Calculating refund Confusing, Please help !!! (update)

Gordie1975

Hi there, today i received a letter from the financial ombudsman saying Lloyds had aggreed to make an offer of settlement based on the ombudsmand "general approach",which i have a copy of attatched to the letter.

I need to sign an acceptance form and send back to the ombudsman, who will then forward it to Lloyds.

However i am clueless to working out how much i should be getting back, i have read the working it out thread, but i still dont get it.

If i post my detail here, i wonder if some kind soul would work it out roughly, i would be most grateful.

Loan date :1/5/06
total loan inc interest £10,813.20
cash loan inc interest £8,349.00
LPI inc interest £2374.20
payments 60
APR 19.9%
total mthly paymt £180.22 (39.57 insurance and 140.65 loan)

I have taken (i think) 3 repayment holidays, so i reckon i have made 47 payments so far, the insurance is still in effect and i am still paying it, so i will be paying it again come the 1st of sept.

I also have another loan i comlaned about the insurance on also, however i now cant recall if i paid it off early, or wether it went to term, so there is no point me giving you the details.

I looked at it and worked out that had the insurance not been taken out, i would have paid it off last month, so does that mean i get 47x 39.57 = 1859 back?

the caslculation thing says 8% simple per year, how does that work per year, surely it wouldnt be 8% of £1859, as that wouldnt be for every year surely?

Any help would be apprciated, thanks Gordon.

robbedofmymoney

Gordie1975 wrote: »

Hi there, today i received a letter from the financial ombudsman saying Lloyds had aggreed to make an offer of settlement based on the ombudsmand "general approach",which i have a copy of attatched to the letter.

I need to sign an acceptance form and send back to the ombudsman, who will then forward it to Lloyds.

However i am clueless to working out how much i should be getting back, i have read the working it out thread, but i still dont get it.

If i post my detail here, i wonder if some kind soul would work it out roughly, i would be most grateful.

Loan date :1/5/06
total loan inc interest £10,813.20
cash loan inc interest £8,349.00
LPI inc interest £2374.20
payments 60
APR 19.9%
total mthly paymt £180.22 (39.57 insurance and 140.65 loan)

I have taken (i think) 3 repayment holidays, so i reckon i have made 47 payments so far, the insurance is still in effect and i am still paying it, so i will be paying it again come the 1st of sept.

I also have another loan i comlaned about the insurance on also, however i now cant recall if i paid it off early, or wether it went to term, so there is no point me giving you the details.

I looked at it and worked out that had the insurance not been taken out, i would have paid it off last month, so does that mean i get 47x 39.57 = 1859 back?

the caslculation thing says 8% simple per year, how does that work per year, surely it wouldnt be 8% of £1859, as that wouldnt be for every year surely?

Any help would be apprciated, thanks Gordon.

hi,

you are correct, you will get back the payments you have made which is 47 x £39.57 = £1859, then you get 8% simple, this amounts to approx £297. so in total you should get back £2,156

then your monthly loan repayments will go down to £140 per month for the remaining term of your loan.

well done on your success
:beer::beer:

di3004

Well done Gordie1975, that is fab news.:T

Congratulations!:beer:

Gordie1975

robbedofmymoney wrote: »

hi,

you are correct, you will get back the payments you have made which is 47 x £39.57 = £1859, then you get 8% simple, this amounts to approx £297. so in total you should get back £2,156

then your monthly loan repayments will go down to £140 per month for the remaining term of your loan.

well done on your success
:beer::beer:

Thank you


I think im right with most of it then, so they will probably just clear the loan and give me the remaining.

However i am still confused about this "simple interest thing"

The letter says "add interest on each of these net payments at a rate of 8% per year simple from the date of each payment to the date the compensation is made".

Now to me (no expert i admit) that means that i should get 8% of all payments, every year from the date the payment was made til the day they pay me back?

Meaning the first payment i paid in 2006 for £39.57, i should get 8% for 2006, 8% for 2007, 8% for 2008, 8% for 2009, meaning that i should get £52.21 back for that first PPI insurance, then evry one after that, the 8% interest would reduce slightly as the money has been in their possession for slightly less each time as the date gets nearer to today.

Im probably wrong with that, its just how it is written on the sheet.

So is it based on get the whole ammount and add 8%, or is it 8% every year they have the money?

Sorry to confuse, im even confusing myself now.:rotfl:

robbedofmymoney

Gordie1975 wrote: »

Thank you


I think im right with most of it then, so they will probably just clear the loan and give me the remaining.

However i am still confused about this "simple interest thing"

The letter says "add interest on each of these net payments at a rate of 8% per year simple from the date of each payment to the date the compensation is made".

Now to me (no expert i admit) that means that i should get 8% of all payments, every year from the date the payment was made til the day they pay me back?

