Compound interests on premiums only £10 is that correct?

mandy12345

Hi,

I applied for my PPI refund with Natwest and have received an offer from them where;
Refund of premiums is £447 which should be correct as they sent me monthly break down for all period and compound interest on premiums is £10 which I think is really low bearing in mind the i was lying PPI from 06/2003 until 08/2014
There are also over limit fees of £24 and compound interest on fees £0.38 and statutory interests 8% minus tax
I have compared my compound interests with my friend who had refund on premiums £340 and compound interests £220 for shorter period 05/2004 to 10/2009 which really make me think my interests are not correct. Could someone please explain me what would influence compound interests and if is possible to have only £10 for 11years of paying PPI.
Thank you

Nasqueron

I believe it is "simple" interest, not compound for PPI refund - i.e. refund of premium + 8% simple

mandy12345

It is described as "Compound interests on premiums, based upon interest rate charged on credit card £10.42"

[Deleted User]

The interest is simple, nor compound. If you remain unsure, contact the Bank and ask them for a proper breakdown and explanation of terms.

Full redress is a refund of all PPI paid, plus attendant interest, plus 8% simple interest.

mandy12345

Thank you for both answers I think I should be more precise about all break down I have received they are as follow:
Refund of premiums paid between 06/2003 and 08/2014 £447.01
Compound interest on premium ,based upon interest rate charged on credit card £10.42
Refund of erroneous over limit fees paid £24
Compound interests on erroneous fees, based upon interest rate charged on credit card £0.38

Total refund due £481.81

Gross interest at 8% where applicable £178.33

Less income tax at 20% £35.67

Net interest £142.66

Net Offer £624.47


I hope thats more clear now any help will be highly appreciated why compound interests (second line) are so low.
I have contacted the bank but have not received clear explanation about interest they have send me break down of premiums for all those years.

[Deleted User]

Compound interest is not paid as part of PPI redress. They are clearly paying it on "erroneous fees" which only the Bank will be able to explain.

Your PPI offer looks to be correct.