PPI Reclaiming discussion Part II

Kaia_2

Update....
Ok mcolak, thanks for the correct calculations, phew, I had sold myself short of nearly a thousand pounds in my bloomin calculations.

I have spoken to solicitors and because its Friday and the defence had to be in by Monday they were keen to get a settlement sorted.
But Yesterday on the phone they offered me £4853.74 (the amount o my claim form.....
Based on PPI £2021.33
Interest on PPI £1832.49
8% stat int £999.92 Total £4853.74
However, they left out the £108 court cost and any interest accumulated since my workings out were done.
I have since learnt my calculations were underestimated and now I have the correct calculation of :
2. Was a front loaded policy in which case:
PPI £2021.33
PPI Paid Interest to Date £2251.56
8% Stat Interest on PPI Paid to Date £1760.48
Total Reclaim = £6033.37
Plus the court cost of £108= Total £6141.37
So....I have told them that all I want is to be put back in the position I would have been had I NOT been made to take out the PPI, I am not asking for anything more, just fair play.
They have said because its Friday and defence was due in Monday, they cannot get hold of their clients in time now so what tey do they can ask for an extention of 7 days so they can contact their clients to tell them our thoughts.
Does this sound right everyone?

I'm back off up the hospital now.....but will try to catch you all later for an e-pint.....or glass of wine......I missed the party....LOL.
Cheers all :beer: Kaia x

Kaia_2

marshallka wrote: »

what you doing kaia, Are you going to keep the loan, pay it off.
Can they use rule 78

Mcolak says no, if it was front loaded my payments will stay the same.
I thought that there was interest for future payments as well, I dont know much about that part of it, thats why I was checking what would happen.
Ideally I would like to get a better deal loan elsewhere.
i have already paid THOUSANDS and 10 years left to run !!!!!
I wonder what the settlement figure is....will guess that after 6 years of paying £250 a month it will still be not far off what the orginal loan was!
I must check and see.

marshallka

Kaia wrote: »

Mcolak says no, if it was front loaded my payments will stay the same.
I thought that there was interest for future payments as well, I dont know much about that part of it, thats why I was checking what would happen.
Ideally I would like to get a better deal loan elsewhere.
i have already paid THOUSANDS and 10 years left to run !!!!!
I wonder what the settlement figure is....will guess that after 6 years of paying £250 a month it will still be not far off what the orginal loan was!
I must check and see.

Kaia, just be careful about the rule 78 thing. Have a read of this first

Rule 78 - Loans taken out before 31st May 2005
For existing loans taken out before 31st May 2005 rule 78 may still apply, its a good idea to check with your lender to find out how your interest payments are calculated especially if you are considering early repayment of the loan. For loans taken out from 31st May 2005 Rule 78 has been abolished.
If rule 78 is used to calculate the interest on your loan more of the interest payable on the loan is charged at the beginning of the loan repayment period. Loan repayments of equal amounts will be made up of interest and capital. Initially the repayment part paying off the capital is smaller than the part paying off the interest. As the loan repayment term progresses the interest part of the repayment decreases and the part paying off capital increases. The monthly repayment amount remains the same; you continue to pay equal instalments.

You will have to make sure that when the loan is re-scheduled, it starts from that date and remember your loan is classed as REGULATED. (under 25K)

m.colak

Kaia wrote: »

Update....
Ok mcolak, thanks for the correct calculations, phew, I had sold myself short of nearly a thousand pounds in my bloomin calculations.

I have spoken to solicitors and because its Friday and the defence had to be in by Monday they were keen to get a settlement sorted.
But Yesterday on the phone they offered me £4853.74 (the amount o my claim form.....
Based on PPI £2021.33
Interest on PPI £1832.49
8% stat int £999.92 Total £4853.74
However, they left out the £108 court cost and any interest accumulated since my workings out were done.
I have since learnt my calculations were underestimated and now I have the correct calculation of :
2. Was a front loaded policy in which case:
PPI £2021.33
PPI Paid Interest to Date £2251.56
8% Stat Interest on PPI Paid to Date £1760.48
Total Reclaim = £6033.37
Plus the court cost of £108= Total £6141.37
So....I have told them that all I want is to be put back in the position I would have been had I NOT been made to take out the PPI, I am not asking for anything more, just fair play.
They have said because its Friday and defence was due in Monday, they cannot get hold of their clients in time now so what tey do they can ask for an extention of 7 days so they can contact their clients to tell them our thoughts.
Does this sound right everyone?

I'm back off up the hospital now.....but will try to catch you all later for an e-pint.....or glass of wine......I missed the party....LOL.
Cheers all :beer: Kaia x

It's up to you really but once you run the court case then you won't be able to get any more. You can tell them they have until Wednesday before you file for a judgement by default but personnally i wouldn't even give them that long I would tell them firmly they have until Monday 1400. The excuse that they can't get hold of their clients is rubbish and they are just stalling.

m.colak

marshallka wrote: »

Kaia, just be careful about the rule 78 thing. Have a read of this first

Rule 78 - Loans taken out before 31st May 2005
For existing loans taken out before 31st May 2005 rule 78 may still apply, its a good idea to check with your lender to find out how your interest payments are calculated especially if you are considering early repayment of the loan. For loans taken out from 31st May 2005 Rule 78 has been abolished.
If rule 78 is used to calculate the interest on your loan more of the interest payable on the loan is charged at the beginning of the loan repayment period. Loan repayments of equal amounts will be made up of interest and capital. Initially the repayment part paying off the capital is smaller than the part paying off the interest. As the loan repayment term progresses the interest part of the repayment decreases and the part paying off capital increases. The monthly repayment amount remains the same; you continue to pay equal instalments.

