HBOS/Sainsbury’s PPI Single Premium – Help needed please! ***WON***

[loopyluc]

After reading some fantastic posts I have managed to get an offer from HBOS re a single premium PPI. I really could use some help though as I’m not sure if they have offered correctly and the spreadsheets on this web make my head hurt .

 

The original loan was for £7500, interest was £1395.90 (APR 6.6%)and the insurance was a further £1762.50 on top. This loan did not run full term and I refinanced with another £9500 loan in 2007 clearing the original loan. Sainsbury would not add to the loan as they ‘prefer’ not to (I wonder if I have been had there also ). I also refinanced this with £11500 in 2008 again paying off the original loan. I finished any loans with Sainsburys April this year.

 

Sainsburys have offered to put me back in the position I would have been in should the PPI not have been added with no admission of liability. They are however only prepared to look at the first £7500 and will not consider the subsequent refinancing. Should I push for this or should I quit whilst I’m ahead?

 

I have the full SAR for the first loan and the paperwork for the last. I have details of the second from my credit file and HBOS assure me the missing accounts are on their way as required by the SAR. You can clearly see on the SAR where the representative upgraded the PPI from bronze to silver and the terms/principles of single premium PPI were never discussed.

 

HBOS have offered me the following:

Refund of premium paid: £1762.50

Refund of interest paid: £263.53

Interest at 8%:£773.45

 

Can anybody tell me if this is correct? Thanks in advance and for all the posts. I wouldn’t have been able to get this far without it!

[dj1971]

Hi Loopyluc,

 

Welcome to the forum.

 

Sainsburys are trying to pull a fast one on you here as you are entitled to claim back the PPI on all of the loans and very well they know it.

 

Personally I would write back to sainsburys saying you reject their offer of settlement on the grounds that they are offering to refund the PPI on only 1 of the loans. Then ask them to look again at this decision not to refund PPI on all the loans.

 

You could on the other hand accept their offer, subject to the calculations being checked, but make it clear you are accepting this as a part settlement and request they look at the PPI for the other loans.

 

In refinancing a loan you are being hot double whammy. Using the new loan to pay off the old one and I suspect being sold yet another PPI policy each time, then being charged interest at their rate on this as well.

 

Is your decision whether you accept their offer as part settlement or not. But in order to check their calculations we need some further information.

 

1) Date of first payment

2) Amount of monthly payment for PPI

3) Total interest charged on PPI

4) Number of monthly payments

5) Whether there was an early settlement rebate on the PPI upon refinancing.

6) Number of monthly repayments made before refinancing.

 

If you send this information someone will be able to help you with the calculations.

 

Good luck

 

DJ

[loopyluc]

Thanks DJ ,

 

That helps loads. Just to clarify there was only PPI on the first loan. I had learnt my lesson after that. The PPI in full was added to the loan amount as a single premium and paid up front so there is no monthly amount.

 

Looking at the agreement (which I can scan if this would help?) the figures go like this:

 

 

Loan amount: £7500

PPI: £1762.50

Total Interest: £1395.90

 

Interest breaks down further:

Insurance interest: £265.50

Interest: £1130.40

 

48 x £222.05 = £10658.40 Total Payable

 

Looks like I have a 2 months payment holiday as the loan was taken out July 03, and I made the first payment in October 03. I made the last payment in Jan 07 and settled the account (with the second loan) in Feb 07 by paying £1765.43. The only rebate I can see anywhere was for £10.97.

 

My calculations recon I settled 8 months early (8x222.05 = 1776.40, 1776.40-10.97=1765.43) so I made 40 payments and only ever had a rebate of £10.97.

 

 

This is starting to make a little more sense now!

 

 

Can anybody help me with the 8% now please? Is the 8% taken from the loan and insurance interest? Is it annually calculated?

 

 

HBOS have already sent the cheque with nothing for me to sign. I shall send them a letter accepting in part only (whilst their calculations are checked) and asking them to reconsider loans 2 and 3.

 

 

A word of warning to anyone else writing to HBOS, send your letters recorded and write on the letter that you have done so. I have been told my letters have been getting lost but there are copies in my SAR. Also my SAR only has details for the first loan. They are slippery to say the least!

 

 

LoopyLuc x

[dj1971]

Hi Loopyluc,

 

Good that you had PPI on just the first loan.

 

Although the PPI was front loaded, ie added at the start, you will have been paying this back monthly. So a certain amount of your monthly repayment will have been credited against the PPI loan.

 

We can however work out this amount by adding:

 

1) PPI charged £1762.50

2) Insurance Interest £265.50

 

This gives us a total of £2,028 which is the total amount you were charged for the PPI. We divide this by 48 = £42.25

 

So £42.25 of your monthly repayment was going against the PPI loan.

 

So the first part of your reclaim calculation is simple ie £1,762.50 + £265.50 = £2,028.

 

Then to calculate the 8% statutory interest we calculate it from the date of each repayment until the date of settlement, or the date HBOS refunded your money.

 

So £42.25 @ 8% per annum from say 2nd October 03 until date HBOS refunded your money.

 

In doing the same calculation for each repayment I actually get £683 but they are offering you £773.45. So my suggestion would be to accept their offer and bring this matter to a close.

 

As you did not have PPI on the other 2 loans, I do not think there will be anything to claim back on these.

 

With reference to the rebate I suspect this is refund of interest for early settlement. Now as you settled just 8 months early, this could actually be correct. Although I do not know their method of calculation on this and so cannot comment further.

 

Well done on a good result.

 

Do you want 1 of the moderators to add "won" to your post title? It will help others and encourage them to submit a claim, as you have done.

 

DJ

[loopyluc]

Thanks DJ,

 

I shall quit while i'm ahead then! Your advice has been invaluble

 

How do i get 'WON' added to the title then?

 

Luci

[loopyluc]

Please can a moderator mark this WON? Sorry but I have no idea how to go about doing this if this isn’t the best way!

Luci

[landy_alert]

Please can a moderator mark this WON? Sorry but I have no idea how to go about doing this if this isn’t the best way!

Luci

 

Hi Luci:)

 

I have asked the Site Team to mark your thread as 'WON' - congratulations by the way

 

For future reference, if you click on the red warning triangle on the left side below your user name you can report a post to the site team..........

 

Landy x

[cerberusalert]

Title updated.

[landy_alert]

Title updated.

 

Thanks cerberusalert

[loopyluc]

Just a quick update as I have found other peoples experiences invaluable.

 

I accepted the offer from HBOS in part settlement only, whilst the numbers were checked (thanks DJ) and I noted there was no consideration made to the fact that the original loan had been refinanced twice. Although there was no PPI on loans 2 or 3 the previous loan had always been cleared by refinancing.

 

In effect I had to borrow an extra £2K for loans 2 and 3 to cover the deficit left by the mis sold PPI. I have asked HBOS to reconsider but have heard nothing.

 

The interesting bit is however, that FOS are prepared to consider this part of the claim and have taken my details and are sending out a complaint pack. I shall keep you updated.

 

Thanks again for all the support.

 

Luci x

[dj1971]

Hi Loopyluc,

 

Glad to see you are keeping the pressure on HSBC and well done on contacting the FOS.

 

Look forward to hear your updates.

 

DJ