PPI Calculation

[mot22]

Firstly I'd like to thank everyone and especially ims21.

 

I've read through the first link on your signature.

However I'm not understanding the combination of examples I need to apply and am hoping for your help.

 

I had 2 loans.

Both with PPI.

Loan 1 was re-financed half way though (at 24 months) by Loan 2.

At the time of re-financing (when Loan 2 began) I have now been told I had a rebate of Loan 1's PPI.

Using the Loan Progression Spreedsheet the rebate I was given is about half the figure that appears on the calculator at the 24th month. (when Loan 2 started).

Loan 2 has not been fully re-paid.

 

Using just the PPI Premium and Loan Total and monthly repayment amounts but not including any PPI rebate amounts, I have worked out the:

PPI % of Loan 1.

PPI % of Loan 2.

PPI % of Loan 2 that relates to PPI of Loan 1.

 

I have entered all the above in the Statutory Interest Spreadsheet.

 

My problem is with the PPI rebate for Loan 1, when Loan 2 started (at 24 th month of Loan1).

 

What do I do with that PPI rebate in the calculations ?

1. Do I do as above with a), b) and c), and that is all I need to do ?

 

2. Do I do as above with a), b) and c) and then add anything to do with the PPI rebate figure,

and if so which rebate figure, the one they gave me, the one at 24 months on the Loan Progression Spreadsheet or the difference between the two ?

 

And what/where do I include it ?

 

I hope I've not complicated things in trying to explain where I'm at with this.

 

Again sincere thanks to ims21 (and all) without who's info and spreadsheets I wouldn't have got even this far.

Many thx

[ims21]

Hi

 

Rebates for PPI don't relate to the progression of the loan. Normally they would be a percentage dictated by the bank or the policy so don't worry that the rebate you got doesn't match to the loan progression spreadsheet.

 

For this reason, when doing a reclaim, there is usually overpaid PPI that is rolled into the next loan, as you have discovered.

 

So let's look at this step by step. Apologies if you have done some of this already but lets make sure its all OK.

 

Loan 1 first.....take the total amount of the loan (Cash Loan + PPI Loan). Work out the PPI percentage of that total given by ppi loan/total loan x 100. Lets say the result is 20%.

 

So now you list in the spreadsheet 20% of every repayment you made on the loan. So if your total monthly repayment was, say, £150, you would list 20% of each one i.e. £30 giving the date of the payment, a description and the amount. You should end up with 24 entries.

 

Is that how you've done it?

 

ims

[mot22]

Thank you for the speedy reply.

No apologies necessary.

Appreciate the step by step approach for this old and withering brain.

 

Yes I have done as you describe for Loan 1.

[ims21]

Excellent. So before we can deal with loan 2 we need to deal with the rebate given on loan 1.

 

In the loan analysis spreadsheet you enter the Total loan amount, the number of payments and the amount of each payment. Read down to row 24 and see what the balance was. Take the PPI percentage that you have worked out (in my example above it was 20%) and apply it to that balance figure on payment 24.

 

This will give you the balance of the PPI loan at that point. Let us assume that you work out the balance for PPI at that point is £1,000. You receive a rebate of £400. Thus at that settlement point, you have actually overpaid ppi to the tune of £600 and this is the figure that is carried into loan 2.

 

The calculation for loan 2 is a two stage process.

 

First you need to calculate the percentage of loan 2 ppi as normal (exactly as you did with loan 1) and list those ppi payments for each repayment actually made.

 

Second, you take the total of loan 2 (cash loan + ppi loan) and work out the percentage of the ppi overpayment relevant to that total loan. so using the example of £600 you would use 600/total loan x 100. Let's say it comes to 5%. So in addition to the "normal" loan 2 ppi payments, another 5% of each repayment is paying off the remainder of the ppi on loan 1. You list those 5% amounts in the spreadsheet as well.

 

This method ensures that you are claiming 8% interest on ppi payments actually made and it takes account of the rebate you received.

 

Remember, the spreadsheet is really just an interest calculator and when you have finished the exercise above, you will have the amounts you have actually paid and the 8% interest thereon.

 

What you should expect to get back are the PPI premiums in full and the bank's interest on them PLUS the 8% interest per the spreadsheet and then Less the rebate you have already had.

 

Payments you have actually made should come back to you. The as yet unpaid part of the PPI on loan 2 will be dealt with by restructuring the account for the remainder of the time it has left to run. (Assuming the account is still live).

 

Hope this helps.

 

Shout of you are unsure of anything.

