PPI Reclaiming discussion Part II

Anne.Jade

marshallka wrote: »

I know how they work now Anne.Jade. I know how to work the misselling ones too. They have ripped me off goos style here. I want it all back and will fight all the way now knowing the figures.

Yeah you go for it! They offered me £3,000 but I worked it out that they owe me nearer £8,000 with interest that's why I didn't accept it. Mind you I could have worked it out wrong but it wouldn't be that far off.

maxdp

[FONT=&quot]May be teaching my granny how to such eggs but I copied this from somewhere sometime.

this is how Rule 78 is calculated

This applies to fixed-sum loans taken out before 31 May 2005 and are regulated by the Consumer Credit Act 1974.

Rule of 78 is a way in which some lenders will calculate early repayment costs.

It works out how much interest you should have paid at any time during the repayment period of a loan. Its main feature is that the interest is not spread evenly over the payments during the term of the loan. Under rule of 78 you pay more interest in the beginning of a loan and as each repayment is the same size, the part paying off the capital is smaller in the beginning of the loan increasing over time.


The number 78 is based on the 12 months of a one-year period. When the 12 months are added together (12+11+10+9+8+7+6+5+4+3+2+1) you get 78. This means that if you have a loan to be repaid in one-year, the lender will expects you to pay 12/78ths of the interest in the first month and 11/78ths in the second, continuing like this until the final month.
If the loan is paid off early, the lender may use the rule of 78 to determine how much interest you do not have to pay. In many cases, due to the interest element being larger in the repayments at the beginning of the loan, a large amount of capital can remain to be repaid.


[/FONT]

marshallka

Anne.Jade wrote: »

Yeah you go for it! They offered me £3,000 but I worked it out that they owe me nearer £8,000 with interest that's why I didn't accept it. Mind you I could have worked it out wrong but it wouldn't be that far off.

Here is another one of their working for someone months ago

---

Posted previously under loans but then found this thread-
basically have a dilema in that have been trying to reclaim ppi from first plus they have sent a letter offering enhanced rebate of the insurance policy calculated on a pro rata basis of 78% of the premium (originally was £15183.80) (22 % being held back for provision of claims and admin costs!) - we havent made any claims?!
Offer is enhanced ? rebate of 5,423.35 in addition to the 2,274.83 that will be applied to your loan account on cancellation of the policy.
additional refund is made with no admission of liability by insurers or first plus and is a good will gesture.
They dont make it easy to understand!
Basicall loan started in 6/06 for consolidation of other debts plus consolidation of first plus so initial loan was £62,000. plus the protection 15183.80
total 77183.80
am I to assume they will take this amount off any outstanding amount then monthly payments should decrease -
should i try to ask for full amount as having financial difficulties which is why its tempting to accept offer - what if we dont get full amount can we still accept this offer?
any advice gratefully recieved
thanks

---

Don't ya just love em!!!!

di3004

I will post up the calculations in a min but on the letter they sent to me in June 2008 this is how he said it was worked out, although again not a bad rebate really deducted but for a 25 year loan and paid off 16 months after I don't know what to think if its fair or not really.

Head of operations/compliance states there was a "part rebate"of the Insurance Premium.
settlement date 4 October 2005 (even though it was actually Nov 2005 this was settled) amounting to £1,533.69

Loan and PPI totalled at £23,835.00 which relates to the amount borrowed and not the cost of the loan, interest was not added as an upfront amount but was charged on a "Daily basis" on the balance of the total loan and the amount and debited to the account monthly.

The total cost of the loan would be calculated by multiplying the monthly instalment by the term of the loan and deducting the original amount borrowed.
For example £208.51 x 300 - £23,835.00 = £38,718
...................................................................................................
Will add the other bits in a min, this is what I just copied from on his letter.

marshallka

maxdp wrote: »

[FONT=&quot]May be teaching my granny how to such eggs but I copied this from somewhere sometime. [/FONT]

[FONT=&quot]this is how Rule 78 is calculated [/FONT]

[FONT=&quot]This applies to fixed-sum loans taken out before 31 May 2005 and are regulated by the Consumer Credit Act 1974.[/FONT]

[FONT=&quot]Rule of 78 is a way in which some lenders will calculate early repayment costs. [/FONT]

[FONT=&quot]It works out how much interest you should have paid at any time during the repayment period of a loan. Its main feature is that the interest is not spread evenly over the payments during the term of the loan. Under rule of 78 you pay more interest in the beginning of a loan and as each repayment is the same size, the part paying off the capital is smaller in the beginning of the loan increasing over time.[/FONT]


