Capital One CC PPI claim offer

Andy_Joy

Hi
After a lengthy wait, an initial declined PPI claim from Capital One was turned around by the FOS.
Capital one then said that they would offer me a settlement in line with the FOS pay-outs.
After receiving the initial redress letter I was told the total of the PPI Payments was £783.91. This seemed low to me, I then requested the statements from Capital One detailing the balance every month the card and PPI was active. May 2002 to Apr 2008.
When calculating the PPI owed every month from the balance (0.89p / £100) I got a total of £931. This was a bit higher than they “calculated”.
Also I was wondering how they got to the associated interest value of £71.13 and additional interest of 8% (£578.85)
I think I have worked out that every month I was charged an interest of 2.11% (after the interest free period finished), this means the credit card had an APR of 25.32%.
As the first amount of PPI was wrong, I am not confident the other values are correct either.
Could anyone shed some light on the associated interest and then the 8% statutory interest they are going to pay me?

Thanks


Andy

-taff

Interest comes from interest applied to the amount of PPI aded, not your cards interest.
8% simple interest is basically your additonal compensation for being missold.
Did you calculate the balance of PPI added each month? It would have appeared on the statement, and there's no need to work it........

Andy_Joy

I only got a simplified breakdown of each months Minimum payment, Credit limit and New balance. I have no statements from back then.

I knew the PPI was 0.89p / £100 from the PPI summary of cover document they sent at the start of the claim.

But what i could not work out was how they got to 578.85 from a total of 783.91 PPI premiums. 8% of that value is 62.71.

Is the 8% interest for each year since the start of the PPI insurance? If so that is 13 years of 8%. That should be more than 578.85.

This is what i am not clear on, my brain is starting to hurt!

Thanks

-taff

It's 8% simple per year on that years interest, it's not compound.


About half way down explains the calculations

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

brown1950

-taff wrote: »

Interest comes from interest applied to the amount of PPI aded, not your cards interest.
8% simple interest is basically your additonal compensation for being missold.
Did you calculate the balance of PPI added each month? It would have appeared on the statement, and there's no need to work it........

What is you take on 'Associated Interest' ????

The FOS state and i quote :-

''
other approaches taken by businesses

Some businesses take a different approach, or at least present their calculations differently to consumers. Some businesses present their redress calculations as:
• a refund of the PPI premiums plus interest at the credit card rate; and
• interest at 8% per year simple (without identifying what they are adding this interest to).


I am aware at the moment the FOS are looking into how MNBA and Barclays have been calculating the 'associated interest' on credit card
redress.

-taff

I have no take on it?
I'm pointing them in the direction of answers.

Andy_Joy

According to Capital One, the associated interest is the interest of the balance when by deducting the PPI the account become credited.

Or the interest on the amount I wouldn’t have needed to pay if PPI wasn’t added to the debt at the time.
This is how I took the meaning to be, I hope that’s correct.
The 8% also seems to be in the right order
I just felt the PPI payments were going to more after I got a value of just under £700 PPI payments from an MBNA card I only had for 18 months compared with the 71 months of Capital one credit card.
That’s the problem with comparing PPI claims.

-taff

It depended on the balance of the card at the time.
You could have sent them a SAR and asked for all info, including statements so you could have worked it out exactly. You still can if you like.