Calculating Credit Card PPi (Co Operative Bank) Is this right?

charlie_croker

Hello folks,

I have got back £700 on a consolidation loan from Natwest I didn't know I had using ismart for the donkey work then applied myself. The figure seemed fair.

The other one they found was the Co Op credit card.

I took out in December 2002.
The balance of my card was between £3000 to £5000
over let's assume 10 years rather than the full period of 2002 to 2016 as of course the balance of £3000 probably did not grow until 2 years in at least.

So between 2004 to 2013 the average balance was around say £4000 for ease of estimating.


The Co Op confirmed I did have PPi.
The balance the Co Op calculated that I was owed PPi up to July 2016 though card stopped 3 years earlier and not used and interest was frozen in 2013.( Paid off through Stepchange repayment plan)

Now....
all the online calculators I've found don't all add up giving vastly different amounts - but I can't make sense of their (the Co Op's figures either).
Some late payment charges included and then some other figures.

Now if most sites list PPi on cards to be 1% of balance plus 20% at end of year I'm confused.
Is the 1% every month or at year end?
If it is annually then this still seems like a very lowball offer. If it's say £30 per year as 1% of 3000 then over 10 to 12 years it surely is more than this? My balance was rarely if ever below £3k and stayed at max limit of £5K for years.

The breakdown is below and it just seems very low compared to other people's I've read.

Can anybody help please?
- I have some statements but not lots having moved I got rid of a lot of paper. This is the only breakdown I got from them.

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refund of charges £68.00

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debit interest £9.54

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8% simple interest £21.44

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Total £98.98

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the figure above is from refunded late payment charges I believe.

The other costings are below.

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Total CCPPi accrued to 14-Jul-16 ¦ £92.37

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CC Interest accrued to on above to 14-Jul-16 ¦ £12.85

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8% Interest on any notional credit card balances¦ £48.81

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Closed without arrears ¦ Yes

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Post Closure Balance liable for 8% ¦ £105.02

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Post Closure Interest @ 8% simple to 05-Mar-17

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Total Redress Due ¦ £159.21

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Total Untaxed 8% Interest payment ¦ £54.19

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Less Tax Calculated ¦ -£10.83

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net total 8% ¦ £43.36

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Net Redress Payable ¦ £148.38

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I'm running out of time to accept their offer - only couple more days but as it's such a small amount may be worth going to ombudsman in case it is much higher - if not worst is I get £150.

Nasqueron

PPI is charged at around 70-80p per £100 of debt, not sure where you got this 1% of balance or 20% at the end of the year - it's calculated monthly depending on how much debt there is on the card

Did you provide copies of the statements you have to the co-op to show you paid it or did they confirm they know how much there was based on their records?

charlie_croker

Thanks for replying,

that 1% figure plus 20% at year end was quoted liberally on legal beagles and mainly on several on-line calculators and sites I was looking at trying to see what the figure should be.

The Co Op confirmed that I was owed it from their records. I have some statements but not loads - a lot lost and binned when moving house
(moved 3 times in 2 years including a time with stuff in storage).

I would have owed them around £5K for several years. Card taken out in 2002.
That figure perhaps didn't grow till couple of years in -

that's why I say let's peg it at say £3000 from 2004 or 2005 through to July 2016 when the debt was paid in full.

So if for arguments sake I owed £3000 every year for 10 to 11 years am I owed more than £148.00?

Nasqueron

The refund process for PPI is defined, a refund of all premiums paid and where the account would have been in credit were it not for the PPI, interest on that amount at 8%

PPI was categorically not charged with a 20% year end fee, it's an insurance based on how much you owe every month. It is possible a company may have gone with 1% (£1 per £100) but that would be at the high end as most charged less

If you did genuinely have a rough average of £3000 for 10 years and they charged 1% then yes you would be owed more but there must be a reason why they came to that sum.

You said you have some statements, as PPI would be listed on there, what does it say you were charged on those statements?

I'd ring and ask if they can confirm they have a monthly breakdown year on year especially if you have various statements showing you paid more.

It's also possible they have offset some against unpaid debts (that includes interest freezes) so I'd check that too

charlie_croker

yes I think I will call them.
Interest freeze would only have been 3 years of the 14 years I had card with them up to July 2016.
If say the amount came to about £3000 after 2 to 3 years in that still leaves around 9 years at min of £3000 balance.

The breakdown above is what I have and it doesn't add up from one side to another as far as I can make out.

It's certainly not worth jumping in for a quick £150 if I'm potentially owed more. If it takes a year with Ombudsman then so be it.