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  • FIRST POST
    • deaster
    • By deaster 11th Mar 18, 2:37 PM
    • 3Posts
    • 0Thanks
    deaster
    Help with a PPI calculation please.
    • #1
    • 11th Mar 18, 2:37 PM
    Help with a PPI calculation please. 11th Mar 18 at 2:37 PM
    Hi, I have just been offered a settlement by the Co-Op which seems low to me and I just cannot work out how they have arrived at the figure they have given. The details are as follows:
    2500 loan over 24 months
    loan start 06/05/1992 - no missed payments / not paid off early / not claimed on.
    PPI amount 555.49
    Monthly repayments 154.51 x 23 + 1 x 154.30

    Co-Op have offered 1288.14 as follows:
    PPI refund 28.09 x 24 = 674.16
    8% simple on each payment to 10th March 2018 = 767.47
    This totals 1441.63
    Less 153.49 tax due on 8% interest payment gives the grand total 1288.14

    I am confused by the 8% simple calculation and I also think they should be paying 15% on part of this loan as it was pre April 1993?
    Any help greatly appreciated.
Page 1
    • amersall
    • By amersall 11th Mar 18, 7:27 PM
    • 15,259 Posts
    • 18,860 Thanks
    amersall
    • #2
    • 11th Mar 18, 7:27 PM
    • #2
    • 11th Mar 18, 7:27 PM
    Redress is defined, you have the PPI and the 8%, it is correct.

    Don't know regarding the 15% to be honest, I have never heard of this, someone else may post who may be able to help you.

    If you are a non taxpayer or, the 8% does not take you over your tax allowance for 2016/2017, you can claim this payment back from HMRC using form R40.

    • Moneyineptitude
    • By Moneyineptitude 11th Mar 18, 8:53 PM
    • 20,483 Posts
    • 11,351 Thanks
    Moneyineptitude
    • #3
    • 11th Mar 18, 8:53 PM
    • #3
    • 11th Mar 18, 8:53 PM
    I am confused by the 8% simple calculation and I also think they should be paying 15% on part of this loan as it was pre April 1993?
    Originally posted by deaster
    No idea what ruling you are trying to apply here.

    PPI redress is defined as a full refund of the policy plus 8% simple interest; no more, no less.

    There is no year in which this increases or decreases. 1993 has no significance to PPI complaints.

    The redress you detail is correct.

    If you remain unconvinced, ask the bank for a breakdown of the redress offer.
    • Partridge89
    • By Partridge89 11th Mar 18, 8:59 PM
    • 46 Posts
    • 46 Thanks
    Partridge89
    • #4
    • 11th Mar 18, 8:59 PM
    • #4
    • 11th Mar 18, 8:59 PM
    At least one lender (not the one in question here) uses 15% before the date quoted above and 8% after.
    • Moneyineptitude
    • By Moneyineptitude 11th Mar 18, 9:02 PM
    • 20,483 Posts
    • 11,351 Thanks
    Moneyineptitude
    • #5
    • 11th Mar 18, 9:02 PM
    • #5
    • 11th Mar 18, 9:02 PM
    At least one lender (not the one in question here) uses 15% before the date quoted above and 8% after.
    Originally posted by Partridge89
    Which one and why?
    • Nasqueron
    • By Nasqueron 11th Mar 18, 10:10 PM
    • 4,756 Posts
    • 2,834 Thanks
    Nasqueron
    • #6
    • 11th Mar 18, 10:10 PM
    • #6
    • 11th Mar 18, 10:10 PM
    Which one and why?
    Originally posted by Moneyineptitude
    FOS say they will sometimes award 15% for refunds prior to 1/4/1993 but only where the details are not known (see below) which is why OP is probably confused - as the bank know the details they won't refund 15%

    http://www.financial-ombudsman.org.uk/faq/businesses/answers/redress_a4.html
    • Placida
    • By Placida 12th Mar 18, 12:43 PM
    • 191 Posts
    • 143 Thanks
    Placida
    • #7
    • 12th Mar 18, 12:43 PM
    • #7
    • 12th Mar 18, 12:43 PM
    No idea what ruling you are trying to apply here.
    Originally posted by Moneyineptitude
    Possibly The Judgment Debts (Rate of Interest) Order 1993 which came into force on 1st April 1993. This Order reduced from 15 per cent. to 8 per cent. per annum the rate of interest on judgment debts under section 17 of the Judgments Act 1838.

    PPI redress is defined as a full refund of the policy plus 8% simple interest; no more, no less.
    Originally posted by Moneyineptitude
    http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi-our-approach.html

    how does the ombudsman approach redress where a PPI policy has been mis-sold?
    Redress for a mis-sold single-premium PPI policy attached to a loan.


    We will tell the business to add interest to each overpayment to compensate the consumer for the loss of use of their money. Our usual rate is 8% per year simple from 1 April 1993 - and at 15% simple per year before that.


    There is no year in which this increases or decreases. 1993 has no significance to PPI complaints.
    Originally posted by Moneyineptitude
    as above
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