Egg Loan PPI - Partial Refund

CheekyLittleMonkey

Hi,
I'm after some advice and help regarding the following problem. In April - I cancelled PPI payments (which was missold in the first place). I got a reply saying "I'm pleased to confirm that I have now arranged for the Egg Loan Repayment Protection to be removed from your loan and for the maturity date to be reduced to approx 01/01/2012. I call Egg, told i need to write in, i fax them a letter telling them not to refund me because I refuse the offer and I will be taking it to the FOS as I am not happy. I send the same letter, same day via RD, told over the phone she will get refund dept to call me back, nobody called me. Finally get a response to said letter. "After listening to the call, Egg made the business decision in your case to refund the premiums paid and associated interest. Enclosed, a breakdown of the PPI for each month of your loan. The calculation is based on a mathematical formula called the Rule of 78. Loan taken out April 2005, over 7 years:

Principle Loan £10,000.00
Loan Payment Protection £3538.40 (Front loaded PPI)
Total Amount £13538.40
No of installments: 84
84 Payments of £202.54

I had paid 50 of the 84 installments when I cancelled the PPI in April. This is what they have offered me as a refund:

PPI premium on loan £3538.40
Less any PPI premium refund taken off loan £556.03
Refund of Interest charged on PPI premium at contractual loan rate £1116.37
Total Refund Due: £4098.74
They applied £388.65 to pay the arrears & sent the remaining amount of £3710.09 to nominated bank account.
The total loan works out around £17000 ( Principal Loan, + PPI, + Interest.
I believe that Egg have not offered me enough of a refund.

Is anyone good with figures at ascertaining what the true refund amounts should be?
I have already sent off docs to FOS. Thanks for your time and for reading this.

di3004

Hi and well done to you, that is fab.:beer:

Why don't you open a new standard basic account elsewhere, that has nothing to do with the bank you bank with now?
You could do that if you want to.;)

I am hopeless with maths........sorry....:o, but hopefully someone will be along soon to take a look for you, good luck.:beer:

CheekyLittleMonkey

Hi di3004,

I have opened a new account completely independant of that bank. In the meantime, the former account is still open as I am still paying off the debt o/d plus I am awaiting further SAR docs from them.

Thanks

di3004

CheekyLittleMonkey wrote: »

Hi di3004,

I have opened a new account completely independant of that bank. In the meantime, the former account is still open as I am still paying off the debt o/d plus I am awaiting further SAR docs from them.

Thanks

Good luck then.:beer:;)

marshallka

CheekyLittleMonkey wrote: »

Hi,
I'm after some advice and help regarding the following problem. In April - I cancelled PPI payments (which was missold in the first place). I got a reply saying "I'm pleased to confirm that I have now arranged for the Egg Loan Repayment Protection to be removed from your loan and for the maturity date to be reduced to approx 01/01/2012. I call Egg, told i need to write in, i fax them a letter telling them not to refund me because I refuse the offer and I will be taking it to the FOS as I am not happy. I send the same letter, same day via RD, told over the phone she will get refund dept to call me back, nobody called me. Finally get a response to said letter. "After listening to the call, Egg made the business decision in your case to refund the premiums paid and associated interest. Enclosed, a breakdown of the PPI for each month of your loan. The calculation is based on a mathematical formula called the Rule of 78. Loan taken out April 2005, over 7 years:

Principle Loan £10,000.00
Loan Payment Protection £3538.40 (Front loaded PPI)
Total Amount £13538.40
No of installments: 84
84 Payments of £202.54

I had paid 50 of the 84 installments when I cancelled the PPI in April. This is what they have offered me as a refund:

PPI premium on loan £3538.40
Less any PPI premium refund taken off loan £556.03
Refund of Interest charged on PPI premium at contractual loan rate £1116.37
Total Refund Due: £4098.74
They applied £388.65 to pay the arrears & sent the remaining amount of £3710.09 to nominated bank account.
The total loan works out around £17000 ( Principal Loan, + PPI, + Interest.
I believe that Egg have not offered me enough of a refund.

Is anyone good with figures at ascertaining what the true refund amounts should be?
I have already sent off docs to FOS. Thanks for your time and for reading this.

Your PPI element of the loan was 26.13% so 26.13% of your repayments went towards PPI being £52.92. You made 50 repayments before cancelling so you would be due this back in a cheque (you were out of pocket by this) being 50 x 52.92 and this totals £2646.00. Your total PPI would have been 52.92 x 84 being £4445.28 so the remaining amount of £1799.28 should be taken from your loan balance if you had not cancelled. As you cancelled before reclaiming for misselling you got a rebate against the PPI and interest remaining of £556.03 (this would have happened when you cancelled the PPI) and then you are still due an amount taken from the loan of the remaining £1243.25. This would then put you back into the position as if you never had the PPI.

HOWEVER, Egg have refunded you in this way in that they have refunded the whole premium back to you (although you have not actually PAID them the whole premium back yet!!!) with interest in the way of contractual which I believe is the interest on the PPI (your total PPI and interest would have been 52.92 x 84 = £4445.28) and they have refunded £3538.40 plus contractual interest being £1116.37 and I am assuming these totalled together being £4654.77 are the refund for my £4445.28. They must have taken an amount off your loan when you cancelled the PPI of £556.03 so they HAVE put you back into the position as if you never had the PPI although they have not altered your loan at all as they are refunding it to you in your hand instead. I do note that they have not added the 8% statutory interest onto this (unless I have it wrong and the contractual interest is that) so maybe you could confirm if you actually asked for it or not. The only confusing bit is what this contractual interest actually is. If its interest that was charged on the PPI then (or would be due on the PPI although you have not paid it all yet) then they have refunded it all correct.