PPI offer question

Buttony

Hi all
I've followed up a PPI claim myself and over this weekend I received a letter in the post stating they believe I have a case and offering me some compensation.

The problem is no matter how I try to work out the figures they don't seem to add up.

Background is took out loan in 2007 (May) to consolidate debts, was mis-sold PPI. I put a claim in on the consolidation loan and was successful.

Here's the numbers (from the original paperwork):

Loan ref xx333:
KEY FINANCIAL INFO:
Amount of loan: £22,800
Period of loan (months): 84
Total amount payable: £30,398.39
1st payment: £362.35
84 further payments: £361.88
APR 8.9%
OTHER FINANCIAL INFO:
Interest Rate per annum: 8.9%
Total charge for credit, comprising: £7,598.39
Total interest: £7,598.39
Arrangement fee: £0
ON NEXT PAGE:
Payment loan protection: £105.14 (I understand this is included in the above repayment amounts as no other amount comes out of my account).

On my PPI questionnaire I stated that the loan was to consolidate the following debt:
Credit card: £9,000 (2001-2007)
Loan: £12,500 (2004-2007)
Overdraft: £2,000 (2001-2007)
I provided no further info on these - I don't have any records for the credit card or original loan anymore

The loan is still active and I currently have a further 15 payments to go (15 * £5,428.20)

The offer letter came though and states the following:

Grad loan protection plan ref xx575
Personal loan protection plan ref xx333 (as per my claim form)
Offer of £4,772.44

Grad loan ref xx575
PPI premium redress: £2,271.23
Taxable interest: £1,169.02
OFFER: £3,440.25

Personal loan ref xx333
PPI premium redress: £1,085.49
Taxable interest: £273.70
OFFER: £1,332.19

TOTAL OFFER: £4,772.44

Here is why I don't think this looks right:

I've completed 69 payments (84 originally planned - 15 remaining).
At £105.14 per month protection plan I would have thought I'd be eligible for £7,254.66 (£105.14 * 69)
I guess I would then need to remove the remaining protection premium from my remaining payments.

I do not understand why they've looked at a previous loan that I was not enquiring about and why the value on the loan I was enquiring about has come back so low (only £1,332.19 against my estimated value of over £7k with 15 payments remaining).

I've only got 4 weeks to respond (as it's taken the letter 2 weeks to get to me from the printed date!) and am not sure what to do.
My plan is to try to contact the bank and query with them - although the offer letter states to go to the ombudsman if I'm not happy.

I'm totally confused.
Any help anyone can offer up would be very gratefully received.
Sorry for the wall of text and thanks in advance

-taff

Don't be so melodramataic, you haven't been abandoned.

It doesn't look like you are paying PPI on the most current loan. Their charge of 7 thousand odd was interest only, not PPI, so are you paying back more than 361.88 a month?

It looks like they've investigated the previous loan [ which is a what they're supposed to do], and the roll over from that loan onto the ccrrent one.Phone them up and ask.

Do you have any evidence [ agreement, figures etc] that you are actually paying PPI on this current loan?

Buttony

Yep got all the info and documentation.

The Payment Protect Plan document had the details I listed above:

"Payment loan protection: £105.14 (I understand this is included in the above repayment amounts as no other amount comes out of my account)."

I am paying back the £361.88 each month (which I believe includes the £105.14)

My £7k estimate was to do with the 69 payments of £105.14, I understand that the other £7k is interest and falls outside of this - just coincidence that the two figures are c.£7k

I'm obviously happy that my claim has been upheld, it's just that I can't make head nor tail of the figures - why the larger, longer loan has a lower redress for example.

I'll give them a call - and yes I guess I was being a little melodramatic, it's just frustrating that there is such little support offered by the bank.
Now I just need to find a phone number ...

-taff

If you are only paying back a total of 361 pounds month, that does not include any PPI payments, it only includes the original loan amount, plus the associated interest for credit. There is no PPI in that amount.

That's going by the figures you posted above.


22,800 borrowed plus 7598.39 interest = 30398.39 divided by 84 month repayment length = 361.88 monthly payment

Buttony

I see.....
Then I wonder what happened to the direct debits of £105.14 ...

Taking the redress amount and dividing it by the £105.14 that I was quoted - and have the paperwork confirming the direct debit was set up - I only paid about 10.3 months of protection.
Time to dig through some old statements ...

[Deleted User]

Buttony wrote: »

Then I wonder what happened to the direct debits of £105.14 ....

They went to pay the insurance on the original loan.
Obviously the reason you only paid 10 months of protection was because you then consolidated with another loan, this time without PPI. It sounds as if your calculations are including the whole PPI amount you would have paid if the loan had run to term. You can only receive a refund of the PPI you actually paid...

Buttony

But the PPI I signed up to was from the start of the new loan.
That's what the direct debit form states, starting June 2007 until further notice.
It's all very odd - I hadn't done the obvious check of the £361.88 by number of repayments
Thanks for pointing me in the right direction everyone

[Deleted User]

Buttony wrote: »

But the PPI I signed up to was from the start of the new loan.

Yes, but you pay it in instalments which are curtailed if the loan does not run to term.
You can only receive a refund of the PPI you actually paid...

-taff

You need to find out where they are getting these figures from

Personal loan ref xx333
PPI premium redress: £1,085.49
Taxable interest: £273.70
OFFER: £1,332.19

It seems like they think PPI was paid, unless they are saying that was the amount of PPI rolled over onto the loan.
Ask what the redress figures represent on the 333 loan.

[Deleted User]

-taff wrote: »

unless they are saying that was the amount of PPI rolled over onto the loan.

Yes, after rebates for early settlement, it looks like this was the amount of PPI and interest rolled over from the original loan.

OP should ask for clarification from the Bank...