PPI Claim - How to calculate

[fmc001]

Hi folks

First of all can I start by saying what a fantastic site this is.

I was quite sceptical about trying to reclaim PPI as I did not think that I would have much of a chance in succeeding. However after reading a few posts from various members I realise that my personal circumstances are very similar to other members who have launched and succeeded with their claims.

At this moment in time I have submitted to RBS and Abbey National a Subject Access Request. I also have other financial providers that I need to contact and will do so in the near future.

However as I await the outcome of the above I was hoping that someone would be able to provide some advice and guidance on what I am actually claiming for.

 

The breakdown of the loan was as follows:

Loan 4000.00

Interest 1498.40

Total Amount (A) 5498.40

A is payable by 48 monthly instalments of £114.55 (APR 17.9%)

 

Credit Protection Premium 582.69

Interest 218.43

Total Amount (B) 801.12

B is payable by 48 monthly instalments of £16.69 (APR 17.9%)[/font]

 

Total monthly payment = A + B = £131.24

 

In the above scenario is the correct amount to claim for equal to:

Amount B (Total cost of PPI including interest)* Compound Interest (8%)* Date Loan Issued (July 1997)

 

Any help advice or guidance that I am on the right track would be very much appreciated.

[landy_alert]

Hi fmc001:)

 

Welcome to Cag!

 

You have come to the right place and should receive plenty of helpful advice which will ensure that you too can make a successful claim!

 

Thank you for setting out the figures for your loan agreement - that will be most helpful to those assisting you. Can I ask whether the loan is still running and how many payments you have made?

 

It would be beneficial to you to have a read of the 'stickies' at the top of this PPI forum which will give you many useful pointers and guidance.

 

With loan PPI added as a single premium, you are looking to reclaim the PPI premiums paid (which already include interest at the contracual rate) plus 8% simple interest on each premium paid from date you paid it to the date of your claim. Any unused premiums (if the loan is still running) would be refunded to the outstanding loan balance, thereby reducing it.

 

Hope this helps!

 

Landy x

[fmc001]

Hi Landy

 

The loan is not running any longer and the last repayment was made on the loan in January 2001.

 

I have 6 loans in total.

 

5 have been with the RBS and date from 1992 to 1997 and the one highlighted in this thread is with Abbey National that ran from 1997 till 2001.

 

I also have some credit cards (in fact many over the past few years that I need to do a bit further research on) that I would like to pursue PPI claims against.

 

Unfortunately I can only remember the Credit Card company however I do not have and of the credit card details.

 

Does anyone know if I send an SAR request without account details does the CC company still need to comply???

 

For the time being I am going to have a go at calculating reclaim figures for the Abbey loan.

 

When complete I will copy them to here and I would be very grateful if someone could cast an eye over them to make sure that I am on the right track.

 

Cheers

Edited March 24, 2010 by fmc001

[fmc001]

Hi

 

While I am waiting for my SAR's to be processed I am currently trying to work out a figure for what I should be claiming.

 

I have attached an extract from my loan agreement stating the loan amount, interest, PPI amount and APR.

 

The loan was taken out in July1997 and the first payment made August 97 and there after for 48 months.

 

Can I claim Contractual Interest @ 17.9% and then 8% on top on the PPI Premium and the interest payments made.

 

By my calculations this would be in excess of £8000.

 

Can anyone confirm if this is correct??

 

Many thanks

24-03-2010 18-52-17 3.bmp

[landy_alert]

Hi fmc:)

 

The PPI repayments you made would have already contained interest at the contractual rate that you were being charged, ie total cost of PPI including contractual interest - 48 x £16.69 = £801.12, so you only need to add 8% to each PPI instalment.

 

If you paid the full 48 months you can reclaim 48 x £16.69 plus 8% simple interest on each PPI payment made from the date each payment was made until the date of your claim, so for example -

 

If your first PPI payment of £16.69 was made on 1st August 1997 this would have incurred £16.89 interest at 8% calculated to today's date. You need to calculate this for each monthly PPI instalment and then enter them on a spreadsheet. Let us know how you get on.

 

Landy x

[fmc001]

Landy

 

Thanks very much for your advice.

 

I think I get a better idea now on how to calculate single premium PPI.

As the £16.69 monthly payment for PPI already includes the contractual interest you simply add 8% statutory interest to each of the 48 payments. Then add together £16.69 + 8% interest for each of the 48 payments to get your final figure.

 

I just received through my CCA from Abbey National so I am in the middle of putting together my first letter to claim my refund.

 

I have another question though. I have tried Google andthe forum but to no avail. Does anyone know if Abbey National were fined for miselling of PPI as I would like to include this point in my letter if appropriate.

 

Many thanks

 

FMC

[dx100uk]

TBH:, i would not go PPI using bashing technique just yet.

 

simply ask for your reclaim as you believe it was mis-sold for XX reason.

 

i'd also inc a copy of your spreadsheet.

 

On anything older than 6yrs, you will get a reply stating that its outside of whatever ruling & that they are not required to keep docs after that time, they cannot find any paperwork in their filing system so they will not be refunding you anyhow.

