PPI query

angelicious

Hey everyone


Looking a bit of advice if anyone can help please. I currently have a PPI claim in for a bank loan. The bank loan dates from 2002, they have made me an offer but have only calculated interest over the term of the loan i.e. 4 years not up until now. Is this right or should they have to pay interest fro every year up until now.


Thanks in advance for your help.

amersall

Did you get interest at 8% in the calculation?

angelicious

Yes, interest was at 8%

amersall

Did you get a breakdown of what they gave you?.
PPI... interest on PPI......plus 8 %?.

The 8% interest is separate to the loan PPI.

They are correct with the interest on the loan PPI if it was a four year loan, hence the question, did you get the 8%, not to be confused with the interest on the actual PPI.

angelicious

Thanks Amersall. Breakdown is as follows:


PPI premiums £833
Gross interest payment £826
Tax deducted from interest £165
Net Interest payment £661
NET TOTAL AMOUNT £1495


As well should they be deducting tax from the amount.


Thanks in advance

amersall

Yes, they take tax from the 8%.
PPI premiums include the interest on those.
Gross interest is the 8%.

You may be able to claim the interest back, you will need to contact HMRC, you can do this online using the R40 form.

Your actual PPI monthly payment would have been about £17 a month, the 8% is on a decreasing scale for each PPI monthly payment so, the nearer the redress date you get, the less each month the 8% is.

I am not sure how they work the 8% out off the top of my head.
You could use the interest calculator https://www.moneysavingexpert.com/reclaim/bank-charges
Go down to interest calculator, put in the monthly PPI payment (£17.00) the date each month and don't forget to add to charges, you could be all night as you have to go from each year and every month from 2002 to the day they paid you out !!!.

Hopefully someone may post who has a rough idea if the 8% is correct without using their fingers :rotfl: Hope this helps.

amersall

By the way, well done on your win :beer:

angelicious

Thanks so much Amersall for all your help. I'm sorry to be a torture but I'm new to all this PPI stuff. Do they have to pay interest just for the 4 years of the loan or until they pay out this year?

amersall

They pay you the PPI back for the 4 years you had the loan with the interest on that, they have given you that.

It is the 8% that you get from the start of the loan to the day they pay you out, these are different "interests".

angelicious

Thanks so much Amersall for all your help. As far as I can see they've only paid interest for the term of the loan and no further so I'll contact them again tomorrow.

amersall

The Gross interest is the 8% that is why they have taken tax off.
Do you know how much the actual PPI was on the loan?.