Barclays Personal Loan PPI Claim

[Master Chief]

Hi,

 

This post is on behalf of a family member, who has been mis-sold PPI on a Barclays personal loan.

 

The story goes that he took out the PPI as he was led to believe that it would help his application, i.e. might not get the loan if he didn't accept it; also he is and was at the time self-employed.

 

Some time into the loan he suffered a bad broken leg, which had complications and meant that he was unable to work for quite some time. He claimed on his PPI and was duly paid for (a maximum) of two months, before they stopped the payments on the basis that his self-employment made him ineligable to claim. He doesn't believe that any premiums or interest were refunded.

 

It gets a little bit more complicated, because a couple of years after the original loan was taken out he borrowed some more, so a new loan was taken out and the old one paid off. I'm not sure if the new loan had any PPI, but he thinks he still has the paperwork available (which I will post up as soon as poss).

 

I've attached the original loan agreement, which refers to terms overleaf, although there is nothing on the reverse.

 

Could I just have some advice on whether he can claim and some pointers on how?

 

Thanks

 

MC

RS Agreement 02 Edited.pdf

[ims21]

Hi MC

 

Me again

 

Have a read of No1 in my siganture.....and make sure you look at the bit about rollover loans. It will give you a lot of information to get you started.

 

Regards

 

ims

[Master Chief]

Thanks again ims,

 

I'll have a good read then no doubt come back with a load more questions.

 

MC

[ims21]

[Master Chief]

Maths overload!

 

OK, so we really have to get the details of the second loan and whether there was PPI on that too. Surely the bank wouldn't have sold a second PPI policy, that would be mad!

 

As Arnie says 'I'll be back'

 

Thanks again ims

 

 

MC

[ims21]

Maths overload!

 

OK, so we really have to get the details of the second loan and whether there was PPI on that too. Surely the bank wouldn't have sold a second PPI policy, that would be mad!

 

As Arnie says 'I'll be back'

 

Thanks again ims

 

 

MC

 

Yeah...good innit?

 

This is one of the ways that our "respected" banks managed to fleece us. Sell you a useless policy on loan 1, roll it into loan 2 and possible sell you a useless policy on loan 2 as well.

 

In any event, even of they did not sell you a loan 2 policy, there would have been a rollover from loan 1 unless they rebated the loan 1 ppi fully.....which in my experience is highly unlikely.

 

Yes, get that loan 2 agreement.

 

Regards

 

ims

[Master Chief]

Beggers belief really.

 

Just out of interest (excuse the pun) what rate do we apply to the spreadsheets to include restitution? Same as we discussed over on my other thread?

 

MC

[ims21]

Beggers belief really.

 

Just out of interest (excuse the pun) what rate do we apply to the spreadsheets to include restitution? Same as we discussed over on my other thread?

 

MC

 

Hi

 

You'll have to decide first whether you are going to go the court route or fos route. fos would award premiums plus the bank's interest plus 8% statutory.

 

For a court action you can go for a higher rate in restitution but you wouldn't claim the 8% as well.

 

As we know, fos do all the work but can take time.....court is quicker but you do a lot of work.

 

You could approach them initially for the amount fos would award since if they ay up straight away, you'll have a nice amount back with virtually no work. If they decline then you can pass to foss to get what you want or you can take the court route and go for a higher rate at that time.

 

There are different spreadsheets to use for loans as opposed to credit cards.

 

Regards

 

ims

[Master Chief]

Thanks for the quick responses ims,

 

Obviously it is up to the victim to decide, I shall explain both routes as best I can. Let's say he decides to go direct for what the FOS would award, bank rate + 8%, when is the 8% applied to the claim? Sorry, just want to get things straight so he can make an informed decision.

 

MC

 

PS. Yes, I noted that there were links to spreadsheets via your signature point 1 thread.

[ims21]

Hi

 

The 8% is charged on each of the ppi payments made (including the bank's interest) and runs from the date of the payment to the date of settlement. The claim to this interest is submitted as part of the initial claim.

 

ims

[Master Chief]

Hi

 

The 8% is charged on each of the ppi payments made (including the bank's interest) and runs from the date of the payment to the date of settlement. The claim to this interest is submitted as part of the initial claim.

