beer:

[Deleted User]

Spongebob38 wrote: »

Can I then pay any of my PPI payment towards the £3,447?

I think you'd have to negotiate that with your lender. You can certainly pay off all the loan if you have funds, but they may not be so keen for only some of it to be paid.

frenchy28

Hi Spongebob, this calculation looks correct, they will give you a cheque for the amount offered then they have also offset the rest of the ppi that was still on the loan to create the new amount of loan. If I was you i'd just ask them to keep it and make the new loan even smaller although it is nice to get some cash back in your pocket.

Well done

kerrycrabs

Hi

hoping someone can help me calculate my potential redress before i go bonkers trying to work it out.

we took out a loan with picture in 2007 for £24000 added to this was £5988 ppi. we pay £279.84 a month in repayments and the term of the loan is 240 months.

we have had the loan for 5 years now and got ncb at yr 3, 4 and 5. the cover from the ppi has now ended (although we are still paying for it.. ggrrrrrrr) this totalled no more than £3000

i cant tell from the credit agreement if the interest ios 9.5% or 9.9%??

im really confused by it all tbh and cant believe that we are still paying for such shocking ppi- which was almost sold to us a a way of saving money from the NCB!

Any way thanks in advance- hoping someone can help!

thanks