Ppi refund calculations

[sparky_si]

Hi there could any1 help me out with whether the ppi offer looks about right? Here goes loan taken out in dec 2006 over 5 years finished paying it off 5 months early*

 

premium £3240.70

Contactual interest £1628.46

Total amount pyable £4868.16

Rebate £50.66

Basic compensation £4818.50

Interest £486.75

Total refund £5305.25

 

The fos states that that i should get 8% simple on each monthly amount a year from the date each payment was made to the date of redress.

Also calculating the amount I would of paid to settle the loan without ppi ans subtracting that from the amount from what was actually needed to settle the loan and paying the difference and adding interest on the difference at 8% a year from when the loan was settled to the date of redress.

 

I just dont want to be fobbed off by carcraft thats all.

 

thanks in advance

Edited March 11, 2014 by sparky_si
missed some figures

[ims21]

Hi

 

Have a read of No1 in my signature below.

 

It has all the information you need to work out whether the offer is correct.

 

There are spreadsheets at the end to help you as well.

[sparky_si]

Thanks ill have a go at it now

[sparky_si]

i have entered all details and its totally different to the offer made by carcraft the interest coming up on the spreadsheet is

 

AWARD CALCULATION Monthly Payment of PPI £4,818.55 8% Simple Interest £1,905.83 Total £6,724.38

So what do u guys make of this?

[ims21]

Can you post up the figures from the agreement please and the date of the first repayment.

[sparky_si]

No problem

 

The figures are

 

amount of credit (goods) £12295.00 Total amount payable (goods) £19873.25

amount of credit (ppi/warranties £5035.70 Total amount payable (ppi/warranty) £7566.15

Total amount of credit £17330.70 Total amount payable £27439.40

 

 

The ppi element accounts to £3240.70 not including contractual interest

 

Apr 19.28% rate of interest 18.8% per annum

Admin fee £200

Interest charge £8708.70

Total charge for credit £8908.70

 

Agreement 60 months paid by 1st installment of £558.99 on the 02/01/2007 followed by 58 monthly payments of £433.99 and final installment of £508.99

 

I paid the loan of 5 months early and recieved a rebate of £50.66

 

I think i have covered all the numbers there

 

Thanks

[ims21]

OK give me 10 minutes

[sparky_si]

Thanks i appreciate any help u can give me

[ims21]

Ok, the main part of the redress seems ok to me.

 

You were paying £81 and a few pence per month for the PPI part of the finance.

 

You should get 8% simple on each of those payments running from the date of the payment up to the date of settlement.

 

On that basis their interest calculation for the 8% seems way off.

 

I would be asking them to provide you with details as to how they have calculated the 8%.

 

The figures you have quoted from your own calculations are far nearer the mark.

 

They need to explain themselves to you.

[sparky_si]

Thats great just out of interest how did u get to the figure of £81 pounds per month?

 

Thanks for ur help so far

[ims21]

PPI and Warranties = £5,035.70

PPI Part = £3240.70

PPI Part = 64.35% of the total

 

Total Amount Payable for PPI and Warranties (inc interest) = £7566.15

64.35% of £7566.15 = £4869.15

 

Divide that amount by 60 and you get £81.15

[sparky_si]

Right ive been trying to work that out for days lol. What i dont understand is that i would of paid this amount £4869.16 if the loan went to term but as a i got a rebate of £50.66 which means i have paid £4818.50 over 55 months, so is this not divided by 55 months not 60 which would make my monthly ppi payments £87.61

[ims21]

No you always go on what you actually paid which was £81 odd per month.

 

You stop listing the amount is in the spreadsheet at the date on which the last actual monthly payment was made.

 

You then work out what the effective overpayment of PPI was at the time of settlement and use that as the last entry in the sheet.

 

You can work that out using the attached spreadsheet

 

LoanAnalysis.xls

 

Enter the relevant figures at the top i.e. Amount of Loan = £3240.70, Term = 60 and Monthly Repayment = £81.15.

 

Scroll down to payment number 55 (if you paid it off 5 months early you would have paid 55 payments) and you will see the balance for the PPI is £388.73. That is the full amount of PPI which should have come back to you. You actually got £50 odd rebate.

 

Deduct the actual rebate amount from that balance of £388.73 and that will give you the effective overpayment when you settled the loan.

 

Enter that overpayment amount as the last entry in your main spreadsheet. The date of that transaction is the date on which you paid off the account.

[sparky_si]

You are a star i get it now Thank you very much for all your help i really appreciate it and when i get my redress ill certainly be making a donation for you guys to continue the good work.

[ims21]

 

You're welcome.

[caro]

What was the outcome for this sparky?