Urgent

dawnmaud

I have received a letter from barclaycard upholding my ppi claim but not sure the figures are right.

A. refund of payments made by your PPI cover ? £2709.54
B. refund of interest charged on PPI premiums? £3895.58
C. 8%simple interest per annum? £542.12
D. Total refund payable=(a+ b+ c). £7147.24

I can't understand why B is higher then A


I only have 10 days from 25th January to accept this offer so any advice would be greatly appreciated..
Thanks

Dawn

dilus

dawnmaud wrote: »

I have received a letter from barclaycard upholding my ppi claim but not sure the figures are right.

A. refund of payments made by your PPI cover ? £2709.54
B. refund of interest charged on PPI premiums? £3895.58
C. 8%simple interest per annum? £542.12
D. Total refund payable=(a+ b+ c). £7147.24

I can't understand why B is higher then A


I only have 10 days from 25th January to accept this offer so any advice would be greatly appreciated..
Thanks

Dawn

Hi Dawn,
I think this is due to the very high interest rates on credit cards. The PPI is put onto the card balance every month and if you have a high balance and don't pay in full each month the interest soon ramps up. If you have had the card for a long time the interest that you have paid on the PPI alone can be huge. I wouldn't worry about it, accept it as correct and well done

tifo

dawnmaud wrote: »

I can't understand why B is higher then A

Because they charged interest at the higher card rate and compounded (interest on balance from previous month) and are paying at the lower statutory rate NOT compounded.