PPI Success letter - how much get back?

darang

Hi,

Received letter from Ombudsman saying BOS will make an offer within 8 weeks on a 25k unsecured loan which had PPI attached of 18k. Payment was over 120 months. Overall over 120 months payback was 60k-ish. Loan was defauted with 4700 to pay overall and this being paid back via a recovery company at an agreed rate pm. Anyway, how do I calculate what I would get back? The letter says;

"BOS will be making an offer of compensation on this PPI. The offer is in line with the Ombudsmans general approach where we decide that a consumer shouldn't have been sold PPI. This is put to Mr xxxx in the position he would be in if he hadn't taken out PPI"

Because BOS will need to look at individual circumstances, incluidng the actual PPI paid and any interest charged it will take some time to calculate payments"

In theory, I gather I am looking at the 18k to be repaid minus any outstanding (defaulted) payments, however, how is interest worked out?

Thanks all!

-taff

interest is 8% simple on a sliding scale.

amersall

In theory, I gather I am looking at the 18k to be repaid minus any outstanding (defaulted) payments, however, how is interest worked out?

You do not get the whole PPI back as you did not pay the whole of the PPI due to default, the interest on the PPI that you actually paid is in the PPI total, there is nothing to add to the initial PPI total regarding this.
You need to know how much the monthly PPI payments were and you get back those that you actually paid.

The good news is that the Whole PPI will be taken off the balance of the loan, this should mean that you should not have to repay anything back to this loan, make sure that the whole PPI is taken off the balance.
You then get back the PPI you actually paid with 8%, this is on a decreasing monthly scale on the monthly PPI payments from loan start date to date they redress, the nearer you get to the redress date, the less the 8% is.

darang

Thanks Amersal.

The loan was 25k -a
The PPI was 18k - b

(a+b) = 43k (c)

The interest for loan and PPI together (c) (@ 4.66%) was 22k (d)

Total loan = c+d - 65k paying back 541pm over 10 years.

(This is how it is set out on original document)

Therefore I'd imagine they would have to calculate what I did pay out of the 18k PPI and ALSO the interest part of the PPI on the 22k piece??

The Ombudsman letter says they need to calculate what I would be due if no PPI had been added. I take this to be not only the 18k PPI but also inclusive of the 4.66% interest piece of the loan AND PPI together?

In any case, it's a result and waiting patiently for offer.....that divorce and the hassle over a number of years will be worth it if get sizeable refund

-taff

You will get back what you actually paid.

This is the portion of the 18k plus 4.66 interest that you paid. It does not include any interest added to the loan part of the borrowing

Then you will get 8% simple interest on the total above.

Wait and see what they come back with.

darang

Cheers -taff!

Will see the offer and let all know the story from initial fob off letters, stalling tactics etc through to offer status.

[Deleted User]

How on earth were you persuaded into taking a protection policy costing £18,000 on a loan of only £25,000???

amersall

Wow, this is very bad :eek: what a rip off

darang

Hi all, just to confirm, BOS sent letter of offer after 9 weeks. Not bad service. Problem is, the initial loan was a joint loan between me and then missus. 1 year after it started we divorced and I assumed full responsibility for the loan, documented legally etc. BOS say they will be sending half the redress to me and half the redress to her as it was in joint names initially. Will see how that one pans out.......thanks to all for responses

amersall

50% of something is better than nothing, you have no option but to go 50/50, this stinks f you repaid most of the loan but they have do this as it is joint.
A win though in any event.

-taff

If it was documented legally, show them that.