 

Regards

 

ims

[mot22]

My sincere thanks.

I wouldn't have worked out the PPI rebate without your help.

 

If I may also ask, have you posted a Contractual Interest spread sheet or if not, are you able to ?

 

Again my thanks

[ims21]

Your welcome

 

Compound Interest Sheet attached....is this for charges reclaim or something else?

 

ims

 

 

CISheet.xls

[mot22]

Apologies ims21.

To make sure I understand.. where you say..

"In the loan analysis spreadsheet you enter the Total loan amount, the number of payments and the amount of each payment."

 

"Total Loan Amount " is the Loan Amount + PPI Premium ?

"amount of each payment" is the payment I made each month for Loan 1 ?

Edited December 13, 2011 by mot22

[mot22]

Thank you.

It's for the same PPI claim but the Contractual Interest part of the claim I am being offered seems very low.

Is your attached spread sheet still applicable ?

[ims21]

Apologies ims21.

To make sure I understand.. where you say..

"In the loan analysis spreadsheet you enter the Total loan amount, the number of payments and the amount of each payment."

 

"Total Loan Amount " is the Loan Amount + PPI Premium ? Yes

"amount of each payment" is the payment I made each month for Loan 1 ?,Yes, the total monthly repayment. This will give you the balance on the loan as a whole at,say, month 24 and then you can use the percentage to find the ppi balance at that time

 

ims

[ims21]

Thank you.

It's for the same PPI claim but the Contractual Interest part of the claim I am being offered seems very low.

Is your attached spread sheet still applicable ?

 

The contractual interest you get back is included in the monthly repayment you make to the bank which we have calculated above. If your monthly ppi repayment is 20% of the total monthly payment and comes to £30, that £30 includes the contractual interest.

 

They will only repay you contractual interest you have actually paid. Anything relevant to the unpaid part, i.e. the repayments yet to become due are dealt with on the restructuring of the loan if it is still live.

 

ims

[mot22]

The contractual interest you get back is included in the monthly repayment you make to the bank which we have calculated above. If your monthly ppi repayment is 20% of the total monthly payment and comes to £30, that £30 includes the contractual interest.

 

They will only repay you contractual interest you have actually paid. Anything relevant to the unpaid part, i.e. the repayments yet to become due are dealt with on the restructuring of the loan if it is still live.

 

ims

 

Thanks.

Yes what you say makes sense.

They have presented figures that have separated the CI and SI, so I just want to know those amounts for myself...if that makes sense..

 

Thank for your help and patience...you're a kind soul...

Kind regards and wishing you well...

[ims21]

Hi

 

Responding to your PM re the spreadsheets being protected.

 

The spreadsheets are locked in certain areas to prevent alteration to formulae.

 

Download the spreadies and save them to your PC. Make sure you work from the ones you have saved to the PC and not just from the links in the above posts. In the CIsheet, cells D5 to D10 are editable as are columns A, B and C in the white list section underneath the coloured bits.

 

In the StatInt sheet, cells D5 to D9 are editable as are columns A, B and C in the white list section underneath the coloured bits.

 

Have a go at doing it like that and you should be OK

 

ims

[mot22]

Hi

 

Responding to your PM re the spreadsheets being protected.

 

The spreadsheets are locked in certain areas to prevent alteration to formulae.

 

Download the spreadies and save them to your PC. Make sure you work from the ones you have saved to the PC and not just from the links in the above posts. In the CIsheet, cells D5 to D10 are editable as are columns A, B and C in the white list section underneath the coloured bits.

 

In the StatInt sheet, cells D5 to D9 are editable as are columns A, B and C in the white list section underneath the coloured bits.

 

Have a go at doing it like that and you should be OK

 

ims

Thank you for the instructions.

I've done as you describe.

The Loan Progression Spreadsheets works (I can enter the figures I need),

but not the Statutory or Contractual Spreadsheets. (can't enter anything in the cells you mention).

 

Thanks

[ims21]

Hi

 

OK give me a mo and I'll post up unprotected ones....

 

ims

[ims21]

Hi

 

Here you go...

 

Remember, only enter data in columns A, B and C.....do not change anything in the other columns in the white list section

 

ims

 

 

 

StatIntSheet1Unprotected.xls

CISheetUnprotected.xls

[mot22]

Hi

 

Here you go...

 

Remember, only enter data in columns A, B and C.....do not change anything in the other columns in the white list section

 

ims

 

 

 

[ATTACH]32159[/ATTACH]

[ATTACH]32160[/ATTACH]

 

many thx..working now..