[FONT=&quot]The number 78 is based on the 12 months of a one-year period. When the 12 months are added together (12+11+10+9+8+7+6+5+4+3+2+1) you get 78. This means that if you have a loan to be repaid in one-year, the lender will expects you to pay 12/78ths of the interest in the first month and 11/78ths in the second, continuing like this until the final month.[/FONT]
[FONT=&quot]If the loan is paid off early, the lender may use the rule of 78 to determine how much interest you do not have to pay. In many cases, due to the interest element being larger in the repayments at the beginning of the loan, a large amount of capital can remain to be repaid. [/FONT]

Calculator here

http://brian-stewart.orpheusweb.co.uk/credit/javascript/equalr78-prr.htm


and here

http://www.hughchou.org/calc/rule78.cgi

marshallka

di3004 wrote: »

I will post up the calculations in a min but on the letter they sent to me in June 2008 this is how he said it was worked out, although again not a bad rebate really deducted but for a 25 year loan and paid off 16 months after I don't know what to think if its fair or not really.

Head of operations/compliance states there was a "part rebate"of the Insurance Premium.
settlement date 4 October 2005 (even though it was actually Nov 2005 this was settled) amounting to £1,533.69

Loan and PPI totalled at £23,835.00 which relates to the amount borrowed and not the cost of the loan, interest was not added as an upfront amount but was charged on a "Daily basis" on the balance of the total loan and the amount and debited to the account monthly.

The total cost of the loan would be calculated by multiplying the monthly instalment by the term of the loan and deducting the original amount borrowed.
For example £208.51 x 300 - £23,835.00 = £38,718
...................................................................................................
Will add the other bits in a min, this is what I just copied from on his letter.

Di, I need the orginal loan amount
The PPI
The date of the loan
The repayments and how many
The rebate they gave you on the PPI at settlement and settlement date and how many reapyments you actually made til you settled..

di3004

marshallka wrote: »

Di, I need the orginal loan amount
The PPI
The date of the loan
The repayments and how many
The rebate they gave you on the PPI at settlement and settlement date and how many reapyments you actually made til you settled..

I'm back and have now found the agreement.;)

Date of loan signed 30th July 2004
Loan £21,000
PPI £2835.00

Total loan £23835.00

Interest rate: 9.52% per annum for the first 12 months

monthly installments: £208.51

Estimated Repayment Period: 300 months APR 9.9APR %
..................................................................................................

So basically the first payment of £208.51 was the month after taking this out, I make that 15 months to October then full settlment paid in Nov 2005 as shown in the amount below:

Total amount payable for settlement on 30 Nov 2005 £23646.04
(this was the amount we paid to settle).

They stated on the letter I added in the above post that £1,533.69 was part rebated from the Insurance Premium.

However I this was not shown on the settlement calculations, only on the letter sent to me as posted above.

arthurp8

A few months ago I tried starting the reclaim process for my PPI on my firstplus loan taken out through freedom finance....however was fobbed off by firstplus saying they were not liable as the loan was taken out through Bespoke finance - Bespoke fobbed me off with a general letter - as such I decided to sit back and wait until more momentum was there - as such does anyone have any advice as to how I should proceed with my complaint and PPI reclaim.

My loan is with firstplus via Freedom finance (though obviously Bespoke now that I know). Anyhow my PPI was missold as the person dealing with my loan actually filled the PPI box in on my forms so it was already ticked - and I tried cancelling this and was told that I would then lose the money that is paid up front.

Any help or advice gratefully received....

di3004

arthurp8 wrote: »

A few months ago I tried starting the reclaim process for my PPI on my firstplus loan taken out through freedom finance....however was fobbed off by firstplus saying they were not liable as the loan was taken out through Bespoke finance - Bespoke fobbed me off with a general letter - as such I decided to sit back and wait until more momentum was there - as such does anyone have any advice as to how I should proceed with my complaint and PPI reclaim.

My loan is with firstplus via Freedom finance (though obviously Bespoke now that I know). Anyhow my PPI was missold as the person dealing with my loan actually filled the PPI box in on my forms so it was already ticked - and I tried cancelling this and was told that I would then lose the money that is paid up front.

Any help or advice gratefully received....

Hi there

There has been a few cases here now regarding this Bespoke business, I am sure Marshallka will post to you when she can on this for you and guide you in the right direction.;)

Good luck !

Di.
x

marshallka

Right Di, found all your details here

Loan 21000
PPI 2835
repayments 208.51 x 300
PPI rebate 1533.69

So 2835 divide by 23835 = 11.89% PPI element

208.51 x 11.89% = 24.79
24.79 x 16 = 396.64
PPI amount is 11.89% of the total loan being
7437 - repayments made 396.64 - the rebate of 1533.69 = £5506.97(don't know if this is correct for definate but i have done this like mine. Then you add the stat interest onto this.

If my working out correct here then you had paid an extra 5506.97 on settlement for a PPI policy that was of no further use to you.