Account Balance after PPI Claim

Parro2403

Hi

I have looked in various threads and cant see an answer to the following question.

Last year I managed to claim back misold PPI from HSBC (Originally an HFC loan).

My PPI Payements made totalled 3,801.32

This issue I have (cant understand) is they paid the above amount back plus the standard 8% interest and then cancelled the PPI, however the balance on my account was not adjusted

1 monthly Example:-

-5,068.41 - Balance brought forward
-5,083.41 - 15.00 Admin Fee
-5,185.96 - 102.55 Interest Charge
-5,224.85 - 38.89 PPI

So they have given me back the 38.89 PPI payment for that month but have not adjusted my balance to reflect that. I.E. my Balance should have been adjusted back to -5,185.96

A knock on from that is that the APR charge on the outstanding balance would be incorrect!

Has anyone had any dealing with Balance adjustments after claiming back PPI?

Any help appreciated

P

-taff

If they adjusted the loan as well that means you would have the PPI twice.
E.g - you borrow 1000 and 40 for PPI, the loan costs 50 for interest on the capital, the PPI costs 60 in interest.
In total, you have to pay back 1150.

You complained and were successful so the 100 was refunded along with 8% interest.

You loan balance still have this original 100 on it, because you had the money back, rather than take it off the total.

Parro2403

Sorry if I am being thick here... To use your calcs

I borrow 1000

Interest 50
PPI 40

would leave a balance of 1090

I am given back the 40 I paid in PPI but my balance still stays at 1090?

roonaldo

The OP is right unless there is something they are not telling us. Is this definitely single premium PPI as the £38.89 may indicate a monthly premium being refunded or that its been paid to you directly. What does your offer of redress say?

If there is a balance and assuming this is a single premium then percentage of the remaining balance and future payments include an element of PPI so there should be a capital adjustment. It is normal for open accounts to have refund plus interest direct and capital adjustment to account.

Parro2403

The 38.89 was an example of a single monthly premium.

The Offer only states that:

Excess payments - 3801.32
8% compensation
20% tax deduction

Edit: MPI Payment not SPI

-taff

According to the op he has received a cheque for the full amount of PPI, plus the interest addded to it, plus the 8% and he is wondering why his loan has not gone down also, depsite having received all of the monies back.....

or that's how I understood it.

Parro2403

The way I am looking at this is:

1 monthly Example:-

-5,068.41 - Balance brought forward
-5,083.41 - 15.00 Admin Fee
-5,185.96 - 102.55 Interest Charge
-5,224.85 - 38.89 PPI
-5,024.85 - 200 payment to account

The next interest charge should be on a Balance of 4985.96 and not on a Balance of 5024.85 as the line entry (-5,224.85 - 38.89 PPI ) should be removed from the statement

Am I completely wrong with this?

P

Parro2403

-taff wrote: »

According to the op he has received a cheque for the full amount of PPI, plus the interest addded to it, plus the 8% and he is wondering why his loan has not gone down also, depsite having received all of the monies back.....

or that's how I understood it.

No mate i didnt say that / or certainly didnt intend to....

I received back the ppi plus the 8%

Edit: I paid off the loan in full with the PPI money I rec´d

[Deleted User]

Parro2403 wrote: »

I paid off the loan in full with the PPI money I rec´d

So how can you still have a balance?

Parro2403

Moneyineptitude wrote: »

So how can you still have a balance?

Paying it off makes a difference because?

The example I gave was from when I had a balance and the numbers do not add up...

[Deleted User]

Parro2403 wrote: »

Paying it off makes a difference because?

If you've paid it off, there is no balance!

I'll leave you to it, your arithmetic makes my head hurt..