NATWEST PPI Can anyone advise please.

amersall

Banana_Hammock wrote: »

Hi all,

Ive just been looking at other PPi cases and whilst mine are now at the calculations stage with Natwest Ive had a pop at trying to work out what figure they may come out with,

Is it worked out at each PPi premium repaid + 8% added to each repayment interest = Amount to be offered ?

Ie..

Loan 1 .. £105.57 PPi p/m + 8% of £8.45 x 14 months paid = £1,596.28

Loan 2 .. £99.58 PPi p/m + 8% of £7.97 x 28 months paid = £3,011.40

Total on 2 loans alone would be £4,607.68 ?

Or have I not calculated proper ?

Just trying to estimate so I know what to expect to make a decision.

Thanks

Hi, as these were consolidated loans you would have been given a rebate of the PPI for each loan when you settled them, when they calculate, you will get the whole PPI amount back for each loan less the rebates they gave you, you then get the PPI back that you actually paid to settlement date of each loan plus the remaining PPI after the rebate they gave that you paid back in each settlement are you still with me? :rotfl:
The 8% is on a decreasing scale for each monthly PPI payment from the start date of each loan to the date they pay you out, the nearer you get to the settlement date, the less the 8% is, the 8% is taxable if you are a taxpayer.
The tax on the 8% amounts may be taken off by the bank before they pay you this, if they do and you are not a taxpayer then you have to contact HMRC to get this tax back, if you are a taxpayer and the bank do not take this tax off you have to contact HMRC and pay this.

Banana_Hammock

Thats great, Im same as I was told on Thursday I was awaiting something from them and 2 letters came, I opened them both from Natwest expecting news and neither were related, well one was saying they apologise I was unhappy but nothing of any offer, the wait goes on : (

Hope your offer has made you happy x

Banana_Hammock

Thanks Amersall, Sorry lost me but thats not difficult for me, I thought Id just get back basically each monthly payment I paid plus the 8% but that was a rough work out as I dont fully understand it all, I am a tax payer being Self Employed I pay half yearly so I will have to wait and see how Natwest do things, they said on the phone they were checking 6 accounts and at the calculations stage so cant be too much longer i dont expect.

Thanks for replying x

Banana_Hammock

Amersall,

If you have the time could you post a quick example of what you mean regarding the PPi scenario on calculations on how a figure is reached.

Sorry to sound daft but I read so many posts and struggle to understand it all.

Many thanks.

[Deleted User]

Banana_Hammock wrote: »

If you have the time could you post a quick example of what you mean regarding the PPi scenario on calculations on how a figure is reached.

Basically, you do indeed get back all the PPI payments you have made. Remember, though, that each insurance policy was itself a loan and this attracted a rebate on early closure. It's this smaller amount which was consolidated into the subsequent loan(s).


The 8% interest is calculated on a sliding scale so that the actual interest decreases as it gets nearer the last date of calculation. In other words, you don't get 8% of the original loan amount.


Think of it in reverse;
If you were depositing money at 8% interest, the more money you invested the more interest would accrue.
You were reducing the amount owed with each repayment, so your 8% interest amounts will similarly reduce.

Banana_Hammock

When I took out a loan with front loaded PPi and i paid monthly for it, as I understand say after 24 months of paying PPi when I changed my loan to a larger one the outstanding PPi that remained because I ended the loan early, this figure say £3000 remaining would have been eliminated, yes ? Not added to the next loan as finance ?

If a loan for 60 months is ended on month 24 does that mean the remaining 36 months of the term are cancelled on PPi, then when I passed over to another loan a whole new PPi policy was begun with no costs from previous loans PPi added ? Or is existing PPi carried across ?

Thanks

Banana_Hammock

Sorry pressed ENTER,

When you say a rebate was given when the loan was ended, do you mean when the loan was going to be replaced by a new larger one they assessed what PPi was outstanding then gave a settlement figure as oppossed to the full PPi remaining and this was paid of by a portion of my new loan ?

So what I am expecting to get back is, all PPi repayments I made plus 8% interest on that sliding scale PLUS the rebate that was given at the time for ending early ?

Sorry to have to have it spelled out in lay mans terms but my understanding on banking terms is little and like so many others on here an easy explanation will aid so many aswell as myself, thanks very much .

[Deleted User]

Banana_Hammock wrote: »

When you say a rebate was given when the loan was ended, do you mean when the loan was going to be replaced by a new larger one they assessed what PPi was outstanding then gave a settlement figure as oppossed to the full PPi remaining and this was paid of by a portion of my new loan ?

This is exactly what will have happened.

Banana_Hammock wrote: »

So what I am expecting to get back is, all PPi repayments I made plus 8% interest on that sliding scale PLUS the rebate that was given at the time for ending early ?

No. Why would you "get back" a rebate that has already been applied?
Full redress is all PPI you have paid plus 8% simple interest.
No more, no less.

Banana_Hammock

Thanks Moneyineptitude,

Sorry, see its easy to get confused, I was thinking its like when you change a car with outstanding finance a settlement figure is given and then its added to the cost of the new car you get on finance if the outstanding finance is more than what the cars worth the difference is then added to the new car loan.

I thought my new loan would have paid off the remaining PPi settlement given to end the agreement then added what it paid into my new loan, apologies, thanks for explaining.

amersall

Banana_Hammock wrote: »

Amersall,

If you have the time could you post a quick example of what you mean regarding the PPi scenario on calculations on how a figure is reached.

Sorry to sound daft but I read so many posts and struggle to understand it all.

Many thanks.

moneyineptitude has explained what you will get back, you will get full redress and without knowing what rebates you were given no one can work out the exact amount you will get, just the PPI you paid, the 8% and the PPI you paid back in settlement after the rebate of PPI.

Post the figures up when you get them.