PPI Calculations Please Help

TheRealDeal_2

I am completely useless with maths and really don't know how this works, I've tried on a few threads to work it out but I just cant manage it so I hope one of you good people could help me.

I have a Credit card with the PPI at £11.50

I paid this each month for 5 years.

The card is now defaulted and I no longer pay as I used the CCA loophole to make it unenforceable.

How do I calculate how much I am entitled to claim back on the PPI?

How is interest added etc. ?

Do I do 12 months x £11.50 then add 8% then times that by the 5 years ?


Can someone please do the calculations for me I am no good with numbers at all

Consumerist

Credit-card PPI is usually charged according to your outstanding balance, not a fixed amount. Was yours a fixed amount and, if so, why?

In general, calculating PPI refunds on credit-cards requires knowing the dates and amounts of every PPI premium paid over the period for which you are reclaiming. You need to calculate the balance which would have existed on your statements if the PPI had not been charged each month, reduce the interest charge and the balance going forward to the next month. Repeat this for every month for which you are claiming a refund. Should your adjusted balance be in credit at any time then compensation is paid at the equivalent of 8% pa simple for each day you would have been in credit (i.e. 8/365% per day). Compensation will effectively be the difference between the balance at the time you defaulted and the adjusted balance after removing PPI payments and interest charged on them.

Well, that's roughly how to do it but, frankly, this is a job best left to the bank to work out unless you are familiar with spreadsheets, have all your statements for the period and have lots of time. The FOS will ask the bank to do this for them and present you with the results.

I would leave it at that, if I were you. You can, however, pay £10 and send the bank a Subject Access Request to get the information from them. Since you have defaulted on the account, it is probable that the credit-card provider will take any compensation to reduce the debt, anyway, so you are not likely to see any compensation yourself unless it more that pays the debt you owe on the card.

Sorry I can't be more helpful.

TheRealDeal_2

I still cant quite get my head around that mate but you have made it seem alot more elaborate than I first though, I never realised that there was so many variants and conditions to this.

All I know is I paid £11.50 per month PPI and it was for 5 years so 60 months at £11.50. How do I add the 8% interest ? to the overall sum or to each year paid ?

I really cannot figure this out, I'm hoping someone on here can calculate if for me, I would really appreciate it.

Consumerist

As I have tried to explain, estimating PPI reclaims on credit cards is not as simple as for PPI paid up-front on loans.

The 8% pa simple interest is a trivial factor in the case of credit-card PPI. Most of the compensation will derive from the PPI payments themselves and the interest the card has charged on those premiums.

Since you have defaulted on the card, the card provider will probably use any compensation to reduce the debt on the card so that you are not likely to see any compensation yourself, anyway.

Consumerist

TheRealDeal wrote: »

All I know is I paid £11.50 per month PPI and it was for 5 years

If you want a really rough estimate, you can try this:-

Go to the MSE Savings calculator and plug in savings of £11.50 per month, at the APR charged by your card, for 5 years. The result will be very, very roughly what the compensation might be. Forget about the 8%.

I tried it with 20% APR and came up with £1,135 but you could try it for yourself.

Although your debt may be unenforceable in a court, that does not mean that the company is not entitled to chase you for the debt and, furthermore, it could also ruin your credit file indefinitely.

TheRealDeal_2

Consumerist wrote: »

If you want a really rough estimate, you can try this:-

Go to the MSE Savings calculator and plug in savings of £11.50 per month, at the APR charged by your card, for 5 years. The result will be very, very roughly what the compensation might be. Forget about the 8%.

I tried it with 20% APR and came up with £1,135 but you could try it for yourself.

Although your debt may be unenforceable in a court, that does not mean that the company is not entitled to chase you for the debt and, furthermore, it could also ruin your credit file indefinitely.

Thanks for all your help mate, that calculator is spot on. :T