Thread: Rebate Calculations

Hi all I need help with calculating some rebate figures - I am awaiting a letter with the figures that are going to be rebated to me but I want to make sure the figures are correct hence the post.

A company has agreed to rebate PPI at a monthly cost of £48.33 per month (this includes the interest rate charged)

This rebate is from March 2008 and should rebate 23 months worth - basically from this date until the loan ends. As this already includes the interest charged will it be as simple as just a £48.33 x 23 calculation?

If so that totals £1111.59.

There is also a slight issue that whilst I took this matter through litigation I disputed the account (from Feb 09) as I didn't believe I owed them the balance they said I did.

I notified them of this and they even put a note on my account in March saying that collection should not happen on the account - I have a copy of this.

However despite the you must not charge interest etc they have.

When i disputed the account the balance was £1941.22 having never missed a payment to them if I have calculated the rebate above correctly that would leave an outstanding balance of £829.63

However they are currently saying the outstanding balance is now £2740 due to added interest - this would leave a balance of £1628.41 - double what should actually be outstanding.

Can anyone shed some light on my (rather simplistic) calculation and let me know if it really is that easy.

Thanks

Is this a Loan?
Its very strange to see that the balance has increased!

yes it was a loan - it has increased as i put the account into dispute for 7 months whilst in litigation with them as i disputed the balace.

They have continued to add interest at the rate of £100ish per month

Hi Andie

I have a similar situation with a couple of ltsb loans that are still current but that have been in dispute for some time. We have also been charged interest during the period of non-payment.

Pompeyfaith and I came to the conclusion that I should in theory be able to get the PPI element of the interest charged during the dispute refunded also - although as these loans are just two of six currently being investigated by the fos, I don't know whhat the outcome will be yet.

Are you able to establish how much of the £100 ish monthly interest you have been charged actually relates to the PPI?

Regards,

Landy x

Thanks Landy - to be honest I have absolutely no idea I can show that in the months prior to the dispute the interest charged was decreasing by about £4 each month the last payment made in Feb 09. The interest that month was £73.15.

I can see from the PPI totals that the actual PPI amount was £980.61 and the interest was £759.22. so dividing the £759.22 by 36 months would be £21.09 per month.

I quite frankly though refuse to pay the amount of interest whilst in dispute. They acknowledge receipt of the letter putting the account into dispute and even put a note on my account 8 days after receiveing it that reads Customer has commenced legal proceedings against the companies. Please discontinue collections activity whilst legal proceedings are ongoing.

If they didn't agree to my dispute letter you would have thought they would have replied!?!

But of course that would be too much to ask.

Originally Posted by andie_303

I quite frankly though refuse to pay the amount of interest whilst in dispute.

I quite agree with you Andie - if ltsb come back to me and say that the balance owing on our two loans still includes that interest, they can go and whistle for it

I think I found out what our monthly interest on the PPI was by using the Excel spreadsheet's (complex PPI one) first page where you enter the loan details and on the right hand side if I remember rightly, it shows you what the PPI interest was - although your way seems much easier!!!

Regards,

Landy x

thats my point - doesn't it seem TOO easy lol

I know i can't claim any extra interest like the 8% etc as this is a settlement deal outside of litigation so maybe it really is that easy.

No harm is asking for the 8% anyway they can only say no and they may say yes - I got the 8% without litigation the fos tells them to pay it

No unfortuantely there really is no hope in asking basically this is the outcome of litigation it was a deal done on reccommendation from the judge but there is no legal case that they actually have to honour it.

Hi all

Well finally 4 months later my letter arrives offering my refund, in the meantime the company have defaulted me and just flat out ignored me!

Anyway whilst their refund offer is about £200 short of what was initially offered I will take it to get rid of the default.

My arguement I am hoping to use is

1) the default amount was incorrect and they knew this at the time of doing it as they had agreed to refund some of the PPI and other insurances

2) the default was not formatted correctly i.e. they did not give a date that the matter had to be rectified by just the standard 14 days

so I have drafted a letter in response to their offer - I'm trying not to sound to bitchy about it all after all I want them to take back their default and the interest they have been charging whilst the account has been in dispute so playing nice (as I can be)

Can anyone offer any critique?

I write to you referring your letter dated 14th January received on 29th January 2010 in which you offer a refund of £963.11 which you say is 50% of the total premiums paid on PPI, Personal Accident and Life care insurances.

Whilst this was not what was agreed with Mr XXXXXXX, he agreed to back date my cancellation request to when my complaint was initially brought to your attention (February 2008) which would have been a 23 month rebate at £48.33 per month = £1111.59, in the interest of a quick resolution I will accept the offer you have proposed and a refund on £963.11.

I am disappointed that this matter has dragged on for over 4 months since the agreement to resolve this was come to with Mr XXXXXX. Whilst waiting for your company to contact me regarding this matter, despite a number of letters and phone calls from myself, you have issued a default on this account. Obviously as this default was for an amount that you knew to be incorrect I expect this default to be rescinded and my credit report amended to reflect this within 14 days.

My account has been in dispute with your organisation since March 2009 which you were notified of. At the time the account was disputed the outstanding balance was £1941.22, subtracting the refund you have offered leaves an outstanding balance of £978.11.
Therefore I will commit to repaying this balance over the following 10 months on the 1st of every month. The first payment will therefore be on 1st March 2010 for £97.81.

I trust this to be acceptable.