RBS Loan PPI - Offer - HELP

lennonc1

Hi all,

In 2003 had £2000 loan, - checked docs last week and seen there was ppi i didnt know about so called to claim. Plus £1000 loan previous year. No docs but they say was ppi on it as well.

Details on documents - APR 16.8%
Loan - £2000
Loan insurance - £367
Total amount payable - £2980.80 including -
Interest - £588 + admin fee £25

loan repayments per month - £69.94 = over 36 months = £2517.84
insurance repayments per month-£12.84 over 36 months= £462.24

Am I right in thinking the calculation is premium of PPI £367 + 3 years interest at 16.8% + statutory 8%

Or as it was 9 years ago, add (+) 9 years interest of 16.9% ???

Im confused!! The bank has wrote and said they will give us £700 goodwill gesture payment but no liability to missold ppi......

Should I accept or write to them with my calulation breakdown and suggest that is what they owe.?

Hope this makes sense!!!!!

I have kind of worked out both together would be over £1000 0dd back but dont know how to really work it out.

Any help would be great, thanks in advance.

Ps, looking into PPI claims with Northern Rock, Legal and General, Cardiff Pinnacle. Might need help on that too....

Brains64

lennonc1 wrote: »

Hi all,

In 2003 had £2000 loan, - checked docs last week and seen there was ppi i didnt know about so called to claim. Plus £1000 loan previous year. No docs but they say was ppi on it as well.

Details on documents - APR 16.8%
Loan - £2000
Loan insurance - £367
Total amount payable - £2980.80 including -
Interest - £588 + admin fee £25

loan repayments per month - £69.94 = over 36 months = £2517.84
insurance repayments per month-£12.84 over 36 months= £462.24

Am I right in thinking the calculation is premium of PPI £367 + 3 years interest at 16.8% + statutory 8%

Or as it was 9 years ago, add (+) 9 years interest of 16.9% ???

Im confused!! The bank has wrote and said they will give us £700 goodwill gesture payment but no liability to missold ppi......

Should I accept or write to them with my calulation breakdown and suggest that is what they owe.?

Hope this makes sense!!!!!

I have kind of worked out both together would be over £1000 0dd back but dont know how to really work it out.

Any help would be great, thanks in advance.

Ps, looking into PPI claims with Northern Rock, Legal and General, Cardiff Pinnacle. Might need help on that too....

I think your calculations will be near enough right, give or take some, expect them to offer less the first time, they are probably hoping you take that, you can if you think it's reasonable but I reckon they are holding out and that you could get more, especially once they actually admit it was mis-sold which they haven't admitted openly yet although they are kinda, sorta saying 'okay you got us...look just take this and we'll say no more about it okay??' with this so called "goodwill gesture":D.

Going through a claims specialists seems rather frowned upon in this forum so I hesitate to advise it and I can understand why many don't like them, what with having to pay them back 20-30% of your compensation, that is a big trade off but there are some advantages, for a start, banks wouldn't fob off a claims specialist like they do many customers claiming themselves.

As a customer of the bank it's tempting to settle for less, the claims specialist however won't settle for less, they will get every penny out of the bank/lender they owe because it's in their interest, after all, the more they get out of the bank for you the more they make, it's up to you which way you want to do it but I say keep hammering this lender yourself , with a claims company or whoever till you are satisfied that they have paid up what they owe in full.

lennonc1

Thank you, this is what I thought so best to let them know my calculations and insist that this was missold ppi? Now have all the rest to start after reading up on here I think I can do it myself and fingers crossed next few months will have claims coming back to me. Yay.

lennonc1

Sorry meant to ask about the interest is it over the 9 years 0r the 3 years? thats what im not too sure of. Thanks again

Moneymash

The interest is for the length of the loan.

pheonixrising21

As I understand it you should get back ALL your PPI payments (36 x £12.84 + interest @8% for every month you have been without each £12.84 i.e 8% p.a on £12.84 for 9 years + 8%pa on £12.84 for 8 yrs 11 months, etc, etc.

I can't beleve that they charged you interest on the insurance! That is shocking!

They might not be admitting liability, but £700 is a large offer for a "goodwill" guesture. If they are that generous they might give me £700 even though I've never had any association with them at all!

Without working it out fully, I'd say they are a couple of hundred short of the real answer. Do a calculation yourself, based on the above, send it to them and ask for their calculation to cmpare it against.

For reference, I got PPI back on a loan from from a similar time and one from a little later. Both came back with offers where the 8% interest total was more than the PPI payments in total, so I would expect yours to be similar.You paid £460, so you should get over £900 back including interest. They are hoping that you accept the £700 and move on, possibly because of what might happen if you went to the FOS with the fact that they charged you interest on the PPi as well as mis-selling it in first place!

lennonc1

Thank you for your reply, I have actually accepted the offer, well both, one for 740 and other for 120 as now I have been made redundant and have to pay the mortgage othewise northern rock will be on at us again, not their biggest fan but dont want to be repossessed lol.

opinions4u

I can't beleve that they charged you interest on the insurance! That is shocking!

Why are you shocked at something that happened as standard with PPI on most unsecured loans?

pheonixrising21

opinions4u wrote: »

Why are you shocked at something that happened as standard with PPI on most unsecured loans?

Well, I must have had very non-standard unsecured (and secured) loans then, as I have never had a credit agreement with an additioanl lump sum for insurance which was added to the amount borrowed and interest charged on the whole lot.

Both of the Santander PPI's which had refunded were as a percentage of outstanding amount. I remember one was 72p per £100 owed at the time the statement is generated each month. My mortgage PPI is with a separate company and is calculated based on my monthly payment as it protects 125% of the mortgage payment per month. The offer from my mortgage provider for the same protection was based on the same principal.

I have never once been offered PPI as a "£x lump sum upfront, either in cash or added to the loan".

Therefore, as I have not encountered it before, it is not common to me and therefore shocking. :eek: