How is PPI redress calculated?

naafi

Hi,
I have just been informed by the FOS that a company are offering me redress on a miss sold ppi.
I repaid the loan 11 months after taking it out and the ppi was then cancelled.
It is now 95 months since this ppi policy was sold to me.
The monthly premium was £12.68 per month for the ppi policy, it was separated from the loan repayments and I made 11 payments.

It seem the company have offered to refund my 11 payments which come to a total of £139.48. plus 8% per year.
They have also offered me £85.20 compensation.

FOS are going to get back to me as they are not sure about this one as the company have apparently ticked that they want to pay by the alternative approach to redress according to provisions set out in DISP App 3.7 what ever that is. Fos think they have ticked the wrong box.

At the end of the day all I really need to know is how much I am entitled to get back and regardless of what approach they use how do I calculate what I should be receiving.
I have looked at your site and read other peoples posts but am very confused.
Hope some one can calculate this roughly for me or tell me how to calculate it. At least then I will know roughly what to exspect.

Cheers

dunstonh

FOS are going to get back to me as they are not sure about this one as the company have apparently ticked that they want to pay by the alternative approach to redress according to provisions set out in DISP App 3.7 what ever that is. Fos think they have ticked the wrong box.

That does appear to be the wrong box as what they are offereing is a full refund plus interest. The alternative redress method does not refund premiums paid.

In your case, they appear to be offering the right outcome. i.e. a refund of premiums plus interest.

naafi

If this is the right outcome that is good but how much with the interest can I expect to be offered ? I can not for the life of me work that out.
I am hoping that I will have a pretty good idea in order to be able to confirm to fos that I accept the offer.

-taff

it will be 8% simple interest on 139 per year, which is standard, about 90 in interest.

naafi

Hi,
Thank you for your swift answer. :-)

I have another dilemma now which has just come to light.
The dealer has offered me the ppi refund as above but I have just noticed on the original agreement that it states under Key Information ,
The amount payable if you exercise your right to settle this agreement relating to insurance, ( this being the ppi), on a date when a 1/4 of the term elapses would be £213.57
when half elapses £265.75 and when three quarters elapses £192.40.
In calculating these amounts no account has been taken of any variation which might accure under this.

I paid off the agreement in full after only 11 months and it was a 60 month agreement.
Now FOS are wondering if I actually paid more than the 11 monthly payments of £12.68
I can not check this as I sold the vehicle to another dealer who paid off this agreement in full in exchange the vehicle. He then set me up a new agreement starting from scratch.
I have no idea how much the settlement figure was or what proportion of it was for the insurance.
Fos are now wondering because of the wording on the agreement if I actually paid of a settlement figure of £213 + for the insurance.
Any help would be appreciated.
Really need this advice urgently now as it could alter the settlement figure I have been offered which is at the moment £220