Need help understanding my refund ??

Breezybree

Hi there

I sent off the first letter to my bank (Halifax) a few weeks ago and received a reply today but I’m rubbish when it comes to figures (that’s why I had PPI in the first place) and need help with working out if it is a fair deal.

My loan isn’t too big it’s -£2000
I made my first payment of £67.49 on the 12th Dec 2007
Last payment to date of £67.49 on the 12th March 2009

Making a total of 16 payments equaling £1079.84

So the without PPI should the balance be -£920.16?
(Or do you still have to pay something for it)

However the balance on my online bank account says -£1,763.98 ??

My letter that I have received though says;

This has been calculated as follows:

Refund of premium paid to date = £87.49
Refund of interest at 16.4% paid to date = £73.56
Interest at 8% = £9.13
Refund of last 3 months interest = £70.95
Total = £241.13

In addition we need to arrange a new loan without PPI for you and this will be set up with a balance of £1500.00 We have calculated the balance on your new loan by taking the outstanding balance on your current loan account and reduced this by the amount of your original PPI premium, less the additional premiums that are being refunded.

Is this fair or unfair?
What are my next steps?

Do I accept that and report this as a success
Or demand more?

Kind regards
Breezybree

di3004

Breezybree wrote: »

Hi there

I sent off the first letter to my bank (Halifax) a few weeks ago and received a reply today but I’m rubbish when it comes to figures (that’s why I had PPI in the first place) and need help with working out if it is a fair deal.

My loan isn’t too big it’s -£2000
I made my first payment of £67.49 on the 12th Dec 2007
Last payment to date of £67.49 on the 12th March 2009

Making a total of 16 payments equaling £1079.84

So the without PPI should the balance be -£920.16?
(Or do you still have to pay something for it)

However the balance on my online bank account says -£1,763.98 ??

My letter that I have received though says;

This has been calculated as follows:

Refund of premium paid to date = £87.49
Refund of interest at 16.4% paid to date = £73.56
Interest at 8% = £9.13
Refund of last 3 months interest = £70.95
Total = £241.13

In addition we need to arrange a new loan without PPI for you and this will be set up with a balance of £1500.00 We have calculated the balance on your new loan by taking the outstanding balance on your current loan account and reduced this by the amount of your original PPI premium, less the additional premiums that are being refunded.

Is this fair or unfair?
What are my next steps?

Do I accept that and report this as a success
Or demand more?

Kind regards
Breezybree

Hi there hun and YIKES......:eek: , I have not got a clue with calculations, but if you post up on the above reclaim discussion thread I'm sure they will get looked at for you, Turbo should be back soon, depending how long you have to deal with these, and he is good at working out figures.

For the easiest you could copy and paste your post onto the mentioned thread, with a bit of luck Turbo will be back soon.

For more info, this may help here, its from the Sticky thread posted by Maxdp:
http://forums.moneysavingexpert.com/showthread.html?t=1596473

Good luck.;)

Di
X

melorablack

The refund of the last 3 months interest is to cover you for the deferred period on the new loan they will have to set up, so you are not financially disadvantaged. The 8% interest is a goodwill gesture.

You had a single premium policy, where the PPI was added at the start of the loan and incurs interest. You have been refunded what you have already paid, plus the interest you have paid on the premiums. The new loan amount is minus the rest of the PPI that you haven't yet paid. So they have got rid of all the ppi (refunded what you have already paid and removed whay you have not).

Because the interest payments are higher at the beginning of the loan it is difficult to calculate the exact amount you have paid so far without the calculator the halifax have used, but it is FOS approved so what they have offered will more than likely be right.