Are MBNA ripping me off?

sorryitsme

Hi all, I have just had my claim upheld by MBNA and have been awarded the following:

Total PPI premiums charged £332.55
Total interest associated with PPI £476.85
Total 8% interest £464.11

My card was 20.3%apr and I had PPI on it from 1998-2001.

Does the associated interest/compound look on the low side as £5 paid in 1998 would mean they have to return £50.26 today?

Any help to know if the figures need recalculating would be much appreciated, as I won't bank the cheque until I get the correct amount.

Thanks in advance :A

magpiecottage

Without seeing the full calculations and all your statements we cannot tell. However, the calculations are (or should) treat each premium as an extra payment to the account. Where this results simply in a lower balance, the interest charged on it is also reversed (at the prevailing interest rate). Any periods where it results in a positive balance, that balance receives 8% per annum simple interest.

This means you would only get 8% interest on every premium for the entire period if you paid the statements off in full every single month.

toddle2u

MBNA have always been pretty accurate with their caclulations in my experience