 

ims

 

OK, I see the statutory interest spreadsheet, but which one do you use for the bank rate calculations? Little bit confuddled!

 

Thanks,

 

MC

[ims21]

OK, I see the statutory interest spreadsheet, but which one do you use for the bank rate calculations? Little bit confuddled!

 

Thanks,

 

MC

 

Hi

 

What you do is work out from the agreement what percentage the PPI was of the total loan. Let's suppose it is 10%. Now, since the repayment include part capital and part interest, if you take 10% of that repayment then that is the amount that is going towards the ppi and the bank's interest on that ppi. So that bank's interest is taken care of.

 

You enter that 10% of each monthly repayment into the 8% spreadie and the sheet calculates the 8%.

 

Simples

 

ims

[Master Chief]

Ahhhhhhhhhhhhhhhhhhhhhhh, I see, it all becomes clear!

 

I did read your sig point 1, really I did.

 

Thank you once again for un-confuddling me.

 

MC

[ims21]

You're welcome

[Master Chief]

So just as an excercise to see if I understand fully, if I take the agreement above as an example, I should calculate as follows:

 

Loan Principle = £8,500.00 + PPI Principle £1,710.06 = £10,210.06

 

£1,710.06 / £10,210.06 (result x 100) = 16.75% (rounded up to nearest decimal)

 

so the PPI portion of the monthly repayment is: 16.75% of £219.57, which is £36.78 (rounded up) BTW I cheated here because I couldn't for the life of me remember how to work it out, could you refresh my very bad memory on this formula please ims.

 

Anyhow, so £36.78 is the charge amount to use in the spready, I believe?

 

 

Thanks,

 

MC

[ims21]

On the nose MC

 

Which formula do you want me to refresh you on?......don't follow you

 

ims

[Master Chief]

On the nose MC

 

Which formula do you want me to refresh you on?......don't follow you

 

ims

 

 

I know I should know it and I did, but have since forgotten: How to calculate the the PPI amount i.e 16.75% of £219.57 = £36.78 (I used an online calculator )

 

Cheers,

 

MC

[ims21]

I know I should know it and I did, but have since forgotten: How to calculate the the PPI amount i.e 16.75% of £219.57 = £36.78 (I used an online calculator )

 

Cheers,

 

MC

 

219.57 x 16.75 / 100

 

ims

[Master Chief]

219.57 x 16.75 / 100

 

ims

 

Simples! Thank you

 

MC

[Master Chief]

Hi ims,

 

Right, I have some further details now, but I will recap what I have so far because I want to check my sums.

 

Loan 1 - March 2002, £8,500 over 60 months.

 

Loan Principle = £8,500

PPI Principle = £1,710.06

 

PPI Percentage = 16.75%

 

Monthly Repayments = £219.57

PPI Monthly Amount = £36.78 (16.75% of £219.57)

 

In Feb 2005 loan 2 was taken out for the amount of £10,000, over 60 months. No PPI this time.

 

So I calculated, using the loan analysis sheet, that 34 payment were made on the original loan leaving a balance of £5,084.97, which was rolled over to the new loan.

 

Of that balance, 16.75% relates to the PPI balance = £851.73

 

£851.73 as a percentage of £10,000 = 8.52%

 

The repayments were £210.57, so 8.52% of this figure is £17.94, which represents the amount per month for rolled over PPI.

 

Q1. Am I calculating this correctly?

 

The other question that I have relates to the spread sheets, if I may explain:

 

At this stage, it has not been decided which route that he wants to pursue (FOS 8%SI or Court 24.9%). So I wanted to produce two sheets showing what the claim amounts would be for each route.

 

For the FOS I used StatIntSheet.xls which amounts to around £3,500 (approx)

 

For the Court route, I used CISheetU.xls at 24.9%, which comes out at approx' £10,500

 

However, as a test to check the figures between the two sheets, if I change the CISheet.xls to 8% the figures don't match. The claim amount comes out at around £3,800 as opposed to £3,500.

 

So either I have cocked up the CISheetU.xls sheet when cutting and pasting the data columns or the two sheets calculate interest slightly differently!

