I sent of an initial letter to HFC (Household bank) on 9th Jan as we took out a loan with them in '05 and the other half was pressured to take the PPIicon without realising everything we know about it now. We repaid the loan in '06 after taking out a secure loan with 1st plus (groan - we are tackling them too).
Any way today we got a letter through thanking us for our recent contact and after reviewing the completed documentation (we had a copy of the loan agreement) they "cannot safely conclude that your PPI policy was suitable for your general needs a that time. We will therefore be sending you a full refund of your PPI premium, plus the interes that has been charged on the premium. We anticipate it will take 6-8 weeks for your refund to be issued. We apologise for the delay and request your patience during this time."

We are both really pleased to get this, I take it because HFC got fined this is why the response so quick and how long the refund will take is so long?

We are just a bit confused about what we will actually get back as we never paid the full loan, just under a year in fact and I have posted some figures below;

Loan £10,000
monthly payment before ppi = £223.56
monthly added ppi = £63.48

Total loan amount for ppi = £3,166.88
Total charge for credit (interesticon) = £2,165.44
Total Amount of credit = £11,152.02

The settlement figure we repaid was £12,146.55.

Does anyone think that they will repay the payments made plus the pro-rata amount they added onto the loan settlement? Or will it be the full premium as they say in their letter?

I've looked around for other HFC posts on here but there don't seem to be many so hoping some wise poster will help us out????