struggling with the maths

wendy_ann1983

hi, i have been trying to work out the interest owed on variable credit card ppi but my brain is going to explode. i have a list of ppi payments back to 2003 but only statements back to 2004 so for ease of things i just want to concentrate on that for now. at first i thought it was just using a compound calculator to add 8% to all the figures from then till now but reading a bit more it seems its to do with the interest i paid on the card, is it simply just the ppi+interest rate but then where does this 8% firgure come in? if someone could help with the maths on the below figures it would be a great help

Date: Sept '04
balance: £2437.13
ppi: £19.10
interest: £31.69 @ 1.385%

WatchMan

wendy_ann1983 wrote: »

if someone could help with the maths on the below figures it would be a great help

Hi,

On a credit card, 8% interest is not added to the total amount paid in premiums.

What should happen is that the business works out how your account would have looked over the years had you never paid PPI. If at any point your account would have been in credit, you would be given 8% on this amount.

So it is possible to not be awarded any '8%' interest - it all depends on how your account would have looked had you not paid for the PPI policy.

What you should get is a refund of all the premiums you paid, the interest they attracted (card rate) and, as mentioned above, maybe some 8% statutory interest.

safestored4

That 's assuming that the complaint of misselling has been upheld. At present we haven't the faintest idea.

wendy_ann1983

Ah, thank you, that's really helped, was getting very confused, I only claimed today but just wanted to get a idea if they do give me an offer.

getting_my_life_straight

Sorry to jump in on this thread, but I am too struggling with the concept of the 8% interest calculations. I recieved substantial amount of this sort of interest last year with a CC upheld claim, which was up to its limit most of the time, and from reading above if the ppi had been removed, there is no way that the account would have been in credit. The actual amount of interest was over twice what the premiums were so it did work out quite substantial!
Going on the above, how did that work out?

-taff

If the account would have been in credit 8% SIMPLE interest is paid, not compound.

-taff

getting_my_life_straight wrote: »

Going on the above, how did that work out?

They also refund any associated interest charged to the card as a result of the premiums charged.

getting_my_life_straight

-taff wrote: »

They also refund any associated interest charged to the card as a result of the premiums charged.

I received both interest on the premiums and the 8% stat interest? The stat interest was significantly more that the premiums and interest

-taff

When did you buy the CC?