Am I being Shortchanged ?

Mr_Mad

I took a 5 year loan with Nationwide in September 2005 for £15,000, however due to a investment return, I settled the balance 9 months later in May 2006 paying £13,594.47 as the settlement figure. I made 9 payments of £335.59 totalling £3020.31 before I settled.

Nationwide have accepted they mis-sold me PPI offering me £799.75 as a PPI refund and £475.93 at 8% interest totalling £1275.68. It all looks very official, however I think that they are only offering me a refund on what I paid before settling the loan.

Am I right in assuming that without PPI, the settlement figure would be much less than the £13,594.47 I paid (surely this fIgure includes 51 payments of PPI), therefore they should also give me the difference between the settlement figure I paid and the amount it would have been minus the PPI ?.

In a nutshell, a little over a grand (£799.75 without the interest) for a £15,000 loan over 5 years, which they accept was mis-sold just doesnt seem right to me.

If I am right and they are required to give me back the full amount of PPI, irrespective of whether I paid it off early?. They are saying my PPI was only a little over £13 per month if this is the case

I will be contacting the Nationwide immediatley to establish exactly how much the monthly PPI payment was (I dont have the agreement) however any advice would be very much appreciated.

-taff

Redress is what you actually paid over the months you had the loan before you paid it off, minus the rebate figure when you paid it off, plus the associated interest over the months you paid, plus 8%.

You will get no more.

amersall

It seems right as you only paid 9 payments of PPI and the remaining PPI after the rebate, it is the rebate figure and the actual PPI amount that you need the calculation for to make sure they have paid this.

dunstonh

In a nutshell, a little over a grand (£799.75 without the interest) for a £15,000 loan over 5 years, which they accept was mis-sold just doesnt seem right to me.

Except you didnt borrow £15,000 over 5 years. You borrowed it over 9 months. So, there would have been a PPI rebate.

however I think that they are only offering me a refund on what I paid before settling the loan.

Which is correct. You only get back what you pay plus some interest.

If I am right and they are required to give me back the full amount of PPI, irrespective of whether I paid it off early?.

No. They are required to pay you the premium you paid minus any rebate (or anything else paid out to you) plus interest.

They are saying my PPI was only a little over £13 per month if this is the case

Which is in the ballpark you would expect for a monthly payment of £335.