MBNA offer for PPI

Sleepygirl2092

I had a letter from MBNA today confirming that my PPI complaint has been upheld :j

Their offer is £1213.35 for the total amount of PPI premiums charged since the sale date and £6006.07(!) total amount of associated interest. This sounds like an awful lot of interest and before I get carried away with the excitement I thought I'd ask if this sounds likely or whether there might have been a slip of the finger by MBNA when calculating the refund amount!

If any kindly person has any thoughts I'd be very grateful

coolsolution

Depends how long you have been paying the ppi.if it is very long then i wouldn't be surprised.

Sleepygirl2092

It was for a period of three years from 2003 to 2006 on a credit card balance of about £8000. I cancelled the PPI when I realised it was on the account and it was not relevant to me. Are calculations ever made wrongly? Just trying to make sure I haven't got over excited

tifo

Sleepygirl2092 wrote: »

It was for a period of three years from 2003 to 2006 on a credit card balance of about £8000.

Then it seems wrong. It's probably £606.07.

Sleepygirl2092

I had a feeling it might be too good to be true! The balance on the account was at nearly the full £8000 limit for the three years.

In their letter it says "we have notionally reconstructed your statement balances by removing the PPI premiums and associated interest. This includes interest arising because the ongoing monthly balance on your account was higher than it would have been if you had made the same payments without PPI".

I've been trying to get my head around what this actually means but have to be honest and say I'm struggling.

Nevertheless I'm delighted to be getting back anything at all

Sleepygirl2092

I've thought about this a bit more and wondered if the best thing to do would be to contact MBNA to say I think the calculation might be wrong. Does that sound like the best thing to do? They haven't included a telephone number on their offer letter and there are a lot of different numbers on the website so I'm not sure who I need to ring. Any thoughts?

dilus

Sleepygirl2092 wrote: »

I had a feeling it might be too good to be true! The balance on the account was at nearly the full £8000 limit for the three years.

In their letter it says "we have notionally reconstructed your statement balances by removing the PPI premiums and associated interest. This includes interest arising because the ongoing monthly balance on your account was higher than it would have been if you had made the same payments without PPI".

I've been trying to get my head around what this actually means but have to be honest and say I'm struggling.

Nevertheless I'm delighted to be getting back anything at all

Hi sleepygirl,
Basically they have gone over the whole history of the card and restructured it as if you were not paying PPI and calculated the redress on that basis. As tifo says the interest part sounds wrong (probably a big typo) as you only get interest when the card is in credit or would have been, had the PPI not been added, with a big balance this would have rarely happened, if at all.
Good result and be careful if they do give you £6k in interest as it's almost certainly wrong. Well done

dilus

Sleepygirl2092 wrote: »

I've thought about this a bit more and wondered if the best thing to do would be to contact MBNA to say I think the calculation might be wrong. Does that sound like the best thing to do? They haven't included a telephone number on their offer letter and there are a lot of different numbers on the website so I'm not sure who I need to ring. Any thoughts?

Wait to see what size cheque arrives If you phone up to get them to re calculate it will hold up proceedings

Sleepygirl2092

dilus wrote: »

Hi sleepygirl,
Basically they have gone over the whole history of the card and restructured it as if you were not paying PPI and calculated the redress on that basis. As tifo says the interest part sounds wrong (probably a big typo) as you only get interest when the card is in credit or would have been, had the PPI not been added, with a big balance this would have rarely happened, if at all.
Good result and be careful if they do give you £6k in interest as it's almost certainly wrong. Well done

Thanks dilus. The associated 8% they have calculated as £1.01, the rest is just listed as "associated interest". It's a shame they don't give you more of a breakdown of how they arrived at the figures - it would be so much easier to understand then!

I'll take your advice and wait for the cheque to arrive before phoning them. I assume then that I just repay them whatever the difference is?

The card was still at the £8000 mark until about a year ago when I took a second job to start paying it off. Whatever I get will mean one step closer to being MBNA free!

dilus

Sleepygirl2092 wrote: »

Thanks dilus. The associated 8% they have calculated as £1.01, the rest is just listed as "associated interest". It's a shame they don't give you more of a breakdown of how they arrived at the figures - it would be so much easier to understand then!

I'll take your advice and wait for the cheque to arrive before phoning them. I assume then that I just repay them whatever the difference is?

The card was still at the £8000 mark until about a year ago when I took a second job to start paying it off. Whatever I get will mean one step closer to being MBNA free!

You have done well to get that breakdown. I never got one they just sent a cheque and I have had to ask for a breakdown to find out what tax I am liable for on the 8% interest.
Your 8% interest figure sounds spot on, I can't compare my redress to yours to comment much on the "associated interest of £6k" Not sure what they are on about with this you won't have paid an extra £6k in interest on a card over 3 years even with a balance of £8k on it :eek: but with interest rates on cards as they are I COULD BE WRONG Will be interesting to know when you get the cheque

dilus

With my redress from MBNA I got a cheque for £3.5k and was only expecting £1.5k max and due to not having a breakdown I am in the dark as to why, so I am saying anything is possible