PPI Reclaiming successes and failures

di3004

amersall wrote: »

:j:j:j:j YAAAAY :A:A:A:A You deserve this :D:D just for your sheer endurance :T:T:T:T:T

Aww thank you :A:beer: I am so relieved to say this is finally resolved at last lol, cheers honey xxxxxx:A:A

di3004

dilus wrote: »

Couldn't agree more, well done Di

Thank you so much xx:beer::A

di3004

mumofjanda wrote: »

Hi Di,

Thank you for the advice. As you say, no harm in asking,so I'll be sending a letter over the week end.

Well done on your success this week, very much deserved!:T:T:T

Certainly inspires me to keep at 'em until we get our money back!:D

Thank you honey xx:A:beer:

And that's the spirit! :T:T

djf1968

Hi all

A little while ago I posted about a successful claim for PPI on a HSBC loan. I was more than happy with the amount and rather than pay off the loan, as first offered, the bank agreed that I could have the money back and restructure the loan. I went in to my local branch today to do this, but now on reflection I am not sure the figures add up and would like some advice.

To help those of you who are good with the numbers I have detailed the original loan amount below, along with the PPI refund information as provided by HSBC (I have already accepted this as it was more than I expected and I am more than happy with it - however has it led to an incorrect restructuring loan value?)


Original loan amount: 25,000
Period of loan:98 months
Interest on loan (6.5%): 7,247.80
PPI: 7430
Interest on PPI:2154.16
Total loan (inc PPI):32430
Total loan + interest = 41831,96

Payments made: 1 x 435.71 (of which 335.40 was the loan and 100.31 was PPI) followed by 58 payments of 435.75 which was made up of 335.92 for the loan and 99.82 for the PPI.

PPI refund info:

PPI premium redress: 8670.06
Plus taxable interest at 8%: 1704.12
Total :10374.18

Balance outstanding on loan: 14287.14

The latter figure is what I am unsure of. The reason for this is if I look at the payments made (not including PPI) then they total 19,818.76 (1 x 335.4 and 58 x 335.92), this leaves a balance on the loan of 12,429.04

So, first question is am I right in calculating the loan balance like I have? I have done it as if the PPI was never there and literally deducted payments made to date from the original amount of the 25k loan + interest.

OK, next issue is that I go in to the branch today and sign a new agreement to restructure the loan. The amount they have is 14280 (not going to quibble about the 7.14 difference as it is in my favour) and they say that I need to repay over the remaining 39 months.

They add interest at 6.5% as before and I have a new total loan amount of 15833.77. Repayments are at around 405 a month (I am still struggling to get my head around how the PPI taken off has only reduced the loan repayment to 405 from 435 when the PPI originally was at 99 a month).

So my question, was the 'balance' as quoted on the PPI refund letter correct and if not should I contact the PPI reclaim people or go back to the branch?

Any help on this would be most appreciated. I am still happy with my total PPI reclaim amount, but do not want to feel that I am giving them something back just because I did not fully work out the figures.

Thanks in advance

Dave

di3004

djf1968 wrote: »

Hi all

A little while ago I posted about a successful claim for PPI on a HSBC loan. I was more than happy with the amount and rather than pay off the loan, as first offered, the bank agreed that I could have the money back and restructure the loan. I went in to my local branch today to do this, but now on reflection I am not sure the figures add up and would like some advice.

To help those of you who are good with the numbers I have detailed the original loan amount below, along with the PPI refund information as provided by HSBC (I have already accepted this as it was more than I expected and I am more than happy with it - however has it led to an incorrect restructuring loan value?)


Original loan amount: 25,000
Period of loan:98 months
Interest on loan (6.5%): 7,247.80
PPI: 7430
Interest on PPI:2154.16
Total loan (inc PPI):32430
Total loan + interest = 41831,96

Payments made: 1 x 435.71 (of which 335.40 was the loan and 100.31 was PPI) followed by 58 payments of 435.75 which was made up of 335.92 for the loan and 99.82 for the PPI.

PPI refund info:

PPI premium redress: 8670.06
Plus taxable interest at 8%: 1704.12
Total :10374.18

Balance outstanding on loan: 14287.14

The latter figure is what I am unsure of. The reason for this is if I look at the payments made (not including PPI) then they total 19,818.76 (1 x 335.4 and 58 x 335.92), this leaves a balance on the loan of 12,429.04

So, first question is am I right in calculating the loan balance like I have? I have done it as if the PPI was never there and literally deducted payments made to date from the original amount of the 25k loan + interest.

