Help with a PPI calculation please.

deaster

Hi, I have just been offered a settlement by the Co-Op which seems low to me and I just cannot work out how they have arrived at the figure they have given. The details are as follows:
£2500 loan over 24 months
loan start 06/05/1992 - no missed payments / not paid off early / not claimed on.
PPI amount £555.49
Monthly repayments £154.51 x 23 + 1 x £154.30

Co-Op have offered £1288.14 as follows:
PPI refund £28.09 x 24 = £674.16
8% simple on each payment to 10th March 2018 = £767.47
This totals £1441.63
Less £153.49 tax due on 8% interest payment gives the grand total £1288.14

I am confused by the 8% simple calculation and I also think they should be paying 15% on part of this loan as it was pre April 1993?
Any help greatly appreciated.

amersall

Redress is defined, you have the PPI and the 8%, it is correct.

Don't know regarding the 15% to be honest, I have never heard of this, someone else may post who may be able to help you.

If you are a non taxpayer or, the 8% does not take you over your tax allowance for 2016/2017, you can claim this payment back from HMRC using form R40.

[Deleted User]

deaster wrote: »

I am confused by the 8% simple calculation and I also think they should be paying 15% on part of this loan as it was pre April 1993?

No idea what ruling you are trying to apply here.

PPI redress is defined as a full refund of the policy plus 8% simple interest; no more, no less.

There is no year in which this increases or decreases. 1993 has no significance to PPI complaints.

The redress you detail is correct.

If you remain unconvinced, ask the bank for a breakdown of the redress offer.

Partridge89

At least one lender (not the one in question here) uses 15% before the date quoted above and 8% after.

[Deleted User]

Partridge89 wrote: »

At least one lender (not the one in question here) uses 15% before the date quoted above and 8% after.

Which one and why?

Nasqueron

Moneyineptitude wrote: »

Which one and why?

FOS say they will sometimes award 15% for refunds prior to 1/4/1993 but only where the details are not known (see below) which is why OP is probably confused - as the bank know the details they won't refund 15%

http://www.financial-ombudsman.org.uk/faq/businesses/answers/redress_a4.html

Placida

Moneyineptitude wrote: »

No idea what ruling you are trying to apply here.

Possibly The Judgment Debts (Rate of Interest) Order 1993 which came into force on 1st April 1993. This Order reduced from 15 per cent. to 8 per cent. per annum the rate of interest on judgment debts under section 17 of the Judgments Act 1838.

Moneyineptitude wrote: »

PPI redress is defined as a full refund of the policy plus 8% simple interest; no more, no less.

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

how does the ombudsman approach redress where a PPI policy has been mis-sold?
Redress for a mis-sold single-premium PPI policy attached to a loan.

We will tell the business to add interest to each overpayment to compensate the consumer for the loss of use of their money. Our usual rate is 8% per year simple from 1 April 1993 - and at 15% simple per year before that.

Moneyineptitude wrote: »

There is no year in which this increases or decreases. 1993 has no significance to PPI complaints.

as above