Citi Financial

[roxy40]

Well, took out a loan with CTI as they were in 2003. They made us take out PPI which we didn't want so I contacted them this year to say that it was missold. They did not get back to me so took it to FOS and they have just written to us to say that CITI are willing to send us a goodwill offer. However, the FOS did say that they have not looked yet to see if this policy was missold! CITI sent me a letter offering a max refund of £8037, which sounds good but want to check with people on here who know what I should do. CITI say it is a max refund of upto that amount but they want to see the paperwork first! So, is there a chance that they will offer me less? The policy itself was £6189 and it was paid off when we finished the loan in 2004 when we remortgaged. There is small print which says that they PPI premium must be paid in full when the loan is finished early, which it was.

Should I take CITI's offer even though it may be less than the max they have stated. Also, according to FOS guidlelines, they should be adding on interest of 8% for each year so surely I should get the policy premium back plus the extra 8% interest on the premium which would be for 12years. I am really confused and don't know what to do so if anyone could help I would really appreciate it.

 

Thanks x

[ims21]

Have you got the loan agreement and a record of the payments you made against the loan?

[roxy40]

Have got the loan agreement but no record of payments but when we finished the loan due to remortgaging there was still some left over as CITI bunged on loads of charges so we had to take out a smaller loan with them which is now finished.

[ims21]

Can you post up the agreement MINUS ALL PERSONAL INFORMATION

 

Use this method

 

Dx100 – Instructions on uploading pdfs

 

scan the required letters/agreements/sheets

as a picture file

remove all pers info inc barcodes etc using paint

but leave all figures and dates.

go to one of the many free online pdf converter websites

convert the image to pdf format.

or ir you have PDF as an installed printer drive use that

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

NB:you can set where it goes in the post by hitting insert inline.

the hit reply button

[roxy40]

Haven't got a scanner so can't do that sorry.

[ims21]

Camera or Mobile phone to get the photo and then as above to convert to PDF.

 

If not please type up all the figures from the agreement and the date of the agreement

[roxy40]

Date of the agreement was 30/4/2003

 

Total amount of finance was £36758.07 (this included the insurance premium) was over 240 months and the instalments were £435.20

APR was 16.4% (Rate of interest was 1.10% per month)

 

The Insurance Premium was £5469.60 with a family cover of £720.00 and only ran for a maximum term of 60 months.

 

Hope that is the correct information you wanted if not shout. Thanks for looking at this x

[ims21]

Ok

 

Normally the first repayment is one month after the loan agreement is dated so let's assume that the first repayment was 30th May.

 

You will need these two spreadsheets

 

StatIntSheet v101.xls

LoanAnalysis.xls

 

The first one is the one that you can use to work out what you should expect back.

 

The total loan was £36758.07 and the PPI premium was £5469.60 making the PPI 14.88% of the total. That means that 14.88% of every repayment you made was for PPI.

 

The monthly repayment was £435.20 and 14.88% of that is £64.76.

 

Take the first spreadsheet and list a payment for each month starting with 30/5/03. Stop listing payments when you get to the date the loan was settled by the remortgage.

 

Take hold of the second spreadsheet and in the three boxes at the top enter the amount of the loan, the monthly repayment and the term. The sheet will calculate the monthly figures for the loan.

 

Read down the left hand column to the one that shows the number of payments you have made and you will see the balance in the right hand column.

 

For example of you paid 10 payments, the balance showing after the 10th payment is £36425.23.

 

Whatever that balance is that you read, 14.88% of it is PPI that you paid off when the loan was settled.

 

Enter that 14.88% amount into the your other spreadsheet as the final entry. The date would be the date the loan was settled.

 

In the main spreadsheet, the "claim to" date should be set to today's date.

 

The spreadsheet will then give you a figure in the top right hand box for what you should broadly expect back.

 

It comprises the premium paid plus the bank's interest they charged you on the ppi part of the loan plus 8% interest on the payments made.

Edited July 7, 2012 by ims21

[roxy40]

Thank you so much will do that, really appreciate you taking the time to help x

[ims21]

No probs.

 

If you get stuck just shout here

[roxy40]

Right by doing that CITI are about £2000 short so I guess I need to contact FOS and say that I am not happy with their supposed good will offer and want them to FOS to persue the missold PPI issue!

[ims21]

You said that you hadn't had an actual offer yet?

 

If that is the case then I would hold on until we make sure our figures are right.

 

Also can you post up the spreadsheet please. You can post spreadsheet files using the "go advanced" button.

 

MAKE SURE YOU REMOVE ANY PERSONAL IDENTIFIERS FROM THE SHEET FIRST THOUGH

 

ims

[roxy40]

Very true but their goodwill offer states a maxmium refund of £8027. Its just that they have been an awful company to deal with in the past and I just don't want them to stitch me up again! Have posted the spreadsheets.

Copy of LoanAnalysis.xls

Copy of StatIntSheet v101-2.xls

[ims21]

CAn you juts confirm that you didn't get any rebate of PPI when the loan was settled?

 

What I would do is await the offer so you can see how their offer is made up and that will enable you to check where any differences might lie.

[roxy40]

No we didn't recieve any refund at all from them, this is CITI we are talking about!!! If CITI come back with an offer less than the max they said would we still be able to go to FOS as they have said that if they do not hear from us then they will assume that we have accepted CITI's offer and it has taken us a long time to get this far with the FOS dealing with CITI!

[ims21]

You can always challenge an offer if you think it is incorrect

[alibobsy]

Sounds very unfair they are asking you to accept an offer "upto" an amount. I would contact the FOS and say you won't accept an offer unless it is a definate amount and you see the calculations.

We are in a simular position with citi, had the fos letter to say an offer will be forthcoming from citi, but not yet had anything from citi. The letter had the "14 days and we will assume you are happy with this" bit in it. I intend to contact the fos to get them to extend this deadline as we have had nothing from citi yet plus I don't think they should close the case until the customer actually has the dosh in their account.

 

Ali x

[roxy40]

Thanks aliboby you have summed up how I feel, how can they expect me to accept an offer when it is not a concrete offer? I think I will take it back to FOS, at the end of the day I just don't trust CITI!