OK, next issue is that I go in to the branch today and sign a new agreement to restructure the loan. The amount they have is 14280 (not going to quibble about the 7.14 difference as it is in my favour) and they say that I need to repay over the remaining 39 months.

They add interest at 6.5% as before and I have a new total loan amount of 15833.77. Repayments are at around 405 a month (I am still struggling to get my head around how the PPI taken off has only reduced the loan repayment to 405 from 435 when the PPI originally was at 99 a month).

So my question, was the 'balance' as quoted on the PPI refund letter correct and if not should I contact the PPI reclaim people or go back to the branch?

Any help on this would be most appreciated. I am still happy with my total PPI reclaim amount, but do not want to feel that I am giving them something back just because I did not fully work out the figures.

Thanks in advance

Dave

Hi Dave, well done on your success!:beer:

Hopefully someone will be along shortly to check these calcs out for you, good luck.;)

Niggly_2

jo-urney wrote: »

hi there, i just received my calculations and cheque from the fscs - could someone pls give their opinion on it as niggly looked at my figues and i was hoping for about 5 or 6 grand more...i will need to contact them if i dont agree with what they have offered, so if anyone is around today to help out i would be most grateful!

Original PPI Premium: £11,477.00

PLUS Interest charged to date on ppi payments: £ 4,350.26

LESS Benefits Received (No claims rebate): £ 5,600.76

LESS Rebate due upon cancellation: £0.00

PLUS Reasonable Rate of Return (compensation): £ 103.92

TOTAL COMPENSATION: £ 10,330.42

PAYOUT (90% paid after the initial £2000): £9697.38

the figures niggly worked out for my are on page 2 of 'how the fos calculate refunds' thread. it might be that the fscs dont follow the same sort of rules, but i feel something may have been missed here - or am i wrong and this all looks ok!

*i think its because i will be paying interest for the next 15 years that i feel i shold be compensated more for this??? but my letter states the fscs are following the fsa rules on paying compensation so i dont know.....

any help much appreciated.

thanks

jo

I did say in my post that the fscs are not used to dealing with cash back schemes and that you would have to fight tooth and nail to get back what is actually fair redress. I will look at this again and tell you what they have missed.

N

di3004

mumofjanda wrote: »

Thanks Di, You're a star!!

What would we do without you?

I've saved the letter to the computer so will send it off with a request they acknowledge receipt and give them 14 days to reply,I think. Will let you know what happens! Thanks again!

Excellent :T:T and your most welcome honey, you keep at them and let us know what happens, that will be great, fingers crossed xx:);)

missbling

hi. I emailed hsbc to chase an ongoing claim for ppi refund. they got back to me and said they sent a refund offer of £9960 on 3rd sept. I did not get this offer. I have responded by asking where it was sent and to resend to my current address.
my question is how do they pay out? the ppi claim was on a loan that they closed when I demanded they remove ppi, they replaced it with a new loan, with no ppi.
due to my husband leaving me and our toddler, times are hard right now and I have missed 3 payments on the current loan and I am going thru payplan under debt management.
current hsbc loan is about £7k left.
will they pay me direct or just clear the existing loan and send me the difference? if they do, it's going to cost me, cos stupidly used Belmont Thornton and they take 25% plus vat. worried.....

Derwent

djf1968 wrote: »

Hi all


They add interest at 6.5% as before and I have a new total loan amount of 15833.77. Repayments are at around 405 a month (I am still struggling to get my head around how the PPI taken off has only reduced the loan repayment to 405 from 435 when the PPI originally was at 99 a month).

The reason is that they are now charging you interest on interest.

By restructuring, the interest on the original loan now becomes part of the principal amount on the new loan and they charge you interest on the whole amount.

So Loan 1 was principal + interest.

But Loan 2 becomes (principal + interest) + interest.

Banks love restructured loans !

Derwent

missbling wrote: »

will they pay me direct or just clear the existing loan and send me the difference? if they do, it's going to cost me, cos stupidly used Belmont Thornton and they take 25% plus vat. worried.....

They will probably try to clear the existing loan and send you the difference so you need to make it clear to them that you don't want to do that and ask for the total to be refunded directly to you.

However, because you have arrears they can and will deduct the amount of the arrears from your payment.

Whatever happens the CMC will want their £3k whether its paid directly to you or not unfortunately.