Egg Loan PPI - Advice please

[Sare Heid]

hi,

 

took out a personal loan back in 2004, this included ppi which due to being self employed at the time, i would consider it was mis-sold.

 

monthly payments started as planned, never missed a payment and managed to settle early when things were going reasonably well, approx 19mths into a 42 mth duration.

 

would i be better to submit initial letter to egg now or wait until i can calculate the amount i want to claim?

 

also, looking at figures now, it looks like the settlement figure used at the time may have been too high.

 

can someone point me in right direction for a suitable letter and calc spreadsheet?

 

cheers

 

SH

[Sare Heid]

i would be grateful if someone could have a look at my calcs and let me know if i'm in the right park!

 

original loan :£15000

ppi : £2649.90

apr: 6.9%

42 mths @ 472.83 (1st payment 17/01/05)

using spreadsheet, the amount owed comes out as follows;

cost of ppi = 2649.90

compound interest @ 6.9% = 1336.20

8% on mthly ppi interest payments = 472.91................total claim = £4451.01

 

cheers

 

SH

[Sare Heid]

Bumping -

 

would appreciate any comments on whether this looks ok or not.

[dj1971]

Sareheid,

 

The calculations you have done are on the total loan amount, not the PPI amount.

 

I have done a calculation for you on the spreadsheet attached. You should subtract from the total claim any refund you received on the PPI for early settlement.

 

Good luck

 

DJ

[Sare Heid]

DJ

 

thanks for the quick response, can you attach the spreadsheet so i can have a look at it.

 

cheers

 

SH

[dj1971]

Oops! sorry Sare Heid

[Sare Heid]

Thanks dj,

 

i must have used the wrong ppi calculator (single premium) as it worked out the figures in a different way.

 

the £71.20 figure includes the monthly repayment of the ppi premium and the interest on that monthly payment, is that correct?

 

the very last payment i made was the early settlement figure, should the ppi premium elements of this be included in the spreadsheet calsc also?

 

cant see how you've arrived at the figure for the 8% on the balance (2649.90 + 340.42 + 555.42), feelin a bit thick at the minute, would appreciate some pointers.

 

apologies if my queries seem a bit basic but i want to present a solid case and dont get fobbed off, if you can point me in the right direction of the correct spreadsheet that you have used that should help me greatly.

 

many thanks for your assistance so far.

 

SH

[dj1971]

Sare Heid,

 

I do not use a template spreadsheet, but instead do the calculations myself.

 

You are correct, the £71.20pm is the PPI repayment including compound interest. But in line with the FOS guidelines, I have also calculated 8% simple interest from the date of each monthly repayment, until the date they settle your claim. Now as we cannot know this date at the moment, I have used 01/12/10 for the purpose of these calculations.

 

Then we calculate 8% simple interest on the balance. Which is done by adding the £2,649.90 which is the total monthly repayments you made and then add the 8% simple interest as calculated above £340.52. We then calculate the interest on this amount from the date after your final payment until the 01/12/10 = £555.42

 

Personally I find the calculator spreadsheets on this website a little over complicated, so I tend to do the calculations myself.

 

If you don't agree with my figures, then ask one of the other caggers to look over them before you submit.

 

Do not feel stupid, these things are set up by the banks to make it as difficult as possible for us to work out and therefore lessen the chances of us making a reclaim against them.

 

Remember they are very much in the business of making as much money as possible from people like you and me and have absolutely no interest in what may be best for us.

 

The agents who sell these policies to us, often get a massive commission for doing so and therefore it is not in their interest to explain things properly to us.

 

Is a very good idea to question and re-question until you know exactly how the calculations have been made and feel comfortable with the totals. That way you will be able to explain to the bank, or FOS if it comes to that, how you came to those figures.

 

So ask as many questions as you like until you feel comfortable with it all.

 

Good luck

 

DJ