How to tot up interest for PPI on paid off credit card

[pinny]

Hello CAG

 

I'd be so grateful if anyone could look at the spreadsheet and advise whether I've worked out the interest correctly?

 

Santander have made me an offer.

 

Now I've got the breakdown,

if I agree with their methodology,

I get to about the same figure.

 

While I'd love to hold out for the compound interest am not sure that I'll get it

and talking to the Ombudsman it can take 2 years for them even to look at whether the redress has been correctly calculated,

quite apart from the fact that they don't seem to support compound interest.

I don't have time/money to go to court at the moment and badly need the funds in my account right now.

 

Are there any other arguments I can use that would be accepted by the bank and supported by the Ombudsman?

 

Thank you so much for any help.

 

Pinny

[citizenB]

It looks like they have indeed worked it out using the FOS format.

 

I will ask one of the PPI guys to have a look for you.

[caro]

Silly question but where is the interest from 2002?

[dx100uk]

you'll need to use this spread

 

This third spreadsheet is a calculator that will work out a fos based PPI award on a Revolving Credit Account such as a credit card. It will also work out the additional 8% interest awarded where the account moves into credit as a result of the removal of the PPI from the account. Be aware that you will need ALL of the account statements for this spreadsheet to give the correct result.

 

FosRunningPPI v102.xls

[pinny]

Dear Dx

 

Thanks very much for this

- am just sitting down to do it now.

 

Going through the statements, not all of them say anywhere what the interest rate is per month or per year.

 

Presumably where it states a monthly rate, I add all the months together for that year to get to the annual rate?

 

How do I work it out where no info is given

- would I for instance take a starting balance of £1661.79, take away the payment of £384 to give an outstanding balance of £1277.79

and then work out that the £19 in interest is a monthly interst rate of 1.49% so making the annual rate 17.84%?

 

Thanks again

Pinny

[pinny]

Also, looking at how Santander (or Giro as they were back then) lay this out, where do I put the starting balance on the spreadsheet please? As it seems to make a difference if I'm not starting from zero?

 

Sorry to bother you with what must seem like perfectly obvious questions. Thanks again

Pinny

[dx100uk]

http://www.stoozing.com/calculator/apr-rate-converter.php

 

I would not worry 'too' much about the exact APR for the exact year.

 

an avg will do for the whole sheet

 

dx

[pinny]

Thanks Dx - so just thinking about the fact that a starting balance will complicate the spreadsheet, is it best to set say October's payment against September's spend? As otherwise I'll be showing a credit balance when I didn't have one?

 

Thank you again! Pinny

[dx100uk]

I fudged mine yes.

 

dx

[pinny]

Does Santander/FOS accept compound interest as payable? For this to work, will I need to know an average interest rate?

 

Thanks Dx

[dx100uk]

on a credit card you are entitled to CI

BUT it must be worked out in line with the FOS guidelines

 

the spready does that for you.

 

use whatever int rate [APR] you can find

it wont matter 'that' much'

 

it will all be checked anyhow

 

dx

[pinny]

Dx

 

Thanks again - have you heard the news about incorrect refunds on Radio 4's Today programme this morning - how long have you been saying this for?!

 

Can I check something else please? There's a summary elsewhere on the site I've been looking at from Sep 2012 which I've pasted in below. What we are all due back apparently is

 

1 -> A refund of the premiums paid

 

2 -> A refund of any contractual interest applied as a result of the premiums.

 

3 -> A lender will be required to reconstruct the account with the PPI and associated interest removed. If the removal of the PPI causes the reconstructed account to show a credit balance for any period then 8% simple interest is awarded on that credit balance for that period.

 

4-> If the account is closed and paid off then you would also get 8% simple interest on the difference between the actual balance paid off and the reconstructed balance running from the date the account was paid right up t the date of the settlement of the claim.

 

Point 4 covers the 8% interest that banks work on with the FOS rules, right? Will the spread also include any refund due under point 2? If so, will that only be if the PPI alone created that situation?

 

Thank you yet again!

 

Pinny

[dx100uk]

yes the sheet does

 

dx

[pinny]

Dx

 

hello again

- I have a few key statements missing,

annoyingly 3 months where I paid it down to zero so I must be owed interest at that point

- I've estimated that it will be in the first of those months.

 

I've tried filling in the spreadsheet by copying and pasting info and also manually one by one

- but there seems to be a problem with the formulas when I get to the no-statement period.

 

I've downloaded the sheet a few times and started over in case I've wiped out the formulas but though I can see them in the cells, the calculations stop.

 

Please could you advise what I'm doing wrong?

 

Also please see attached a pdf of where I'm up to so far. Thanks yet again! Pinny

[dx100uk]

attach the xls directly

 

i'll get the author to pop in if needs be

[pinny]

Dx

 

Thank you again - I don't think excel is one of the formats you can attach? Pinny

[ims21]

Dx

 

Thank you again - I don't think excel is one of the formats you can attach? Pinny

 

 

Yes it is...exactly the same as you did with the PDF.

 

Post it up and I'll take a look at the spreadsheet.

[pinny]

Dx

 

Pls see attached. The months I have statements missing for I've highlighted in yellow.

 

Thanks again Pinny

[ims21]

You need to enter values in the first two columns i.e monthly spend and monthly repayment.

 

As you don't have the data you will need to estimate what happened so that you pick up the balance as being correct when your data restarts.

 

The sheet needs values in those first two columns to allow it to calculate.

[pinny]

Dear IMS 21 thanks very much - that's what I've been doing but it still doesn't seem to work. On line 33 in the attached, I post £0 in the first two cells, and I can see the formula in cells D and then G-K but no results come up. I've checked that the formulas are going down so that they're the same (allowing for the line position) as the one above. It couldn't have anything to do with the fact that I've dragged the formulas down from the line above, could it? Thanks again, Pinny

[ims21]

Use 1p as an entry for both monthly spend and monthly payment.

[pinny]

Genius! It's now working thank you very much indeed! You couldn't help me with one final question could you and then I think I'll be able to finish these calculations? There's no mention of an interest rate anywhere on these statements; could you please confirm that this rough and ready formula is OK: So if the balance on previous statement is £1958.75, payment is £59 that leaves a balance of £1899.75. The interest figure is £29.95 so for that month it's 1.58%, averaged over the year that's 18.92%?

[ims21]

Yes that should be OK. Don't forget, the spreadsheets are a guide only but they do allow you to check any glaring errors a lender might (and do) make.

[pinny]

Yes, and much appreciated! At least it settles the fear that they're pulling a fast one yet again and that can take over your life....