 

Q2. Could you please enlighten me as to where I have gone wrong, if i have. Am I using the wrong spreadsheet for the CI?

 

EDIT: Sorry I forgot to ask this originally:

 

Q3. Should it be decided that this goes the court route, which track (or court) would it take. i.e Small Claims or County?

As the claim for charges is around £2,400, but the total with interest (£8,200 approx) in restitution, would be in the region of £10,500. ?????????

 

Thanks again in advance.

 

MC

Edited October 12, 2011 by Master Chief
Forgot a question.

[xboxer]

Hi Master Chief,

I believe that the 8% stat interest is simple interest whereas the CI sheet is compound interest. So putting the 8% into the CI sheet would be giving you compounded interest instead of simple hence the higher figure.

[xboxer]

Also with the claim again I think so long as the claim without interest is below £5000 then small claims is where you go. You would be asking the judge to consider interest in restitution instead of simple.

If I'm wrong then someone will hopefully correct me.

[Master Chief]

Also with the claim again I think so long as the claim without interest is below £5000 then small claims is where you go. You would be asking the judge to consider interest in restitution instead of simple.

If I'm wrong then someone will hopefully correct me.

 

 

Thanks xboxer, that all makes sense. Will have to check that I haven't buggered up the sheet another way, hopefully not by having to retype all the data, aaaaarrrrggggh!

 

BTW: Your username, do I take it that you are a fellow gamer or does it have pugilistic connotations?

 

Thanks MC

[xboxer]

BTW: Your username, do I take it that you are a fellow gamer or does it have pugilistic connotations?

 

Thanks MC

 

It does mean I'm a fellow gamer lol

[ims21]

Hi MC

 

See my answers in red

 

I'm out till about 9pm tonight but will be back on-line then

 

Regards

 

ims

 

Hi ims,

 

Right, I have some further details now, but I will recap what I have so far because I want to check my sums.

 

Loan 1 - March 2002, £8,500 over 60 months.

 

Loan Principle = £8,500

PPI Principle = £1,710.06

 

PPI Percentage = 16.75%

 

Monthly Repayments = £219.57

PPI Monthly Amount = £36.78 (16.75% of £219.57)

 

In Feb 2005 loan 2 was taken out for the amount of £10,000, over 60 months. No PPI this time.

 

So I calculated, using the loan analysis sheet, that 34 payment were made on the original loan leaving a balance of £5,084.97, which was rolled over to the new loan.

 

Of that balance, 16.75% relates to the PPI balance = £851.73

 

£851.73 as a percentage of £10,000 = 8.52%

 

The repayments were £210.57, so 8.52% of this figure is £17.94, which represents the amount per month for rolled over PPI.

 

Q1. Am I calculating this correctly?

 

All of the above....Spot On.

The other question that I have relates to the spread sheets, if I may explain:

 

At this stage, it has not been decided which route that he wants to pursue (FOS 8%SI or Court 24.9%). So I wanted to produce two sheets showing what the claim amounts would be for each route.

 

For the FOS I used StatIntSheet.xls which amounts to around £3,500 (approx)

 

For the Court route, I used CISheetU.xls at 24.9%, which comes out at approx' £10,500

 

However, as a test to check the figures between the two sheets, if I change the CISheet.xls to 8% the figures don't match. The claim amount comes out at around £3,800 as opposed to £3,500.

 

So either I have cocked up the CISheetU.xls sheet when cutting and pasting the data columns or the two sheets calculate interest slightly differently!

 

The statutory interest sheet uses simple interest....the CI sheet uses compound interest so the calcs will always be different as you are not comparing apples with apples

 

Q2. Could you please enlighten me as to where I have gone wrong, if i have. Am I using the wrong spreadsheet for the CI?

 

EDIT: Sorry I forgot to ask this originally:

 

Q3. Should it be decided that this goes the court route, which track (or court) would it take. i.e Small Claims or County?

As the claim for charges is around £2,400, but the total with interest (£8,200 approx) in restitution, would be in the region of £10,500. ?????????

 

For that amount you need to be prepared for it to be handled outside small claims and this then opens up the question of costs should the case be lost.

 

Thanks again in advance.

 

MC