MBNA PPI Credit Card Refund - interest calculations

elw1980

Evening,

I have today heard back from MBNA that they are upholding my complaint - so delighted.

However, having shown my friend the letter she seemed to think the 8% interest looked a little low and showed me the calculations from a couple of PPI refunds she had received.

The calculations from MBNA are:

Total amount of PPI Premiums charged since sale date: £666.65
Total amount of fees refunded: £25.00
Total amount of associated interest: £942.38
Applicable 8% gross interest: £30.41
Less UK withholding tax: £6.08

The card was taken out on 3 December 2004 and was closed in around May 2011 (although am still paying this off monthly). Average balance on the card was £1,500.

I am delighted to receive any payment so by no means being ungrateful at all but just wanted to ask if anyone else thought this 8% interest seems to have been miscalculated?

Many thanks in advance

societys_child

8% (simple interest) is correct.

elw1980

That’s brilliant Society’s Child - thank you so much for confirming this for me.