Thread: Question on Compound/Statutory Interest

Hiyah Peeps

Just a quick query on somethng which may not be clear to a number of people on compound and or statutory interest

the details of our claim are as follows

Insurance loan (cash price of insurance) = 3454.86
add: total charge for credit for insurance loan = 907.26
Total Amount you pay for insurance loan = £4362.12

pompeyfaith very kindly also calculated that in addition there is compound interest on top of £1,278.52 or statutory interest of £1,326.98 on top to add to the claim.

So put simply - are the banks obliged to put you back into a position you were before the PPI was added but pay you the additional Statutory Interest and/or Compound/Contractual interest on top ?

by the way we won and a donation is on the way to CAG as soon as we get the dosh, and a good few beers to pompeyfaith for his help

thanks for that - the statutory interest works out more than the compound anyway. scales tipped

perhaps I am mis-understanding something on single premium

loan details

Insurance loan (cash price of insurance) = 3454.86
add: total charge for credit for insurance loan = 907.26
Total Amount you pay for insurance loan = £4362.12

I always thought that total charge for credit was interest added to the insurance part of the loan over the period of the loan, but in fact do they then charge you interest on the total plus insurance aswell ? So in effect canning you twice ? Hence why I am claiming ther total cost of PPI in charges plus statutory or compound ?

Pompey if you take the total of £4362.12 and devide that by the loan term the figure you get is what you pay per mth so check the agreement and if they are the same contractual has been paid.

PF