How FOS Calculate Refunds

frenchy28

kerrycrabs wrote: »

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

just to clarify one thing before i work it out, I take it the PPI was added to the original loan making the total amount of credit 29988?

kerrycrabs

Yes thats right!

thanks so much- maths was never my strong point!

frenchy28

kerrycrabs wrote: »

Yes thats right!

thanks so much- maths was never my strong point!

ok so here goes, the amount paid which you should be entitled back is approx. £3500

8% interest will be approx. £850

so total entitled back should be £3500 + £850 = £4350 minus the ncb that you have already received. so approx. £1350 if as you say the ncb was £3000

Not only this though your future payments should also come down (or another loan set up at the reduced amount) amersall may know more about how this works.

kerrycrabs

Thanks so much

glad i asked as i was under the impression i would get back the money due in terms of future ppi payments as well!

thanks

[Deleted User]

kerrycrabs wrote: »

i asked as i was under the impression i would get back the money due in terms of future ppi payments as well!

You will get the "future" payments back, by virtue of not having to pay them!!!!:D

kerrycrabs

true- but given a choice id have used it to pay off another debt- but tbh its win win!!!

amersall

Hi, kerrycrabs, I assume FSCS are dealing with this as Picture were declared in default about 3 years ago.

The FSCS only compensate for the PPI so it is actually not mis sold, they give 100% of the first £2000 of the PPI and 90% for the remaining PPI, the whole PPI amount will still be on the loan to term end I am afraid as this will not be taken off as you have not won mis sell.

Contact the FSCS and ask what happens to the total PPI as this should come off the loan balance as you were mis sold this, they may not be able to do anything about this but there is no harm in asking, you also, I believe with the FSCS do not get the 8%.

As Picture have been default a long time now, it is possible that you will get all the PPI back to you, this is what was happening when the FSCS originally paid compensation for Picture customers.

we took out a loan with picture in 2007 for £24000 added to this was £5988 ppi.

This is the PPI that is still on the loan, and not the £3000 you state was owed after the 5 years, the ncb does not remove any of this amount. you pay the whole PPI amount with interest to term end.

kerrycrabs

ok so next question ...

what do we think my monthly repayments will be reduced by? trying to do some forward financial planning!

kerrycrabs

ooo sorry ammersall just seen your reply- im confused again.

ill just take a min or two to try get my head round what you said! thanks

amersall

It's ok, no worries.