Lloyds Credit card ppi ....Ok to accept offer? Not sure how interest works..

rachaelsmith82

Hi all ,


My partner has had a credit card and been paying ppi insurance for the past 10 years approx of I would say approx £25ish a month . We had sent off the form about 10 weeks ago and have received an offer from Lloyds today of £2800 .


The letter says it represents a refund of all the ppi premiums paid ( inclusive of interest, plus simple interest at 8 % for any period where the account was in credit.


The only calculations within the letter sent show as :


Difference between the actual and revised balance =£2,793.04

Interest at 8%, calculated up until 26 January 2012 = £39.38

Total = £2832.42


Obviously we are over the moon with the offer but I thought maybe there would more detailed calculations? Is this normal?


Also, how is interest calculated? £39.38 does not seem much over so many years - though i have tried looking into ppi interest on this site and did see something that might be relevant to do with Credit card ppi repayments in particular that might be a reason it is so low on the interest .

If anyone has any thoughts would be interested to hear !


Thanks in advance


Rachael

amersall

The interest is low,as they only give this on a credit balance.
You could ask them for a better breakdown to put your mind at rest,have they paid the whole 10 years back? if they have you are very lucky,some only go back 6 without proof of ppi paid previously.

Well done on your win though.