PPI claim upheld - How much can I expect back?

GaryBC

Hi guys

I've looked at the FAQ which tries to explain how the FOS works out the repayment after a 'successful' PPI reclaim case - but I'm afraid it's beyond my simple brain! If I lay out the actual figures, maybe somebody could do the sums for me? Please? :-)

In June 2005 we took out a 25 year, £72,000 loan.
To this was added a five year PPI policy costing £17,000.
So we owe, in total, £89,000.
Our repayments are c£730/month for the £72k and c£130/month for the £17k. So we pay, in total, c£860/month.
As the PPI policy only ran for five of the 25 years of the loan it expired in 2010 but we continue to pay c£130/month.

The FOS has found in our favour and instructed the PPI company to stump up.

My simple mind puts the amount we are owed as at least what we have paid, ie £11,700 - 90 months (June 2005 to December 2012) at £130. The bits I can't work out are all the stuff based around the idea of "putting us back into a situation had we not taken out the PPI", plus the interest elements, plus the compensation for the stress it caused us (£130/month 'unnecessary' payments would have been a contributory factor in forcing us into a DMP a couple of years later).

I understand the FOS will make us an offer which, presumably, we either accept or reject. If we had a ballpark figure of approximately what to expect we'd know if the offer is about right.

Can anybody help me here please?

If anybody out there is running an aerospace company and wants guidance on AS9100 compliance I'll return the favour!

Cheers,
Gaz

dunstonh

You wont get a refund for stress. It is unlikely they will consider you getting put in a DMP an issue with the PPI as in the scheme of things, £130pm is unlikely to make the difference. It may buy you a few more months but it is just delaying the inevitable.

The redress method is defined by the FSA. A refund of the premium paid (minus any amount previously rebated due to early payment or under a claim) plus interest.

If you have any outstanding debt in arrears, defaults or had an amount written off, the lender can use the redress payment against that.

GaryBC

dunstonh wrote: »

You wont get a refund for stress. It is unlikely they will consider you getting put in a DMP an issue with the PPI as in the scheme of things, £130pm is unlikely to make the difference. It may buy you a few more months but it is just delaying the inevitable.

The redress method is defined by the FSA. A refund of the premium paid (minus any amount previously rebated due to early payment or under a claim) plus interest.

If you have any outstanding debt in arrears, defaults or had an amount written off, the lender can use the redress payment against that.

Yes, I know the method is defined by the FSA. It is summarised on this forum in one of the FAQs - but I don't understand it! Hence my request for help from someone who does understand it and can work out the maths.
The FOS has instructed that the PPI company make us a payment in regards the stress it has put us through - but I'd like some clue as to whether or not it is about right.
And if there had been arrears or defaults etc I'd have included them in my original question.

dunstonh

And if there had been arrears or defaults etc I'd have included them in my original question.

You mentioned DMP. Did you repay the debts in full or did the settlement include any amount reduced/written off?

GaryBC

The DMP and the PPI claim are entirely separate from each other.

[Deleted User]

You'll just get back the amount you paid in PPI and 8% simple interest. You won't get anything extra for "stress" and, if your loan was subject to a reduced settlement as part of your DMP, the Bank are within their rights to off set any redress against any amounts written off.
http://www.moneysavingexpert.com/banking/setting-off

worried48

Let me have a go - don't complain if I'm way out!

£11570 for what you have paid on the PPI so far this is simply £130 a month times 89 months

Interest £1360 per year, times 7.5 years equals £10200

So that's £21770. Also the loan payment you are now making will be reduced by £130 a month from now on.

But if you defaulted on anything with your bank, that will be paid back out of this amount

Does that sound right, anyone?

-taff

worried48 wrote: »

Let me have a go - don't complain if I'm way out!

Only if they actually paid that amount in PPI. If they defaulted after one year for example, they'd just get the one years worth paid back, plus 8% on that. The interest would be takern off the loan and the payments recalculated to reflect that.

The DMP and the claim are only separate if the loan was fully paid off, or you are still paying the loan in full.

[Deleted User]

-taff wrote: »

The DMP and the claim are only separate if the loan was fully paid off, or you are still paying the loan in full.

Yes, I think the OP would be better served allowing the Bank to detail what redress is offered rather than inviting posters on the internet to speculate without full information about the circumstances of the complaint.

-taff

I don't mind speculating, as long as whoever is reading doesn't mind knowing I'm probably wrong and they might as well just wait and read the breakdown when it's sent.

[Deleted User]

-taff wrote: »

I don't mind speculating, as long as whoever is reading doesn't mind knowing I'm probably wrong and they might as well just wait and read the breakdown when it's sent.

I think it's better to simply state that full redress if awarded is a refund of the PPI paid plus 8% simple interest. There are far too many variables (and often unmentioned circumstances) to be specific with any confidence.
There is definitely no extra compensation for "stress", though.