how do i calculate the 8% interest on my ppi claims?

sharilou75

Hy there, just after some information regarding calculating interest on my ppi claims. In the process of waiting to hear from them, I have asked for 8% interest as stated in the template letters, but not sure on the correct way of calculating this... is it 8% interset overall or every year that you work on?, some accounts are closed, but some are still ongoing. thanks, look forward to any advice.

robbedofmymoney

sharilou75 wrote: »

Hy there, just after some information regarding calculating interest on my ppi claims. In the process of waiting to hear from them, I have asked for 8% interest as stated in the template letters, but not sure on the correct way of calculating this... is it 8% interset overall or every year that you work on?, some accounts are closed, but some are still ongoing. thanks, look forward to any advice.

assuming its for loan PPI a seperate calculation is made on every monthly premium paid up to the date of settlement of your claim, this is because they would have had your first premium longer than your last so the first would be due a greater amount of interest.

the calculation used on every monthly premium would be as follows


i have used the sum of £10 as an example premium to show the calculation


so for example, if you paid a premium of £10 and it was 24 months ago that the payment was made (march 2008) the 8% simple interest on this premium for this month would be as follows

£10 x 0.08 (which is your 8%) then this is multiplied by the number of years which is (24 months/12 = 2)

so the total calc for the interest on one months premium 24 months ago is

£10 x 0.08 x 2 = £1.60 interest this is then added to the premium making a refund of premium and interest of £11.60

its easier to put this calc onto a spread sheet so you just insert the figures into the fields to save keep doing loads of sums

i hope this helps, happy adding up!

i think there may be an interest calculator somewhere on this site, if there is i'm sure someone will post the link

marshallka

You can use a calculator that will do the work for you. There used to be one on here but no longer available but if you actually google bank charges calculator there are a few claims companies got it on their site and you just enter the amounts, dates or charges (I know this is PPI but it works the same) and it calculates for you and you just keep adding the charges onto a list for a running total OR if its only one amount then you can just do the one calculation to todays date.