HSBC offer

-BA-

Hi all. Very pleased to have received an offer from HSBC this morning. I just wanted to throw a few numbers at the forum to see if the figures look about right.

The original loan was for about £24k and they have offered me a redress of £6600 which is comprised of £4800 PPI premiums and £1800 taxable interest at 8%. I completed payments on the loan so there is no outstanding balance to them. Do these figures look about right?

TIA

dilus

-BA- wrote: »

Hi all. Very pleased to have received an offer from HSBC this morning. I just wanted to throw a few numbers at the forum to see if the figures look about right.

The original loan was for about £24k and they have offered me a redress of £6600 which is comprised of £4800 PPI premiums and £1800 taxable interest at 8%. I completed payments on the loan so there is no outstanding balance to them. Do these figures look about right?

TIA

Hi BA, you will need to post, if you know a) How much per month were you paying for just the PPI b) over how many months was the loan and did it go full term.
If you can supply that info I can give you an idea if the offer is correct

bandofbrothers

Bear in mind that you will need to pay the inland revenue some of the 8% interest as its gross !

-BA-

dilus wrote: »

Hi BA, you will need to post, if you know a) How much per month were you paying for just the PPI b) over how many months was the loan and did it go full term.
If you can supply that info I can give you an idea if the offer is correct

Hi dilus. I have found the original paperwork and the amounts seem to be right bar a few pence.

Initial monthly payment was £66.95 with 71 further payments of £66.98. The charge for this was also £962.53 giving a grand total of £4822.53. They are offering £4822.46 but I can live with that. On top of that they are offering £1816.46 as 8% taxable interest and it is this that I am not sure how to work out. I would guess it works out on some kind of diminishing scale as the balance reduced over the years. I really don't understand APR fully.

Appreciate the replies and thanks for the heads up bandofbrothers. I had actually called HMRC earlier to get an idea of what I would be liable for and it is around £360.

dilus

-BA- wrote: »

Hi dilus. I have found the original paperwork and the amounts seem to be right bar a few pence.

Initial monthly payment was £66.95 with 71 further payments of £66.98. The charge for this was also £962.53 giving a grand total of £4822.53. They are offering £4822.46 but I can live with that. On top of that they are offering £1816.46 as 8% taxable interest and it is this that I am not sure how to work out. I would guess it works out on some kind of diminishing scale as the balance reduced over the years. I really don't understand APR fully.

Appreciate the replies and thanks for the heads up bandofbrothers. I had actually called HMRC earlier to get an idea of what I would be liable for and it is around £360.

Hi BA, yes the 8% is worked out using a formula and a spreadsheet and like you say it diminishes each month as you pay off the loan. I'll work it out for you later and post back before the end of the night (about to watch a TV prog)

dilus

Hi BA, I have worked out the 8% interest using a recognised formula and your figure of £1816.46 seems to be high (even taking into account having to pay tax on it) which is unusual as it normally works out the opposite. If I were you I would bite their arm off and accept
I seriously think different banks work out the 8% using different formulas :exclamati

-BA-

dilus wrote: »

Hi BA, I have worked out the 8% interest using a recognised formula and your figure of £1816.46 seems to be high (even taking into account having to pay tax on it) which is unusual as it normally works out the opposite. If I were you I would bite their arm off and accept
I seriously think different banks work out the 8% using different formulas :exclamati

Form is signed and will be going in the post tomorrow. Appreciate you taking a look at the figures for me. Thanks v. much. :beer:

dilus

-BA- wrote: »

Form is signed and will be going in the post tomorrow. Appreciate you taking a look at the figures for me. Thanks v. much. :beer:

Your welcome

Sunny1975

Hi,

I just wanted to share my experiences with HSBC.

I initially complained about mis-sold PPI in July 2010. They managed to drag it our until the JR, and finally after getting nowhere with HSBC for some months following the JR, I went to the FOS. The judgement from the FOS was found in my favour on 05/08/11. Since then, I have had 1 breakdown letter from HSBC on 07/10/11. It had the correct references on it, but someone else's name. I sent this back requesting that it be corrected. I called HSBC on 14/10/11 to check on the progress and was told 'yes the letter was a mistake, your revised letter will be out shortly'......

After chasing HSBC again and still no letter, I have now gone back to the FOS to request that they pursue HSBC for the correct breakdown.

I find it really hard to take after being so patient, that it seems still some way away from being resolved after 15 months of waiting.

Anyone else had such treatment?

S

andybarca

i have received my offer for the PPI on my HSBC loan, just short of £4000. However they have stated that they are only paying back the premiums I paid plus interest. I thought they were supposed to look at the diffences in settlement figures aswell? Or have I just mis-read the fos guidlines bit? any advice would be great.