Really lost calculating interest on PPI reclaim

DRendar

Hi all,

I'm hoping someone can lend me a hand calculating the amount of interest HSBC owe me following a sucessful claim against them.

I have had an offer through from them, but I want to verify that they're not short-changing me on the interest.

Here's the details:

• PPI paid as a single premium and added to loan:
• Taken out in June 2001 (Funds arrived in account 12th June 2001)
• 60 Month Loan, paid off early (28th June 2004).
• APR 13.9%

• Details of loan agreement:

• Principal Loan

Loan Amount : £6500.00
Total Charge for credit : £2390.70
Total Amount Payable under this agreement: £8890.70
Repayment
Initial Repayment : £148.08
Date of First Payment : 1st August 2001
59 Further monthly repayments of : £148.18

• Credit Protection Insurance Loan

Amount of Premium (Including Insurance Premiums Tax) : £1489.19
Loan Amount : £1480.00
Total Charge for credit : £544.34
Total Amount Payable under this agreement: £2024.34
Repayment
Initial Repayment : £33.68
Date of First Payment : 1st August 2001
59 Further monthly repayments of : £33.74

• The Loan was paid off early on 28th June 2004.
• Amount repaid: £4248.77
• PPI Refund of £244.13

So the offer letter I have had back lists:

• Premium Redress £1728.47 (This seems about right)
• Plus Taxable Interest at 8% : £1489.10
• No Compensation

That interest figure seems a bit low to me - I've used a few 'Flat rate' and 'simple rate' calculators to try to figure this out and they are all coming back at >£3000. but I don't know if I'm using them correctly.

Can anyone provide a little advice here as I'm very confused!

Many thanks in advance!

Dash

meer53

If you use the simple interest calculators it's in the right area, depends on how many years they're paying you for

DRendar

Hi Meer53,

Thansk for the reply, however I was really looking for a confirmation (or explanation!) of how the interest is calculated, or for someone to point to an interest rate calulator that is known to work correctly for this type of calculation.

most of the Interest rate calulators out there assume you're the one taking the loan and that it's on a repayment basis for example.

I just want to ensure all my ducks are in a row before I go back to HSBC.

Many thanks!
Dash

[Deleted User]

DRendar wrote: »

[*] Premium Redress £1728.47 (This seems about right)
[*] Plus Taxable Interest at 8% : £1489.10
[*] No Compensation

I don't think your offer is anything other than full redress. You say "no compensation", but the 8% interest IS the compensation.
You can ask the Bank for a full breakdown of their calculations, but I sincerely doubt you'll receive any more.

willypass

sorry for jumping
on you post but how do i write a new post

meer53

If you calculate 8% on the amount of your redress x the number of years since you stopped paying the PPI the interest is about right. I don't see how you get to £3k ! Call HSBC and ask if you think it's wrong but i think its correct.

[Deleted User]

meer53 wrote: »

Call HSBC and ask if you think it's wrong but i think its correct.

It is correct. The OP can get a full written breakdown of the offer on request.

societys_child

willypass wrote: »

sorry for jumping
on you post but how do i write a new post

You've probably worked it out by now, but
Click your back button (<) once
scroll up
click the big blue New Thread button

DRendar

Thanks all, I'll be putting in my acceptance tomorrow.

Incidentally I finally managed to find a calulator that gave the correct answer - and it's on this site:

I'm still too new to post links unfortunately, but the URL is

<this site> /reclaim/bank-charges#step2

Not for exactly the same thing, but close enough :-)

Thanks again!

Dash

craftybarby

Sorry everyone but how do I post a new query?

[Deleted User]

craftybarby wrote: »

Sorry everyone but how do I post a new query?

This seems to be the thread to ask in!:D

You've probably worked it out by now, but
Click your back button (<) once
scroll up
click the big blue New Thread button

Hope that helps...