PPI Calculation

Sharon_Connelly

I have been offered a full refund against my PPI claim, but don't fully understand how it has been calculated. There is 2 loans in question that First Plus are offering to refund the PPI against.

The first PPI was for £8326.60, and they have offered me £852.80 + £98.17. They say they have calculated as follows:-
a) Cost of PPI Policy £8326.60
b) Interest incurred £158.92
c) Less Early Settlement £7632.72
d) Total Refund (a + b - c) £852.80
e) Plus 8% interest p.a. £98.17

The second PPI was for £11265.40, and they have offered me £11491.06 + £3800.71. They say they have calculated as follows:-
a) Cost of PPI Policy £11265.40
b) Interest incurred £2400.67
c) Less Early Settlement £1779.01
d) Total Refund (a + b -c) £11491.06
e) Plus 8% interest p.a. £3800.71

Are they allowed to deduct the Less Early Settlement sum? When we took the second loan out we settled the first PPI of £8326.60 in full and I have a document confirming this and again with the second loan.

Surely the whole point is the PPI has been mis-sold and they should refund the cost of both PPI's in full with interest?

Can you please help me in trying to understand this.

Thanking you in advance.

di3004

Hi and welcome.

Well done on your success!:beer:

I am not the one for calculations, but hopefully someone will be along soon to check these out for you, good luck.

dilus

Sharon_Connelly wrote: »

I have been offered a full refund against my PPI claim, but don't fully understand how it has been calculated. There is 2 loans in question that First Plus are offering to refund the PPI against.

The first PPI was for £8326.60, and they have offered me £852.80 + £98.17. They say they have calculated as follows:-
a) Cost of PPI Policy £8326.60
b) Interest incurred £158.92
c) Less Early Settlement £7632.72
d) Total Refund (a + b - c) £852.80
e) Plus 8% interest p.a. £98.17

The second PPI was for £11265.40, and they have offered me £11491.06 + £3800.71. They say they have calculated as follows:-
a) Cost of PPI Policy £11265.40
b) Interest incurred £2400.67
c) Less Early Settlement £1779.01
d) Total Refund (a + b -c) £11491.06
e) Plus 8% interest p.a. £3800.71

Are they allowed to deduct the Less Early Settlement sum? When we took the second loan out we settled the first PPI of £8326.60 in full and I have a document confirming this and again with the second loan.

Surely the whole point is the PPI has been mis-sold and they should refund the cost of both PPI's in full with interest?

Can you please help me in trying to understand this.

Thanking you in advance.

Hi Sharon,
All appears to be kosher to me, it's obvious that loan 1 was paid off using loan 2 very early into the term, you had only paid roughly £700 in PPI before paying it off, so you cant expect to get the £8,300 back.
Loan 2 obviously ran for a lot longer, hence the higher redress on this one. My feeble attempt to explain I know, maybe someone could explain it better

amersall

Are they allowed to deduct the Less Early Settlement sum? When we took the second loan out we settled the first PPI of £8326.60 in full and I have a document confirming this and again with the second loan.

They deduct this because they took this amount off your settlement figure for the ppi.

Dilus is correct,your redress is full redress.You only get ppi back that you paid to date and not the whole ppi,as the loans did not go to term end.

:j:j:jLove a win with FP :j:jWELL DONE :T:T:T:T:T

Sharon_Connelly

thanks for your help guys:A:A:A:T:T

amersall

You are very welcome xxxx