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I have been made an offer on a loan taken out in 1994 which ended in 2003.

 

It looks like a goodwill offer and also looks a bit "light".

 

They dont give me exact dates of ppi payments

looks like it was added at the start of the loan being about £1200.

Their offer is £3300.

 

2 questions:

1) Can I bank their cheque "without prejudice" taking it as a payment on account to mitigate my losses, and argue about the amount later?

They havent mentioned acceptance in their letter, just calling it their "offer".

 

2) I feel that the 8% stat interest should be compounded, not simple.

 

I would be grateful for any help on this.

 

I have downloaded the spreadsheet,

 

taking £1000 as the initial PPI payment from 01/01/1994 gives simple interest of £1,921.92 but if you use standard compound (1+r)^n * £1,000 = (1+0.08(rate)))^23years*£1,000 = £5,871.46 then add on the principal £1k = £6,871.46

 

why is it simple instead of compound?

 

the fair calculation of loss is the amount foregone each year,

which is the interest lost each year and interest on that interest for the following year?

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If you click on the link at without prejudice you will understand that without prejudice has nothing to do with the kind of situation you are referring to.

 

The only thing you can do is before you bank the cheque – to make sure that the lender understands that although you are banking the cheque, you intend to challenge the calculation. You should inform them of this in writing and they should need to agree in writing.

 

Alternatively you could do it on the telephone – but make sure you record the call.

 

However, you should understand that calculations are generally made using simple interest – not compound interest and if yours is a straight loan then you would be able to recover any charges and interest on them – but not a whole lot else.

 

Anyone in the industry who says that is costing them money to repay mis-sold PPI premiums plus interest is lying. They are still quids in enormously and the whole thing is disgusting

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its a front loaded loan so int is already charged and calculated in your monthly PCM

its not compounded

 

use the stating sheet

https://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

enter each monthly payment of PPI on the date it happened

 

you can calculate the PPIPCM by reading.

 

https://www.consumeractiongroup.co.uk/forum/showthread.php?318646-PPI-Single-Premium-Your-questions-answered(1-Viewing)-nbsp

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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