Mortgage Protection Policy - reclaiming PPI

LindaF_2

RBS have agreed to repay the the payments made on this policy following a "mis-selling" claim.

I need confirmation that they may have calculated incorrectly.

They have calculated the refund
Then added gross interest at FOS rate added to each overpayment to date
Then deducted tax at 20% giving net FOS interest which they have then added to the refund giving the total due

If this works the same way that repayments are calculated on loans and credit cards then the gross interest should be added to the refund of premiums
then 8% standard interest should be added and it is on that amount that the 20% tax should be deducted from

Am I right to advise them that they have missed that step and they should recalculate the amount due

LindaF

di3004

Bumping thread up for you, well done on your success!;)

ALIBOBSY

The tax should only be on the 8% "extra" interest, but most banks roll up the premiums paid and the interest paid into one "refund" figure with the 8% as a separate figure. You can ask for a full breakdown and calculation to check if you like. The FOS guidence suggests the banks should provide the calculation as standard, but given the numbers they are dealing with most aren't unless they are asked.

Ali x

NB if you are a non tax payer you can claim the tax back at the end of the year

LindaF_2

Many thanks for the replies. i have asked them to confirm details of the calculations


lindaF