Need Help with bank ppi calculation. success i think? or maybe not?

marcas_2

Hey everyone,

Just been made an offer on my loan ppi reclaim but wondered if i should accept or if their offer is unnaceptable? trying to figure out how much in charges they owe me but dont understand what i will get back

select loan - £7.188.81 taken out 11th November 2003
ppi - £1904.72
interes rate 14.1 % per annum

remainder of loan payments due £2928
paying £170 p month but due to financial troubles now paying back just £27 p month for next 6 months then to be reviewed.

I sent letter early April asking for subsequent interest on payments & 8% stat interest that a court would award to be paid using template letter under mis sold policy.
maybe im a bit stupid with these things but the response & offer is a bit vague for me.
Its so important i clear this loan as i'm stressed having just lost my job and have no income coming in so your help would be extremely appreciated.

After receiving 2 letters with apology and asking me to wait for an outcome i received this letter this morning :

I have decided to uphold your complaint and offer to settle with the following :
x calculate a full refund of the ppi premiums that have been paid;
x add interest charged on the premiums during the term of the loan;
x remove any outstanding payments and interest remaining on the ppi loan
x to give you the choice of reducing your monthly repayments (assuming you wish to accept this offer.)

I am unable to give you a precise calculation as interest will be added up to the time of settlement;
however for illustrative purpose only, the refund of premiums would equate to £1,904.72 to which interest charged will be added.

Please note this offer is subject to your agreeing to the cancelation of your PPI policy and all cover will be lost.
Once again please accept our apologies
If you would like to accept please find enclosed acceptance slip.

X I accept the offer of a refund of my loan insurance premium of £1,904.72 plus interest accrued as a result of this amount on an ex-gratia basis, in full and final setlement of my complaint.
I understand that this payment will be made to my loan account to reduce the outstanding debt.
Signed .....

Ok So at first i was so happy with this but now wondering what is the interest that i will receive? I thought this would clear the debt so there would be no need to reduce my monthly payments??

and as it says : add interest charged on the premiums during the term of the loan
and states in the agreement : plus interest accrued as a result of this amount on an ex-gratia basis.
does this mean i get the %8 interes or the full 14.1%?
am i missing something here?
I calculated roughly (im not great with math) and figure if its 8% i would receive around £848 on top of the premium offered of £1908 leaving me with £176 to pay off loan??

if 14% it will be £1485 interest due with the £1908 total £3393 so with my remainding current loan of £2928 I should be in the plus with £465????????? helpppppp

It clearly states interest accrued will be paid on ex gratia basis.
So should i accept this offer or am i going to be scrwd out of £465? and end up recalculating a new loan payment?
Could they pay me less than 8% interest?
I am over the moon and so happy but at the same time worried and concerned that i could have read all this wrong.
Any help would be so very much appreciated.
Thank you so much everyone in advance.

Marcas

di3004

Hi there Marcus

Great news on an offer, well done.:beer::T

Now in regards of calculations I have not got a clue but hopefully someone will be along soon to work these out for you.

If you want some further info on how the Financial ombudsman service (FOS) calculates, check this link out here:
http://forums.moneysavingexpert.com/showthread.html?t=1596473

However, if there is a big difference and the offer is far too low, you can always ask if they are able to higher the offer, if they don't you should be able to take this to the FOS to investigate, but the decision is entirely yours.

Good luck and with a bit of luck someone will come along to take a look at the figures for you.;)

marcas_2

Thanks Di,

I certainly cant grumble think i'm one of the lucky ones as i got an offer in 2 months. :j
However yeah really hope someone can help re what i will get back regarding interest.
it's weird as i read somewhere here another person today from same bank have received the same offer but stating they will get both the interest & the 8% interest & the compensation for distress.

i'm reading into my offer that I will at least get the 14.1% as it says they will pay what was actually charged in interest, and as long as it clears my loan off completely i will be chuffed but fingers crossed i will receive the additional 8% also.
I dont know if i should go to the fo & question it's vagueness and push for the full figure before accepting? or maybe i should just accept asap as i'm worried if they retract the whole offer and i could get further into debt.
does anyone have any knowledge on this and what would be advisable action?
thanks again
happily and confused:j:confused:
M

di3004

Your welcome Marcus.;)

You could request for them to send you a "full written breakdown of calculations" to make sure nothing is amiss.
Your entitled to have these on request.

Meanwhile, hopefully someone will check these out for you soon, all the best.;)