Success At Last! (Citi Financial)

ross21096

Hello,

Advanced apologies for the long post :rolleyes:

I first sent a template letter from this website to Citi Financial Europe PLC in September 2008 regarding mis-sold PPI on two loans (2nd loan is a re-structure of the 1st loan) taken out in 2006 and 2007.

The complaint has gone all the way and after a long wait, I have recieved a final decision from the Ombudsman.

Now, the reason I got into trouble with these loans in the first place is my non-existent mathematical brain! So perhaps someone here can help me understand what will happen next. I know I have WON! But cant quite work out if my loan will now be paid off and they owe me money? Or will it be reduced and I still owe them??

I Currently (at time of offer) have 19 Payments of £256 left to pay.

Background:

In June 2006, I approached Citi for a loan of £4000, and was sold a PPI with a premium of £742.95, with interest, should the loan run its full term amounts to £1,274.72

In January 2007, I applied for a further loan of £6000, and was sold a PPI with a premium of £1049.82, if the loan runs full term would amount to £1,778.88

The Ombudsman has ordered Citi Financial to:

a) For each loan:

• recalculate the loan and the payments to what they would have been if I had taken the loan without PPI; and
• repay me the amounts by which the payments actually made exceeded the recalculated payments; and
• pay me interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid; and
• recalculate the balance that would have been outstanding at the end of the loan (where applicable) had the recalculated loan not included PPI; and

b) Calculate how much of the balance that was carried forward to the subsequent loan related to the cost of the PPI policy taken out for the previous loan; and

• repay me all amounts paid under the subsequent loan in respect of the carried forward balance which related to PPI, including interest and charges; and
• pay me interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid;

c) In addition, for the current loan:

• CitiFinancial should restructure the loan or arrange for the loan to be restructured so that the balance is reduced to the level that it would have been if it had not included any of the costs of the mis-sold PPI policies, including any balance(s) carried forward under (b); and

d) Set out in writing for me, the calculations under (a), (b) and (c).

Plus £300 Compensation

If anyone is kind enough to work out what will happen for me then I am very grateful, if you need any more detail then please let me know :-)

marshallka

We could not work this out from what you have given but it is the correct way of redressing in that this will put you back into the position as if you never had the PPI and also they are adding 8% statutory interest and also a compensation payment. Well done.

Basically all that you have paid towards the PPI (actually paid to date!!) is being refunded to you and then the first loan would have had a balance of "x" amount if this PPi was not on it and then this amount (and not the amount you actually had carried over cause of the PPI) will be used as the opening balance of your new loan. Again with the new loan, this will be calculated as if you never had PPI again and then a new loan drawn up to reflect.

Seems like the adjudicator has ordered the firm to write their calculations down too so he/she will check and you can then query anything with them.