First direct refunding my loan interest!!

SalsaDanca

I've tried to work out the monthly balance and interest using the figures you've given. The repayment in my speadsheet doesn't quite match yours, so my figures aren't quite right, but they'll give you an idea.

In August 2011, the monthly interest was £115
In August 2016, the monthly interest was £26.
The total interest charged from August 2011 to August 2016 was £4,521.

Date    Payment   Interest  Balance
08/10                                 -£16,200.00
09/10   £264.58   -£127.94   -£16,063.36
10/10   £264.58   -£126.86   -£15,925.65
11/10   £264.58   -£125.78   -£15,786.84
12/10   £264.58   -£124.68   -£15,646.95
01/11   £264.58   -£123.58   -£15,505.94
02/11   £264.58   -£122.46   -£15,363.82
03/11   £264.58   -£121.34   -£15,220.58
04/11   £264.58   -£120.21   -£15,076.21
05/11   £264.58   -£119.07   -£14,930.70
06/11   £264.58   -£117.92   -£14,784.04
07/11   £264.58   -£116.76   -£14,636.22
08/11   £264.59   -£115.59   -£14,487.22
09/11   £264.58   -£114.42   -£14,337.06
10/11   £264.59   -£113.23   -£14,185.70
11/11   £264.58   -£112.04   -£14,033.15
12/11   £264.59   -£110.83   -£13,879.39
01/12   £264.58   -£109.62   -£13,724.43
02/12   £264.59   -£108.39   -£13,568.23
03/12   £264.58   -£107.16   -£13,410.81
04/12   £264.59   -£105.92   -£13,252.14
05/12   £264.58   -£104.66   -£13,092.22
06/12   £264.59   -£103.40   -£12,931.03
07/12   £264.58   -£102.13   -£12,768.57
08/12   £264.59   -£100.84   -£12,604.83
09/12   £264.58   -£099.55   -£12,439.79
10/12   £264.59   -£098.25   -£12,273.45
11/12   £264.58   -£096.93   -£12,105.80
12/12   £264.59   -£095.61   -£11,936.82
01/13   £264.58   -£094.27   -£11,766.52
02/13   £264.59   -£092.93   -£11,594.86
03/13   £264.58   -£091.57   -£11,421.85
04/13   £264.59   -£090.21   -£11,247.47
05/13   £264.58   -£088.83   -£11,071.72
06/13   £264.59   -£087.44   -£10,894.57
07/13   £264.58   -£086.04   -£10,716.03
08/13   £264.59   -£084.63   -£10,536.07
09/13   £264.58   -£083.21   -£10,354.70
10/13   £264.59   -£081.78   -£10,171.89
11/13   £264.58   -£080.34   -£09,987.65
12/13   £264.59   -£078.88   -£09,801.94
01/14   £264.58   -£077.41   -£09,614.77
02/14   £264.59   -£075.94   -£09,426.11
03/14   £264.58   -£074.45   -£09,235.98
04/14   £264.59   -£072.94   -£09,044.33
05/14   £264.58   -£071.43   -£08,851.18
06/14   £264.59   -£069.90   -£08,656.50
07/14   £264.58   -£068.37   -£08,460.28
08/14   £264.59   -£066.82   -£08,262.51
09/14   £264.58   -£065.26   -£08,063.19
10/14   £264.59   -£063.68   -£07,862.28
11/14   £264.58   -£062.09   -£07,659.79
12/14   £264.59   -£060.50   -£07,455.70
01/15   £264.58   -£058.88   -£07,250.00
02/15   £264.59   -£057.26   -£07,042.67
03/15   £264.58   -£055.62   -£06,833.71
04/15   £264.59   -£053.97   -£06,623.09
05/15   £264.58   -£052.31   -£06,410.82
06/15   £264.59   -£050.63   -£06,196.86
07/15   £264.58   -£048.94   -£05,981.22
08/15   £264.59   -£047.24   -£05,763.87
09/15   £264.58   -£045.52   -£05,544.81
10/15   £264.59   -£043.79   -£05,324.01
11/15   £264.58   -£042.05   -£05,101.48
12/15   £264.59   -£040.29   -£04,877.18
01/16   £264.58   -£038.52   -£04,651.12
02/16   £264.59   -£036.73   -£04,423.26
03/16   £264.58   -£034.93   -£04,193.62
04/16   £264.59   -£033.12   -£03,962.15
05/16   £264.58   -£031.29   -£03,728.86
06/16   £264.59   -£029.45   -£03,493.72
07/16   £264.58   -£027.59   -£03,256.73
08/16   £264.59   -£025.72   -£03,017.86
09/16   £264.58   -£023.83   -£02,777.12
10/16   £264.59   -£021.93   -£02,534.46
11/16   £264.58   -£020.02   -£02,289.90
12/16   £264.59   -£018.09   -£02,043.39
01/17   £264.58   -£016.14   -£01,794.95
02/17   £264.59   -£014.18   -£01,544.53
03/17   £264.58   -£012.20   -£01,292.15
04/17   £264.59   -£010.21   -£01,037.77
05/17   £264.58   -£008.20   -£00,781.38
06/17   £264.59   -£006.17   -£00,522.96
07/17   £264.58   -£004.13   -£00,262.52
08/17   £264.59   -£002.07    £00,000.00

cinderella345

Wow - that's brilliant thank you!

That's the kind of figure I was thinking it should be.

I have no idea how they have calculated the £510 figure. I was hoping they had put the decimal place in the wrong place!! lol!!

If the £510 is correct then the letters they have sent out are very misleading and make no sense.

Thank you!

Robin9

Ask yourself why should FD refund ALL of the interest payable for that period.

Surely what they will be doing is refunding the excess interest charged for that period eg you paid £6010 but should have paid £5500

cinderella345

You may well be correct and actually I think that's what they probably are doing. This came completely out of the blue and it's something they have to do because they didn't adhere to really strict guidelines apparently.

However the reason they gave me for the refund in the letter is this (word for word):

We recently reviewed our personal loan annual statements and found some covered the wrong period. We've enclosed all of the annual statements we have sent you up until we rectified the mistake. We'll refund all the interest you were charged from the date of your first incorrect statement to the day we expect you to receive the ones enclosed.

So I would read this (maybe I am reading it wrongly) to mean every penny of interest we were charged not just the excess interest.

cinderella345

Hi

No they are refunding to 2016 (they say "to the date we expect you to receive the revised statements - which was 10th September 2016")

I also did wonder if they were paying off the balance and refunding the difference which would make more sense. But the conversation I briefly had with the normal call handler at FD last week was that they wouldn't do that they would just refund all the cash to our bank account.

It's just so frustrating that they won't let you speak to anyone who knows what they are talking about there - apparently they will only deal with people in writing!!!!!

SalsaDanca

Hi, I realised that my second message was wrong so I deleted it while you were replying.

Clive_Woody

cinderella345 wrote: »

Hi

No they are refunding to 2016 (they say "to the date we expect you to receive the revised statements - which was 10th September 2016")

I also did wonder if they were paying off the balance and refunding the difference which would make more sense. But the conversation I briefly had with the normal call handler at FD last week was that they wouldn't do that they would just refund all the cash to our bank account.

It's just so frustrating that they won't let you speak to anyone who knows what they are talking about there - apparently they will only deal with people in writing!!!!!

MSE are always raving about how great FD are for customer service so I would wait and see what they come back with and how they explain their calculations. The figure paid out does seem low so I would definitely keep pushing for an explanation.

maninthestreet

They are refunding the interest for the period where they were not compliant with Consumer Credit Act of 1974.

glentoran99

have the written off the rest of the loan and that's the surplus?