Barclaycard - PPI Redress offered but is the Interest Correct?

[SteveBD]

Hi

 

I have this morning received an offer from Barclaycard for a small PPI claim, could anyone help with the calculation sum, which I do not understand.

 

the offer is as follows

 

A.. Refund of payments for PPI 209.81

B.. Refund of Interest Charged on PPI 203.17

C..8% SIMPLE Interest per Annum 2.75

 

D.. TOTAL Refund Payable 415.73

 

The Simple Interest 8% seems an odd amount, but I dont know how its worked out.

 

Thanks for any help

[ims21]

Hi

 

The only way you can check it is of you have all of the statements so that you can reconstruct the account under fos/FSA guidelines. There is a spreadsheet to do it but you do need all of the statements. Do you have them?

 

Also, is the account still live?

 

ims

[SteveBD]

Hii ims 21

 

Thanks for your reply. NO I don't have ALL the required statements, but going by the statements I do have the payments of 209.81 is about right, I estimated £232.00.

 

The account is still live, as of today's date, acceptance will closed the account. I was confused as to the low £2.75 simple interest per annum part.

[ims21]

OK

 

The reason that you would need all of the statements to check it is due to the way the regulatory award is worked out for a credit card.

 

Basically you get back all of the premiums. You also get back the contractual compound interest charged as a result of those premiums. The lender is required to reconstruct the account as though the PPI had never featured and where that reconstruction puts the account into credit for any period then 8% simple interest is awarded on that credit balance for that period. With a credit card, a period is usually one month.

 

So if the reconstruction didn't result in the account going into credit at all, then no 8% interest would be applied. If it only went into credit by a small amount then the 8% would be small as well.

 

Hope this helps

 

ims

[SteveBD]

Hi Ims21

 

Thanks for your help. and for explaining how the simple interest is calculated. I'm happy now to accept the offer. your help was invaluable

 

Cheers and thanks to all

 

SteveBD

[ims21]

You're welcome

 

Enjoy your £400 odd quid and congratulations on your win

 

ims

[SteveBD]

Thanks.. its good to get some money back.. but of course a large part will be going into the Barclaycard account, Once its gone through I will be making a donation to the site,, and be using the Barclaycard to pay it.. (if they don't close the account)