Ppi claim calculations

Hound2001

Hi guys. Just in the process of submitting a PPI claim for a loan with avco Trust in 1998. I'm slightly unsure of exactly how to work out exactly what I'm in line for...
My PPI was £1680.29 and added to my loan amount of £4719.61. Total loan amount was £6400. 60 repayments of £185.58 meant repaid £11,100 in total. Apr was 25.8 and monthly interest was 1.90%. How do I work out what I'm due? I have read about statutory 8% on top of whatever I have overpaid, is that 8% per year for 20 years til now when I'm claiming? Thanks in advance.

Nasqueron

You wait until they agree you were miss-sold, then they send you a refund based on the define refund process, whatever your calculations say, it will have no effect at all on what they give you. Did you repay early, refinance etc?


8% simple interest too, not compound

Hound2001

Thanks. I was curious whether they just make you an offer or send a breakdown of how they arrived at their offer. I didn't repay early but as I posted, they added the PPI amount to my loan so obviously I got shafted with all the extra interest on top. I realise the interest isnt compounded but want to know is it a flat 8% per year from when you took the loan to when you get compensated? In this case it would be 8% x20 years if I understand correctly. Cheers

[Deleted User]

I think you need to concentrate on providing a valid and compelling PPI complaint. Leave the Bank to work out the redress...if your complaint is successful that is.

Nasqueron

Hound2001 wrote: »

Thanks. I was curious whether they just make you an offer or send a breakdown of how they arrived at their offer. I didn't repay early but as I posted, they added the PPI amount to my loan so obviously I got shafted with all the extra interest on top. I realise the interest isnt compounded but want to know is it a flat 8% per year from when you took the loan to when you get compensated? In this case it would be 8% x20 years if I understand correctly. Cheers

A I stated, there is a defined refund process for PPI

https://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html#compensation

They don't make an offer, they refund the premiums + the interest element, yes it's 8% a year.

What I mean is that whatever calculation you come up with, they will still only pay you a defined amount plus as above, they have to agree you were miss-sold and the complaint is valid so working out what you will get before they even agree you were miss-sold is a bit premature