Ppi rbs redress outcome

Tatianna

Hi there,

I have recently had a PPI COMPLAINT upheld with RBS

I recieved my final outcome letter today but I am still left feeling slightly confused and wonder if I
am owed a bit more. i don't have all the information on the personal loan like interest rate but feel that it doesnt quit add up

I took out a loan on May 2nd 2007 - £1000

I then apparently took out another loan on 27th May 2007 - £ 1500 to cover the first loan (i can't remember why this was done)

This being a chain loan

I was always under the impression that I only took out a loan of £1000 at this time so this confuses me

I paid my final payment for the loan on March 27th 2012

I was paying payments of £37.78 over 5 years / 60 months so this totals to £2229.02 that I paid for the whole loan of £1000
the rest being a combination of interest and PPI ( £1229.02)

The banks offer is for the first Loan
PPI REFUND £8.19
STATUTORY INTEREST £6.68
20% TAX £1.34
NET offer £13.53

The banks offer for second loan
PPI REFUND £59.44
STATUTORY INTEREST £36.41
20% TAX £7.28
NET offer £88.57

now i'm really sorry if i have got it all wrong but I just feel a bit confused with this out come. This would make the total PPI PAID £67.63 Over 5 years and the itnerest being £1161.39?

in the letter they do not break down my interest and ppi so that its clear. if anyone can make sense of this I would be grateful !

Kind regards :-)

Nearlyold

Not really sure what you are asking. If you borrowed £1500 27/05/07 to replace the previous £1000 loan plus £500 extra then your total interest and PPI would be the difference between what your total payments added up to (you give the figure as £2229.02 though 60 x £37.78 is £2266.8) and the amount borrowed (£1500) which based on your figures would be £729.02 less the PPI (£59.44) = £669.58 paid in interest. This equates to 8.92% interest pa flat or around 18% APR which all sounds about right. What is your basis for thinking you must be owed more?

dunstonh

If you repay a loan early, you get a rebate of the PPI as part of the settlement figure. So, early repayment could be the reason you are not getting much. Plus, its only £1000 borrowed. So, the PPI premium would have been tiny.

Tatianna

I did not settle the loan early . I repaid over 5 years

Tatianna

hi thanks for your reply - okay what i am asking is that £1161.39 seems a lot of interest to pay? I was under the impression that my loan was £1000 and that the second £1500 loan was just a front loaded ppi loan so the excess £500 was ppi added on as I know that i did not ask for second loan
what you describes does make sense if i had taken an extra £500 added to the loan
ah it's just all very confusing....and the calculations I made was that I was paying around £10 a month ppi not 0.99p per month over 5 years

antrobus

Tatianna wrote: »

I did not settle the loan early . I repaid over 5 years

In your OP you state that "I took out a loan on May 2nd 2007 - £1000 I then apparently took out another loan on 27th May 2007 - £ 1500 to cover the first loan"

A loan that was only active for 25 days might well have meant that you only paid £8.19 worth of PPI.

If you think that you paid more PPI on that second loan that you took to term than the £59.44 quoted by RBS, you are going to have to query that with RBS. Do you have the original loan documents?

Tatianna

hi, No i do not have the original documents unfortunately. i guess i could send an sar but i am unsure on the time limit i have to make a decision on accepting their offer

Nearlyold

Tatianna wrote: »

hi thanks for your reply - okay what i am asking is that £1161.39 seems a lot of interest to pay? I was under the impression that my loan was £1000 and that the second £1500 loan was just a front loaded ppi loan so the excess £500 was ppi added on as I know that i did not ask for second loan
what you describes does make sense if i had taken an extra £500 added to the loan
ah it's just all very confusing....and the calculations I made was that I was paying around £10 a month ppi not 0.99p per month over 5 years

PPI was not always good value in comparison to the actual risk covered but there is no way the PPI premium on a loan of £1,000 would be £500.

Tatianna

Okay thanks for your help :-)