Help working out PPI redress

[bizzisguy]

Hi All, long time lurker, 2nd time poster...

 

I am hoping that one of you will be able to help me with a query I have.

 

I have a claim with a company for PPI on a loan that was repaid, they have sent me through a redress offer, but I am not sure if it is correct.

 

The PPI loan amount was £6000, 12 payments were made from October 31 2006 @ £59.41/month

 

Notional redemption cost of PPI when it was paid off was £5794.64

 

Can someone help me work out what the redress should be.

 

I tried filling in the statintsheet and it comes out near (but under) the pre-tax redress offered - if I put in the amount as PPI paid + notional redemption cost as the 'amount of charge' and number of days elapsed since 31/10/2006 - but I don't know if the redress should include the original £6000 PPI payment (which it currently doesn't).

 

Thanks

[bizzisguy]

Just to confirm, there are no underlying issues such as:

 

Default Notices being issued. - no

 

debt collection Agency involvement. - no

 

Credit Reference Agency issues - no

 

Harrassment already coming your way - no

 

The account was never behind in payment, so no charges, etc on it

 

Bizzisguy

Edited December 6, 2012 by bizzisguy

[ims21]

Hi

 

Have a read of No.1 in my signature...all the information you need is in there as well as the spreadsheets.

 

If you get stuck then just shout here.

[bizzisguy]

Hi

 

Have a read of No.1 in my signature...all the information you need is in there as well as the spreadsheets.

 

If you get stuck then just shout here.

 

Thanks IMS, sorry to be thick.

 

I settled the loan and PPI (paid back something like £57k on a £56k loan), so, according to your guide, I am entitled to the full £6k PPI premium + interest?

 

Bizzisguy

[bizzisguy]

Thanks IMS, sorry to be thick.

 

I settled the loan and PPI (paid back something like £57k on a £56k loan), so, according to your guide, I am entitled to the full £6k PPI premium + interest?

 

Bizzisguy

 

Found the settlement details from my solicitor when I re-mortgaged

 

The original loan was £50,000

PPI loan was £6000

 

Monthly repayment was £596/month (including the PPI), 12 payments made (£7152)

 

Settlement figure was £55,502.99

 

This to me says that the full £6000 PPI cost was paid in the settlement / monthly payments

 

Does this mean I should also be asking for this £6000 to be paid back as well?

 

BG

[ims21]

OK cash loan £50k and PPI loan £6k = £56k

 

PPI loan is 10.71% of the loan.

 

So for each monthly repayment you made, 10.71% of it was for ppi. 10.71% of £596 is £63.83 so in the spreadsheet (see No.1 in my signature), list 12 payments of £63.83.

 

Settlement figure of £55,502.99 and 10.71% of it is PPI £5,944.37. Deduct from this figure any rebate you received on the PPI at the settlement. Enter the resultant figure as the last itme in the list in the spreadsheet.

 

"Claim to" date should be set to today.

[bizzisguy]

Thanks Ims

 

The sheet they have sent through with calculations actually has a section where they deduct PPI insurance from the settlement (so, they offer me a settlement and then say, that the PPI would have cost x amount, deduct that, then come up with the final figure), it's bad enough that they still claim that I wanted PPI, but they have forgotten I paid the initial £6k and now charging another £544 for an 'equivalent monthly paid policy'

 

I want my initial £6k back on top of the settlement.... I was mis-sold PPI!

 

BG.

[ims21]

It is not up to them to suggest that you would have bought PPI elsewhere and you need to challenge them on this point.

 

What were your original reasons for the mis-sale?

 

The calculations will be as per my post #6 which gets everything back that you would be entitled to i.e. the £6k premium, the interest you paid on it and the 8%.

[bizzisguy]

Hi Ims

 

They originally contacted me to say that I may have been mis-sold PPI on the loan and would I like them to investigate it, to be honest, I didn't even know I had PPI on it, I usually never take PPI out as the job I have is very safe, has been for years (virtually a job for life), plus, I always refused to take it out on loans as I felt it added to much to the monthly payments, so, the fact that I did have it on this loan meant either I was not aware of it (unlikely) or I was told that I had to have it.

 

I shall be writing to them to dispute that I would have bought PPI and to point out that they have neglected to refund the original £6k PPI, the payments for the PPI for a year and the 8% interest per year on the whole lot.

 

I'm grateful for your help and advice, I will keep this thread updated as to how I get on (and no doubt will need advice)

 

Thanks

 

BG

[ims21]

Ok so if you were in secure employment with good sickness benefits then you would not have needed the PPI and that you wouldn't under any circumstances have purchased any other PPI.

 

Tell them that it is not up to them to make an assumption that you would have done so and get them to justify their assumption.

 

If you have completed the spreadsheet as I have advised then the figure given by the sheet is what you should get back subject to the adjustment for any rebate you may have received at the point of settlement of the loan.

[bizzisguy]

Thanks IMS

 

I have sent them a letter today, asking them to explain their calculations, supplying them with my calculations and disputing the PPI altogether.

 

With the settlement offered, it would work out that they are actually charging a shade over £3500 for 12 months of PPI protection (that wasn't wanted in the first place), their figures don't make any sense at all, I think they are trying to get out of this cheaply...

 

I look forward to their reply.

 

BG

[bizzisguy]

Hi

 

Just an update to this.

 

I wrote to them, asking them to explain their redress calculation sheet as I just could not make head nor tail of it, they have responded back to me and it appears their calculations are correct.

 

Endeavour claim that when I settled the loan, the PPI was cancelled and a rebate applied to the account (to reduce the settlement figure on the loan).

 

I have decided to accept their redress offer as it was money I was not expecting.

 

Thanks for your help and advice IMS.

 

BG