Barclays PPI offer - advice

KIMY

I am wondering if Robbedformoney or anyone can give me some advice for a friend. He has a Barclays loan that he took out in 2006 for £12100 over 60 months(the application included PPI cover with a premium of £3489 which was added to loan and contracted monthly instalments of £58.15) he was miss sold PPI and wrote to Barclays he received a letter today stating based on there findings, they have upheld the complaint and state therefore wish to offer to place him into the position he would now be in had PPI not been added to original loan.
The letter states to acheive this it will be necessary to refund the original premium to the loan,plus the interest thereon, thus reducing the debt. It will then be necessary to reverse from the loan PPI payments made to date(which will increase the loan balance) and replace them to his current account.
Present loan balance - £3105.48
Less PPI Premiums - £2648.39
Less PPI interest paid £818.47
Plus PPI payments reversed - £2907.50
Residual balance - £2546.12

They state send new forms of agreement for a new loan approx £2500 at 11.9% this would be for 12 months which is close to remaining term.
Then it states we are prepared to meet your claim for an addittional 8% interest on premiums and will arrange to credit his current account with appropriate sum of £494.28.
I do not understand how can he be awarded PPI refund of all paid + interest totalling over £3500 and he only has balance owing £3105.48 but state needs new loan £2500?
Can someone please advice

:T

robbedofmymoney

KIMY wrote: »

I am wondering if Robbedformoney or anyone can give me some advice for a friend. He has a Barclays loan that he took out in 2006 for £12100 over 60 months(the application included PPI cover with a premium of £3489 which was added to loan and contracted monthly instalments of £58.15) he was miss sold PPI and wrote to Barclays he received a letter today stating based on there findings, they have upheld the complaint and state therefore wish to offer to place him into the position he would now be in had PPI not been added to original loan.
The letter states to acheive this it will be necessary to refund the original premium to the loan,plus the interest thereon, thus reducing the debt. It will then be necessary to reverse from the loan PPI payments made to date(which will increase the loan balance) and replace them to his current account.
Present loan balance - £3105.48
Less PPI Premiums - £2648.39
Less PPI interest paid £818.47
Plus PPI payments reversed - £2907.50
Residual balance - £2546.12

They state send new forms of agreement for a new loan approx £2500 at 11.9% this would be for 12 months which is close to remaining term.
Then it states we are prepared to meet your claim for an addittional 8% interest on premiums and will arrange to credit his current account with appropriate sum of £494.28.
I do not understand how can he be awarded PPI refund of all paid + interest totalling over £3500 and he only has balance owing £3105.48 but state needs new loan £2500?
Can someone please advice

:T

hi,

right, what they are doing is spot on, but they do not explain it very well.

they will do the calc listed above which will result in your friend having a new laon for £2,546 over the remaining loan term.

then they will get 2 payments into their bank account.

one for the premiums they have paid including the interest on them of £2,907, and the other for the 8% simple interest on this amount of £494

so in total you frind will get back into his/her bank account £3,401 and then still have the remainder of the original loan without ppi of £2546 to pay.

they just don't word it very well.

di3004

KIMY wrote: »

I am wondering if Robbedformoney or anyone can give me some advice for a friend. He has a Barclays loan that he took out in 2006 for £12100 over 60 months(the application included PPI cover with a premium of £3489 which was added to loan and contracted monthly instalments of £58.15) he was miss sold PPI and wrote to Barclays he received a letter today stating based on there findings, they have upheld the complaint and state therefore wish to offer to place him into the position he would now be in had PPI not been added to original loan.
The letter states to acheive this it will be necessary to refund the original premium to the loan,plus the interest thereon, thus reducing the debt. It will then be necessary to reverse from the loan PPI payments made to date(which will increase the loan balance) and replace them to his current account.
Present loan balance - £3105.48
Less PPI Premiums - £2648.39
Less PPI interest paid £818.47
Plus PPI payments reversed - £2907.50
Residual balance - £2546.12

They state send new forms of agreement for a new loan approx £2500 at 11.9% this would be for 12 months which is close to remaining term.
Then it states we are prepared to meet your claim for an addittional 8% interest on premiums and will arrange to credit his current account with appropriate sum of £494.28.
I do not understand how can he be awarded PPI refund of all paid + interest totalling over £3500 and he only has balance owing £3105.48 but state needs new loan £2500?
Can someone please advice

:T

Hi KIMY

Robbedofmymoney will be here soon, will let him know for you anyway.;)

di3004

LMAO, oops he is far quicker than me, missed your post Robbedofmymoney :rotfl::rotfl::rotfl:;)

robbedofmymoney

Kimy

just read the bottom bit of your posting about your concerns, which i did not answer earlier.

it is correct,

the outstanding amount on the current loan is approx £3,100 this includes however many months of loan repayments and ppi repayments left to make, so if there were 12 more months to go, £58.15 x 12 would be the ppi element and the remainder would be the original loan element.

what barclays have offered is correct.

KIMY

Many thanks Robbedofmoney, my friend will be delighted and £3400 in his bank will make such a difference to him.
Thanks for all your help once again you are great
:beer::T

di3004

He is fab isn't he?:T:j:beer: