PPI Reclaiming successes and failures

Niggly_2

mumofjanda wrote: »

Hi Niggly & Amersall & Di,

I was told today that the 8% simple interest is calculated as 1/12 of 8% of the premium so in my case the 1st premium of £20ish attracted 14p,added to the premium for the next month, a further 1/12 of 8% of £20.14ish and so on to july 2011!
I'm still totally flummoxed because:
a) now being told you do get interest to date of refund
b)when I used the calculator from this forum and input the premiums at 8% the figure it came to for just the 5 year period of the loan came to exactly what I have been offered which lead me to believe I hadn't been offered anything for the 5 years since I finished paying the loan.
c) What figure do they use for adding interest from the loan end date to refund date?



Sorry to keep harping on!

Any thoughts on this?

The best comment I get in the classroom is Sir I dont get it so stop worrying and lets see if I can help.

The policy ran for 5 years and you paid monthly ppi payments.
On these payments you have got it right. The first payment of £20 gets 8%/12 x 60 and so on.

After 5 years the policy stopped and so did the payments of £20 per month.

So after 5 years of paying you get the premiums refunded and the interest at 8%. This gives you a nice little lump sum.

This has been sat there for 6 years so because you havent had it back for 6 years the nice people at FOS have said the firm who have held this lump sum have to pay 8% interest on this lump sum from the date the policy ended to the date the calculation and refund is made.

So on £20 per month over 5 years the total premiums are £1200.
8% interest on each £20 payments are £279.33

The lump sum after 5 years is £1200 + 279.33 = £1479.33

You then get 8% simple interest for 6 years on £1479.33 = £710.40

So I think you offer based on £20 per month should be

£1479.33 + £710.43 = £2189.76 is this approx what you have been offered.

Sir

mumofjanda

Niggly wrote: »

The best comment I get in the classroom is Sir I dont get it so stop worrying and lets see if I can help.

The policy ran for 5 years and you paid monthly ppi payments.
On these payments you have got it right. The first payment of £20 gets 8%/12 x 60 and so on.

After 5 years the policy stopped and so did the payments of £20 per month.

So after 5 years of paying you get the premiums refunded and the interest at 8%. This gives you a nice little lump sum.

This has been sat there for 6 years so because you havent had it back for 6 years the nice people at FOS have said the firm who have held this lump sum have to pay 8% interest on this lump sum from the date the policy ended to the date the calculation and refund is made.

So on £20 per month over 5 years the total premiums are £1200.
8% interest on each £20 payments are £279.33

The lump sum after 5 years is £1200 + 279.33 = £1479.33

You then get 8% simple interest for 6 years on £1479.33 = £710.40

So I think you offer based on £20 per month should be

£1479.33 + £710.43 = £2189.76 is this approx what you have been offered.

Sir

I have been offered:

A. Total mthly premiums paid until Nov 2005.......£1233.00
B. Statutory interest on A until 31/07/11...........£809.67

Total £2042.67

Seems about right then!

Think I get it now! You've explained it really well....but don't test me tomorrow!!!

Thank you so much:T

di3004

mumofjanda wrote: »

Hi Niggly & Amersall & Di,

I was told today that the 8% simple interest is calculated as 1/12 of 8% of the premium so in my case the 1st premium of £20ish attracted 14p,added to the premium for the next month, a further 1/12 of 8% of £20.14ish and so on to july 2011!
I'm still totally flummoxed because:
a) now being told you do get interest to date of refund
b)when I used the calculator from this forum and input the premiums at 8% the figure it came to for just the 5 year period of the loan came to exactly what I have been offered which lead me to believe I hadn't been offered anything for the 5 years since I finished paying the loan.
c) What figure do they use for adding interest from the loan end date to refund date?



Sorry to keep harping on!

Any thoughts on this?

Hiya

Hey your not harping on lol :rotfl::D lol.


I'm late again tonight, but can see the post has been answered x;)

Niggly_2

mumofjanda wrote: »

I have been offered:

A. Total mthly premiums paid until Nov 2005.......£1233.00
B. Statutory interest on A until 31/07/11...........£809.67

Total £2042.67

Seems about right then!

Think I get it now!

Thank you so much:T

seems about right. They have probably used yearly interest where my calculator is daily.

N

mumofjanda

Niggly wrote: »

seems about right. They have probably used yearly interest where my calculator is daily.

N

Thanks again Niggly!

Think I will accept the offer and the first thing I'm going to buy is a calculator like yours!:D

Smamfer

IANC wrote: »

I would be questioning what the 'Rebate Refund' is.

You have received the premiums back that you paid, which is good.

They have returned the interest based on the APR of the card, which is excellent.

But from what I can tell, you haven't received the 8% statutory interest on top.

Oh and you are welcome for my part in providing figures

Hi Again :cool:

Got the letter from Halifax today regarding the ppi payment they gave to me so thought i would pop it on here and see if you can shed some light...

Dear Miss Wotsitface ,,

Writing in relation to claim etc, Thanks for patience
Goes on to state about british bankers assoc and fsa etc
Then says
As our final response we would like to offer you £621.99 to bring your complaint to a conclusion. Accepting this offer will ensure you are put back to the same position you would be in if you had not taken out ppi in relation to your cc
This amount is made up of a refund of all the ppi premiums paid plus any applicable interested incurred on the account because of hte ppi premiums on your cc, plus simple interest at 8%
The payment will also take into account any other factors that are relevant to your circumstances,.

Calculations are>>

Refund of premiums £392.34
Refund of interest applied to your account because of ppi £225.53
Interest at 8% , calculated up until 19th August 2011 £4.12

So does this sound like it is about right or has something been missed off as i know your first calculation you thought it could be around the 900 mark

thanks xxx

scottishmum_2

di3004 wrote: »

Hello there

Wishing you luck on reclaims, and hope you hear some good news soon.

The usual timescales is that of 8 weeks, but the main of the banks etc have been given extra time by the FSA due to the backlogs.

How long have you had your reclaims in?

I have had my claims in since the start of March.

IANC

Smamfer wrote: »

Hi Again :cool:

Got the letter from Halifax today regarding the ppi payment they gave to me so thought i would pop it on here and see if you can shed some light...

Dear Miss Wotsitface ,,

Writing in relation to claim etc, Thanks for patience
Goes on to state about british bankers assoc and fsa etc
Then says
As our final response we would like to offer you £621.99 to bring your complaint to a conclusion. Accepting this offer will ensure you are put back to the same position you would be in if you had not taken out ppi in relation to your cc
This amount is made up of a refund of all the ppi premiums paid plus any applicable interested incurred on the account because of hte ppi premiums on your cc, plus simple interest at 8%
The payment will also take into account any other factors that are relevant to your circumstances,.

Calculations are>>

Refund of premiums £392.34
Refund of interest applied to your account because of ppi £225.53
Interest at 8% , calculated up until 19th August 2011 £4.12

So does this sound like it is about right or has something been missed off as i know your first calculation you thought it could be around the 900 mark

thanks xxx

I personally think that the 8% interest should amount to far more than that.

Call the claims handler and ask why the 8% interest hasn't been applied from the start of the PPI payments until the present day.

It sound to me that they have only offered you 8% interest based on the time that has elapsed since they completed the complaint.

Ie a matter of days or possibly weeks.

Ask them to clarify their 8% calculation in writing.

di3004

scottishmum wrote: »

I have had my claims in since the start of March.

Hiya

You should certainly hear something before the end of August then, I know someone posted up earlier and they seem to still be waiting on a reclaim from last October :eek:, it's not fair is it?

Actually, I have since came across another 2 via Lloyds from the mid 90's and I think I will be lucky if I hear of any decision this year, with them being lots older as well will be an issue.

All crossed here for you, and please keep us posted, and keep nagging at them, good luck x;)

thehullram

mumofjanda wrote: »

This is the number that I used to contact them:

0871 522 5167

This is the Complaints Resolution Team Morley Leeds.

Good Luck!!

Thanks for this