PPI offer Royal Bank of Scotland

aimex

Hi everyone

My husband has just had a letter to confirm that his complaint to RBOS has been upheld. It is in respect of 2 loans and they are suggesting a pay out of £2,537.16.

Loan 1 PPI was £1327.50 from August 2003 to October 2007. Loan 2 PPI was £484.50 from June 2002 to August 2005.

They have calculated the £2,527.16 as follows:

Loan 1 - £2,194.38 (they say that whilst £1327.50 is the original cost of the ppi added to the loan £525.47 is the value of monthly premiums paid at the date the policy was cancelled plus £79.30 interest = £604.77 plus an additional payment to cover the extra amounts paid on re-financing of £733.76 = £1,338.53 plus interest at 8% = £2,194.38).

Loan 2 - £342.78 (they say that whilst £484.50 was the original amount added to the loan the total value of monthly premiums paid at the date policy was cancelled was £148.04 plus £30.49 interest = £178.53 plus 8% = £342.78).

Does this seem right? I am firstly querying because on the original paperwork we were sent the premium amounts are quoted as £1327.50 and £484.50 which is what I had assumed had been paid but this has now been reduced as set out above.

Also I had understood that any ppi would be added to the loan and therefore excess interest would of been paid during the term of the loan as the loan would be bigger due to the PPi being added to it?? so should a further payment be made in that respect (I see that they have accounted for this somewhat in respect of loan 1 but only as this was increased?).

Happy to accept if they have calculated this right just have a fear they haven't, which I guess is because we don't trust the bank anymore!!

Thanks for your help.

Regards

Ax