PPI calculation help

factor29

I've just had an offer in relation to my winning PPI complaint, but I need some help to understand if the offer is right if anyone could help? 

I had PPI for a car purchase back in 2006. This was a 36 month agreement which I paid off approximately 18 months later. Payments were £24.65 per month for PPI and included in the monthly loan repayments. 

The offer of just under £1k appears to only be for the 18 months I had the loan open, is this correct or would settling the agreement early have meant I paid the remaining balance for 36 months PPI? 

Thanks

[Deleted User]

Settling early means a sort of pro-rata refund thus you pay less interest on the loan

The refund seems consistent with the FOS policy and what they allow firms to do

• a refund of the total single premium that was added to the consumer’s loan when they took it out;
• a refund of the loan interest charged on that premium up to the point the business calculates the consumer’s loss (or the date the consumer repaid the loan); and
• interest on the extra payments the consumer paid each month - because the loan had included PPI.

 I don't know the sums so this is purely a guess but

24.65 * 18 = £443.70
11 years of 8% simple = £390.46
= £834.16

Add on interest on the extra payments and yeah £1000 or so seems reasonable

factor29

OK, so my settlement would have been less because they would have given me a refund on the remaining PPI? Thats the bit that was confusing me. It's so long ago I dont have the paperwork to know so was assuming incorrectly probably! Thanks for checking though,