Company pre-empting future PPI reclaims...?

willing2learn_3

Hi there

I was going to help my mother claim back PPI on a loan, however it seems the company itself have already pre-empted things. They've written to my mum off their own back stating that they expect they can make redress so that she would be in the same position as she would have been had she never claimed the PPI on her loan.

The cost of the PPI was approx £10,000. How does this work, would she really get ten grand back or would it be more because of interest paid, etc. Just curious now as is my mum.

I know that sounds good - but she really needs a lot of help before her finances will be good - so if she does get this it will just make life easier - she won't be going on any holidays or cruises

amersall

Is this loan current or settled?.
If it is settled,the redress will be the whole ppi to come back,less the rebate of ppi for early settlement,and the 8%,to work the 8% out,look here.
http://www.moneysavingexpert.com/reclaim/bank-charges#step2

Go on the bank charges calculator and put each ppi monthly payment in,the year and the amount,the calculator will total the ppi redress and the 8%,then deduct the rebate for early settlement.

If the loan is still running,the ppi monthly payments made to date will be returned with 8%( use the calculator again) the loan will reduce by the ppi total amount and the monthly payment will reduce by the ppi amount.

willing2learn_3

Amersall

thanks for the info - i will take a look in a while - the loan is not settled - it's an ongoing 'mortgage' type loan secured on her home - which she is now selling. The PPI however expired 2 years ago - it was for 3 years only.

I will check your info soon - thanks!!

amersall

You are welcome.

amersall

willing2learn wrote: »

Amersall

thanks for the info - i will take a look in a while - the loan is not settled - it's an ongoing 'mortgage' type loan secured on her home - which she is now selling. The PPI however expired 2 years ago - it was for 3 years only.

I will check your info soon - thanks!!

This will give your mum a better settlement figure for when her house is sold,the original ppi of £10000 will come off the balance of the loan,make sure they do this before the account is settled.

willing2learn_3

Problem is, she is about to exchange contracts....it may already have been done....and the documents for the PPI are sat here on my desk - the PPI company also stated that they would take up to 8 weeks to come to a decision.

I will read your refs soon - i'm kind of in the middle of something and keep darting back to the computer...LOL!

willing2learn_3

Ok that was a bit daft of me - I was doing too many things at once, lol! Basically it's unlikely to be sorted out before her house sale but it will be sorted out afterwards anyway. thanks again