Santander offer - confused

Dollymix12

I had a loan with Santander for 16k which had PPI with it, there was no separate payment the payments were made in with the loan payment. I raised a complaint a few weeks ago as I was advised that the PPI was definitely suitable for me but I have since discovered it wasn't, I had 2 jobs at the time so didn't need the redundancy cover, I had death in service cover at work (3 times my yearly salary) and 6 months full sick pay. I have just spoken to Santander who have advised that they have sent an offer to me for £2,700. It's confused me a bit because the loan was 16k but I paid it off within a year, would the PPI really of been this high? I know at least 700-1000 of this will be interest but it seems a very high amount!

-taff

Your redress will also be comprised of 8% simple interest added...

Dollymix12

I assume that will b around £1,000 maybe a bit more but that still means they say that I paid £1,700 PPI in less than a year it's around £140 per month! My monthly payments were around £400 so are they saying that over a quarter of it was PPI?

-taff

when did you have this loan?

amersall

If you paid it off in the first 12 months, you will have received a very good rebate of the PPI. They take this off the total redress.
Ask them for a breakdown of the figures and then you will know if it is correct.

amersall

Sounds about right after the rebate plus the 8%.

Dollymix12

Suppose I just wasn't expecting it to be so much, I will wait for the letter and see if there are detail on how they have worked it out, the loan was paid off in 2006