PPI moron here - can anyone help?

Insider101

Nasqueron wrote: »

It's simple interest not compound

CC PPI you would get a refund of the premiums paid, 8% simple interest and, I believe where but for the PPI element you would have been in credit, interest on that too

It is not only simple interest, you get compound interest but only to the extent that you were actually charged it in the first place.

As a basic example if your total PPI premiums paid were £100 and the balance on your card was (say) £1,000 with a 24% interest rate (i.e. 2% per month). You would be getting charged approx £2 per month in compound interest on the PPI balance. Therefore, they would have to include this as part of the repayment.

On the other hand if you subsequently paid off the balance on your card then you would owe £0 and would not be getting charged any compound interest. However, if it had not been for the PPI balance, your card would have been in credit by £1000. Hence you would get the simple interest at 8% per annum.

Confused? I don't blame you, most people are until you've been involved with it a while.

BENBO

Confused? Just a little and I don't think I'm alone. I see so many seemingly conflicting answers on these posts. For example how would this work? 1984 for 12 months my av monthly PPI was £90 but then in Jan 1985 I cleared my balance briefly before running it up again. ( paying 24% interest on the card ) Does that mean I have month 1 at 2% compound for 12 months and then month 2 for 11 and so on and then stop when the balance is cleared?
There seem so many different possibilities they could offer anything and I'd be none the wiser but I'd like to be able to get a rough idea first.
Thanks for the help.

Insider101

BENBO wrote: »

Confused? Just a little and I don't think I'm alone. I see so many seemingly conflicting answers on these posts. For example how would this work? 1984 for 12 months my av monthly PPI was £90 but then in Jan 1985 I cleared my balance briefly before running it up again. ( paying 24% interest on the card ) Does that mean I have month 1 at 2% compound for 12 months and then month 2 for 11 and so on and then stop when the balance is cleared?
There seem so many different possibilities they could offer anything and I'd be none the wiser but I'd like to be able to get a rough idea first.
Thanks for the help.

Are you sure? 1984 is a bit early for PPI. Plus to be charged £90 per month you would have to consistently have a five figure balance on most card types.

In the above example, your balance would be reworked on a monthly basis, i.e. what it was with the PPI and what it would have been without. So assuming you would have always been in debited, your first month's £90 premium would have compound interest at 2% added it it (i.e £1.80). So you get a balance of £91.80. Then you add the next £90 and get £181.10. Then you get a further 2% compound on the total balance (i.e. £3.64). So total would be £185.44. And so on. However, if you paid the card off then your total running balance of £185.44 would be frozen as you would not be charged any more PPOI or interest and you would start to accrue statutory interest on the frozen balance at 8% simple per annum.

Insider101

Heathenladd wrote: »

Yes your right i am correct and they do play hard ball and you have a typo!!!! :rotfl:

Where please?

If you mean in the word "you're" (which I assume you do because you have spelt it "your") then I am right and you are wrong. "You're" is an abbreviation of "You are". So if you wanted to write "you are correct", you would abbreviate it to "you're correct", not "your correct".

http://www.wikihow.com/Use-You%27re-and-Your

magpiecottage

Insider101 wrote: »

Where please?

If you mean in the word "you're" (which I assume you do because you have spelt it "your") then I am right and you are wrong. "You're" is an abbreviation of "You are". So if you wanted to write "you are correct", you would abbreviate it to "you're correct", not "your correct".

A panda walks into a caf!. He orders a sandwich, eats it, then draws a gun and proceeds to fire it at the other patrons.
"Why?" asks the confused, surviving waiter amidst the carnage, as the panda makes towards the exit. The panda produces a badly punctuated wildlife manual and tosses it over his shoulder.
"Well, I'm a panda," he says. "Look it up."
The waiter turns to the relevant entry in the manual and, sure enough, finds an explanation. "Panda. Large black-and-white bear-like mammal, native to China. Eats, shoots and leaves."

Nasqueron

Insider101 wrote: »

Where please?

If you mean in the word "you're" (which I assume you do because you have spelt it "your") then I am right and you are wrong. "You're" is an abbreviation of "You are". So if you wanted to write "you are correct", you would abbreviate it to "you're correct", not "your correct".

http://www.wikihow.com/Use-You%27re-and-Your

He also forgot to capitalise the 'I' and should have had a comma after either 'right' or 'correct'. Excessive use of !!!! as well, one would suffice.