 

as they each do we will deal with it

 

dx

[fmc001]

Thanks DX

 

I have put my first letter of complaint in the post and I will keep you updated on my progress.

 

Cheers

[fmc001]

Just a quick update on this thread.

 

I submiited a request to claim back my PPI to Abbey National for a loan that was taken out in 1997 and finished in 2001.

My SAR was sent on 14th March 2010 and I received a copy of the original loan agreement dated July 1997.

I sent my first letter requesting a refund on 09 April 2010. This was delivered on the 14th April 2010. After waiting a few weeks I contacted the bank who denied ever receiving the letter.

I sent my second letter on 19th June. I received confirmation in the post of receipt from the bank.

Today I received in the post confirmation that my complaint has been upheld and that they will refund my premiums (£801.12) and 8% Interest (£705.11) making a total of £1506.23

I have got some forms to sign and return before the refund is released.

 

I would just like to say a big thank you to everyone that has helped and a donation will be made to CAG when the cheque is received.

[landy_alert]

Hi fmc:)

 

Congratulations - well worth the effort I'd say and thanks for the update

 

Landy x

[scanner]

Landy

 

Thanks very much for your advice.

 

I think I get a better idea now on how to calculate single premium PPI.

As the £16.69 monthly payment for PPI already includes the contractual interest you simply add 8% statutory interest to each of the 48 payments. Then add together £16.69 + 8% interest for each of the 48 payments to get your final figure.

 

I just received through my CCA from Abbey National so I am in the middle of putting together my first letter to claim my refund.

 

I have another question though. I have tried Google andthe forum but to no avail. Does anyone know if Abbey National were fined for miselling of PPI as I would like to include this point in my letter if appropriate.

 

Many thanks

 

FMC

hi

After trawling this site im still none the wiser when it comes to interest compound or other. I just can't get my head around the calculation explainations.

Case 1

PPI cost £403.98 with interest over a 48Month period =£744.62

monthly payment of £15.51

loan started 27 May 2005

 

Now I managed to calculate your figures to get to the amount of £801.12 but cannot figure out how you calculated the interest to get £705.11

.

I have tried the compound interest calculators but they just give me a headache

any assistance will be helpfull even an example in numbers and laymen terms will help a lot

Thanks

[donbracho]

i think u dont need to figure out the compound interest its already been done by the company as they inlcude it in their monthly charge fo PPI u just need to add the 8%

[dx100uk]

do you know what per month you paid for PPI?

 

if you do

 

you simply add 8% compounded monthly [the rest period]

start date = date of THAT ppi payment [next will be one month later]

end date = date of your claim [remains the same for every payment]

 

simples

 

enter that into a table in MSword or an excel spreadsheet format.

 

http://www.egalegal.com/compoundWindow.html

 

 

total up the total amounts due column = thats your claim total.

 

dx

[fmc001]

Scanner

 

I have attached the spreadsheet that I used to calculate my refund for a previos loan (from 1997). It was accurate to about 15 pence when compared to the figure offered by the bank. I have quickly completed it with the figures you supplied. All the formulas will be available in the spreadsheet. Download this, print it off, and send it with your claim.

 

FMC

Scanner Loan.xls

[scanner]

Thanks for the spreadsheet it is easier for me to understand it when looking at fomulae, I do however have one more question.

does the claim for the 8% stop at the last payment or does it carry on until the claim is submitted ie in your spreadsheet the total amounted to £934.78, is this the final amount I claim for, I know I may sound a bit dim here but I need to get this right first time without messing up on the claim

Thanks

[dx100uk]

no it runs to todays date

so in 1 days time

it will be a bit more

 

dx

[dx100uk]

though just looking

that spreadsheet has a set date in cell N3 of 22/07/2010

 

if you change that to =TODAY()

 

then it will auto update.

 

dx

[scanner]

Many Thanks. dx100uk

I do however have an active account open with citifinanceial so to claim what has been paid plus interest, i would adjust the date in column B to start of loan finishing of at latest payment, change the monthly amount in Column D and everything should fall in Place, they would then have to adjust my monthly payment to exclude the insurance payment and less interest

Once again Thanks

[dx100uk]

sounds correct

just remember this bull about new agreements to going around at the moment

 

they cannot make you sign a new agreement they must restructure the old

 

dx

[scanner]

Thank You , sending letters off today

[scanner]

sorry for the hassle

I just got off the phone with Metlife (insurance holders) and between themselves and Citi they both confirm that the policy is paid in full when the loan is taken out.

I found the Agreement which indicates the premium of £1677.14 plus interest of £847.33 amounting to £2524.57.

 

I think this changes the whole calculation ,would I just fill in the top row in your spreadsheet, and do I use the original figure of £1667.14 (less loan interest) or the amount £2524.57 (includes loan interest at 17.44%) keeping in mind I have only paid for 49 of the 60 payments toward the loan

Your help is greatly appreciated

[dx100uk]

Smokescreen!!!

 

Trying to confuse you

 

You can claimback 8% on top of every payment you have actually made only

 

The rest just comes off the bal

 

Dx