ppi compound interest

cypru

Hi. Please can someone help me out. I had an rbs cc from aug 2001, its still active and ppi was cancelled july 2009. My complaint was with fos for past year and ive recently been informed that rbs are going to make me an offer. I have worked out that my ppi repayments were approx 10 per month (roughly 900 paid in total over 95 months) - card apr was 16.9% - can someone help me to calculate the compound intetest please. Much appreciated. Thanks

DevCoder

It wont be compound interest on a ppi reclaim it will be 8% simple interest

How many months in Year 1 ?

then it's £10 x 12 months (£120) x 8% for each subsequent year (£120 * 8% = £9.60)

cypru

Oh... I have read lots of threads that say on a credit card ppi you also get compounded interest plus 8% simple - this is also on fos website?

DevCoder

Sorry, I wasn't reading right, the compound interest part of the ppi will also be repaid (ie the amount of interest that was calculated on a compounded method that was due to PPI).

To work out compounded interest its

Interest = PPI amount (£10 of interest at 16.9% (ie 0.0014) on month 1) * rate% * (num of days/currency basis)

so I = C (this bit youll have to work out on a month by month basis) * 16.9% * (num of day in each month / 365 (GBP is 365 currency basis)).

so if it started in January then

I = 0.0014 * 16.9% * (31/365)

I think this is right (ie you are repaid the compounded interest part of the ppi element of the actual interest paid)

cypru

Thanks so much for explaining it to me. Its all a bit to complicated for me tho? - i just want to make sure the offer i get is right?....

DevCoder

If you post the full details of the offer,also including when your ppi started then we should be able to help.

cypru

I will when it comes. Is there no way i could work it out from the info in my first post?