Help needed with MBNA Loan PPI refund calculation

Gav77

Hi all,

Firstly would like to say a big thanks to everyone on this site that provides helpful and useful information. I have used the help and guidance to assist in several PPI complaints, for which all except one (OPUS) have been upheld.

I have received a refund figure from MBNA for a loan with PPI and wondered if someone could validate whether my calcuated figure (as opposed to MBNA's calculated figure) seems correct. I will be contacting MBNA on Monday regarding this.

Loan start date = 14/07/2004
Term = 60 months
Loan amount = 8000
PPI premium = 1644.33
Total interest (loan + ppi) = 1653.04
Loan settlement date = 22/06/2005
Total amount paid at settlement = 9348.59 (11 x 188.29 + 7277.40)

MBNA refund as at 07/04/2014:
Premiums + interest = 822.06
8% gross interest = 587.31
Less 20% tax = 117.46
Total refund = 1291.91

I did not retain any documentation other than a confirmation letter from MBNA in 2005 to reflect the loan was settled. As this contained the account number and I knew the PPI was single premium, I submitted a complaint on this basis, which was successfully upheld (though appreciate they may have upheld to due other reasons).

I didn't agree with the figure being offered but paid in the cheque anyway as their letter upholding my complaint stated "please bank the cheque immediately; doing so will not prejudice you if you still have a query about your complaint".

As I didn't have any details, I submitted a SAR and have just (today) received a copy of the agreement, account notes and transaction history. I guess I got lucky as this account is 10 years old, but I am still an MBNA customer. Correspondence held regarding this account will be forwarded separately within the next 21 days.

My calculated figures are as follows based on SAR details provided:
<< See subsequent post - original calc deleted as made an error on calcs spreadsheet >>

On the assumption I am correct and they have calculated the refund incorrectly, am I also due additional 8% interest up to the current date and compensation because they have calculated the figure incorrectly?

Apologies for the very long (and my first!!!) post. Thanks in advance for any help anyone can give on this.

Gav77

Sorry folks. Having looked at this again I have realised I made a mistake in the spreadsheet I'd put together and it actually does seem to me that their calculation is about right +/- £50. I think I had over complicated it unnecessarily!

In simple terms:
Total amount of interest due on 8000 loan 14/07/2004 to 22/06/2005 @ 6.6% = 496.18 approx (approx as it does not account for the capital amount and thus interest reducing each month)

Total paid at settlement minus (loan + interest due) = 9348.59 - (8000 + 496.18) = 852.41 approx

However this does not account for any penalty that might apply at settlement e.g. 30 days interest. I can't see anything to indicate this in the terms and conditions. It only says that interest is due up to the date of settlement when early settlement occurs. So I might pursue the difference of 852.41 minus 822.06.

Is there a spreadsheet available for calculating interest daily, taking into account the capital reducing each month?

Then I can get an exact figure...

-taff

Your capital and interest on the capital are not the point.

You settled your loan early, so your rebate was removed from the total you settled it with.

amersall

You get the whole PPI and interest returned to you plus the 8%, less the rebate, the calc looks ok to me as you settled very early.

The loan and interest has no bearing on your redress as taff said.