You will have to make sure that when the loan is re-scheduled, it starts from that date and remember your loan is classed as REGULATED. (under 25K)

Yes it has been abolished but they were told to stop using it 1997 by the OFT. I believe this is relation to older agreements which were still running and this was formalising to ensure that there was no more discrepencies. Actually reading this it meant if under your previous terms and conditions it mentioned Rule 78 then you should have received new terms and conditions and a revised settlement information.

m.colak

Kaia wrote: »

Mcolak says no, if it was front loaded my payments will stay the same.
I thought that there was interest for future payments as well, I dont know much about that part of it, thats why I was checking what would happen.
Ideally I would like to get a better deal loan elsewhere.
i have already paid THOUSANDS and 10 years left to run !!!!!
I wonder what the settlement figure is....will guess that after 6 years of paying £250 a month it will still be not far off what the orginal loan was!
I must check and see.

If the loan amount that you are paying is variable then the interest is calculated monthly (On the whole amount Loan/PPI and interest determined at the point of taking the loan) and if it was front-loaded then the PPI and Interest would have been paid first of all. It works out the shortest time in which the PPI and Interest could have been paid off is within 20 months which you have already gone past and therefore it can be assumed that you have already paid it. The remaining amounts is made up of the loan and interest.

marshallka

m.colak wrote: »

Yes it has been abolished but they were told to stop using it 1997 by the OFT. I believe this is relation to older agreements which were still running and this was formalising to ensure that there was no more discrepencies. Actually reading this it meant if under your previous terms and conditions it mentioned Rule 78 then you should have received new terms and conditions and a revised settlement information.

I know but Kaia's terms may be (for the unrevised loan) the same as mine being it does not actually mention as such "the rule 78" but it sort of means it in the agreement settlement bit on clause 6 on the back of the agreement about early settlement. It will say that in accordance with the CCA 1974 and this was how settlements were calculated. (little did i know until now). I would be very careful with these companies as they may use it and say it was ok to use as this loan was regulated (under 25K). Then she has another argument on her hands. I have looked up every meaning of the OFT rules for this 78 business and some things i actually read had slightly different meanings.(learning every day). It stated that it should not be used in unregulated loans (ie over 25K) although it can still be argued in loans under 25K for various reasons. Apparently it can still be used for loans taken out prior to 2005. We all know what they can be like. Just looking out for my friends.

The OFT asked lenders to cease using the rule of 78 in relation to unregulated secured loans to non status borrowers. (i class us that used these secured loans from these dodgy lenders non status because non status can also mean not able to get "that" loan from a high street bank.)But on saying that although some loans are regulated and the use is allowed it can still be challenged for other reasons.(Hence my argument)

Kaia_2

m.colak wrote: »

It's up to you really but once you run the court case then you won't be able to get any more. You can tell them they have until Wednesday before you file for a judgement by default but personnally i wouldn't even give them that long I would tell them firmly they have until Monday 1400. The excuse that they can't get hold of their clients is rubbish and they are just stalling.

Right, basically the situation is that they offered the £4853.74 today and would have drafted an appropriate Order for our approval and filing with the Court and then arrange for payment to be made to us immediately.....thats what they said anyway...
The offer was there on the table....so i cant see why they would stall?

I was the one who went back to them and said I had sought advice and believed that my calculations were incorrect and the true figure was £6141.37 (the figure you worked out for me:D thanks) and I said that all i wanted was to be put back into a position as if we had never had PPI....no more , no less.

So in order for them to review my request he said he needed to talk to his clients, he even said it was in their interest to settle as they were going to incurr costs that would exceed my claim, but that he could not do this until Monday as he had tried but with it being gone 5.45 on a friday evening he would not be able to until monday, so said.....with your consent we will apply for a further 7 days under some rule or regulation, he did say but i dont remember...
So i will wait till Monday for an answer, going away Wednesday for a week so will have to sort it out before then anyway.
Do you think I should of just taken the first offer:o have I made a mistake?

Kaia_2

marshallka wrote: »

I know but Kaia's terms may be (for the unrevised loan) the same as mine being it does not actually mention as such "the rule 78" but it sort of means it in the agreement settlement bit on clause 6 on the back of the agreement about early settlement. It will say that in accordance with the CCA 1974 and this was how settlements were calculated. (little did i know until now). I would be very careful with these companies as they may use it and say it was ok to use as this loan was regulated (under 25K). Then she has another argument on her hands. I have looked up every meaning of the OFT rules for this 78 business and some things i actually read had slightly different meanings.(learning every day). It stated that it should not be used in unregulated loans (ie over 25K) although it can still be argued in loans under 25K for various reasons. Apparently it can still be used for loans taken out prior to 2005. We all know what they can be like. Just looking out for my friends.

The OFT asked lenders to cease using the rule of 78 in relation to unregulated secured loans to non status borrowers. (i class us that used these secured loans from these dodgy lenders non status because non status can also mean not able to get "that" loan from a high street bank.)But on saying that although some loans are regulated and the use is allowed it can still be challenged for other reasons.(Hence my argument)

This is why I was checking, I have followed your case closely as we have several issues in common and as you say this early settlement and rule 78 thing can be so complex its hard to understand, thanks Marshalka x

Kaia_2

:j P.S. My Dad is coming home, good news, he is on the mend!:j