Second opinion on PPI calculation

ivehadenough1

I have had a decision on one of my loans and I just want a second opinion on the calculation as I get a different figure to what I have been sent

PPI Premium to be refunded - £807.12
Interest On Premium - £199.39
Extra Amount Paid when refinanced - £795.04
Total - £1,801.55

The start date of the loan was 22 Years and 12 days prior to the decision letter, for ease we will call it 22 years.
8% of £1801.55 is £144.12
22 x £144.12 = £3170.64 (Gross Interest)

Is this the correct way of working it out? The finance company has worked out the interest as £2617.35

[Deleted User]

Not sure why you need a second opinion.
PPI redress is defined by the Regulator as a full refund of all PPI paid plus 8% simple interest. Go to the FOS website if you want to know the exact formula to confirm what you've been awarded.

Bermonia

Your calculation is wrong, you didn’t pay those funds all up front 22 years ago - simple interest is calculated on each payme

Bermonia

Your calculations are wrong, simple interest is applied from on each payment made towards the PPI and should be applied from the date of payment - I doubt very much you paid all these funds from the outset so therefore your calculations are always going to be far more generous than the actual redress due.

As already advised PPI redress is defined by FOS as such firms calculations will be online with this guidance, if unclear speak with seller first as FOS could well take months just to be told ‘it’s correct’

[Deleted User]

Bermonia wrote: »

As already advised PPI redress is defined by FOS as such firms calculations will be online with this guidance, if unclear speak with seller first as FOS could well take months just to be told ‘it’s correct’

I wasn't suggesting the OP ask FOS to check the redress, but rather simply to go to the FOS website for the calculation formula.

There is also a "sticky" thread at the top of this forum explaining exactly how FOS calculate the redress;

https://forums.moneysavingexpert.com/discussion/1596473/how-fos-calculate-refunds


Looks to be a waste of the OP's time in any case; time he could be spending enjoying his (correctly calculated) redress!