Meaning the first payment i paid in 2006 for £39.57, i should get 8% for 2006, 8% for 2007, 8% for 2008, 8% for 2009, meaning that i should get £52.21 back for that first PPI insurance, then evry one after that, the 8% interest would reduce slightly as the money has been in their possession for slightly less each time as the date gets nearer to today.

Im probably wrong with that, its just how it is written on the sheet.

So is it based on get the whole ammount and add 8%, or is it 8% every year they have the money?

Sorry to confuse, im even confusing myself now.:rotfl:

you are along the right lines, however you need to bear in mind that the 8% is anula and the premium is monthly so they need to be aligned when carrying out the calculation

the calculation has to be applied to each and every payment.

you take the premium, multiply it by 0.08 (8%) and then multiply the total by the number of years they have had that premium, so if they have had 1 premium for 24 months, thats 24/12 = 2 years.

this formula has to be applied to each and every premium

so as an example 8% simple on 39.57 paid 47 months ago would be

39.57 x 0.08 = £3.17
47/12 = 3.91

£3.17 * 3.91 = £12.39 for this premium

this figure will then reduce for each and every premium after that.

you just then add up all the totals, (or do what i have and put in a spreadsheet that autocalcs)

i hope this helps explain how its done

Gordie1975

Hi there, sorry about this, i know i'm a pain but i've just realised that the information i was using and provided you all was probably inaccurate.

I never thought about the fact that because the original loan had PPI and was consolodated into the second that that would affect the ammount the second loan should have been.:o

Heres the situation in simplest terms i can explain it.

In 2005 i got a loan over 60 months with PPI
The loan agreement says
Cash loan:£732
Loan for existing debts £1700 (this was for a credit card)
PPI Premium (cash price) £619
Total PPI inc Interest £916
£15.28 was paid to monthly PPI

16 (ish) months later i got a consolidation loan and they paid off the loan above and added the remaining balance to the next loan(also with PPI)

According to the letter i received Lloyds gave me a PPI rebate of £290 which was used to reduce my final settlement figure.

Now, this next loan is basically the same as i mentioned earlier in the thread.

Loan date :1/5/06
total loan inc interest £10,813.20
cash loan inc interest £8,349.00
LPI inc interest £2374.20
payments 60
APR 19.9%
total mthly paymt £180.22 (39.57 insurance and 140.65 loan)

I called them earlier and i have paid 49 payments of 180.22 to the loan above.

With this new information, i cant work out how and how much of a rebate i am due.

can someone please give me a rough i idea of how much a refund i will get or how much the current loan will be reduced by.

I know it was done for me earlier, but i think this new information may change the whole thing.

Thank you all so much for the help.

Oh and i presume since they never mentioned it in their letter that Lloyds wont be paying me any compensation.?

Thank you all once again.:T

Gordie1975

Bump:o

di3004

Robbedofmymoney and/or Marshallka, are you about please?:D

Thanks both XX:j

amersall

Gordie1975 wrote: »

Hi there, sorry about this, i know i'm a pain but i've just realised that the information i was using and provided you all was probably inaccurate.

I never thought about the fact that because the original loan had PPI and was consolodated into the second that that would affect the ammount the second loan should have been.:o

Heres the situation in simplest terms i can explain it.

In 2005 i got a loan over 60 months with PPI
The loan agreement says
Cash loan:£732
Loan for existing debts £1700 (this was for a credit card)
PPI Premium (cash price) £619
Total PPI inc Interest £916
£15.28 was paid to monthly PPI

16 (ish) months later i got a consolidation loan and they paid off the loan above and added the remaining balance to the next loan(also with PPI)

According to the letter i received Lloyds gave me a PPI rebate of £290 which was used to reduce my final settlement figure.

Now, this next loan is basically the same as i mentioned earlier in the thread.

Loan date :1/5/06
total loan inc interest £10,813.20
cash loan inc interest £8,349.00
LPI inc interest £2374.20
payments 60
APR 19.9%
total mthly paymt £180.22 (39.57 insurance and 140.65 loan)

I called them earlier and i have paid 49 payments of 180.22 to the loan above.

With this new information, i cant work out how and how much of a rebate i am due.

can someone please give me a rough i idea of how much a refund i will get or how much the current loan will be reduced by.

I know it was done for me earlier, but i think this new information may change the whole thing.

Thank you all so much for the help.

Oh and i presume since they never mentioned it in their letter that Lloyds wont be paying me any compensation.?

Thank you all once again.:T

You will get help with this, just hang on x

marshallka

Will try and bump for robbedofmymoney as he has been working on it before.:)

Gordie1975

Thank you both, he may be on holiday, lucky sod, i need to work.:mad: