Ombudsman calculations for PPI compensation vs compensation via the courts

[pinny]

Hello - can I ask for some advice please?

 

 

I have found an almost complete set of statements from Sep 1998 to May 2002.

It covers an Alliance & Leicester credit card now taken over by Santander.

 

 

I have to say that Santander have previously been good within limits - paid out when statements missing and very quickly.

Of course, we should never have been in this position to start with but they do seem keen to be seen to be doing the right thing, unlike many others.

 

 

My questions are these:

 

1. Given that the start date is so long ago, if I went legal, the compound interest is likely to make the award much larger than using the simple interest method.

Can you please point me towards the spreadsheet that would enable me to work out the likely award please?

 

2. Also, how long does court action take, typically?

 

What I might do (as they are likely to make me an offer within the next 2 weeks)

is to suggest a compromise settlement to avoid court action but need to know what the likely sum is to start that discussion I think.

 

Thanks very much for your help

[maroondevo52]

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011&p=4273920#post4273920

[pinny]

Dear maroondevo 52 Thanks for this - in column I of the CI sheet, how do I calculate the charge please? Is it interest, plus PPI, plus spending, plus charges (annual, late payment or over credit limit) - so the same figure as in column C of the REDRESS CALCULATION UNDER FOS RULES - RUNNING CREDIT ACCOUNTS

 

Thanks again!

[maroondevo52]

Hi pinny,

 

Sorry I'm not too sure myself, I've asked another Mod to have a look and advise.

[pinny]

Thanks again! I think it's likely to be PPI only because otherwise with compound int all charges would tot up to nearly half a mil! I don't think that's likely, sadly!

[maroondevo52]

If it's half a mil, we could do with a small donation

[pinny]

Don't worry, Id be making a large one in that case!

[dx100uk]

you simply take each and every PPI figure from the statements

and enter each one individually into the CISHEET

 

 

then workout the avg APR you were charged

 

 

enter that into cell D 15

 

 

then enter the claim to date as the date the card closed or int stopped.

 

 

then comeback here

[pinny]

But in the meantime, I've made a donation. Really appreciate all your help regardless of how much I get - the feeling of righting a wrong is goooood

[pinny]

Thanks dx

 

 

I've got 3 years statements to hand (rest at office so will get them tomorrow)

and the av rate from 1999 to 2001 is 23.39%.

 

 

To calculate monthly interest,

 

 

I've taken the starting balance, removed the credit, then divided the interest by the result, multiplied by 100. Is that right?

 

 

Spreadsheet attached.

[pinny]

dx hello again.

 

 

I've got the missing statements from the office and

 

 

when I average out the interest it rises to a whopping 31.44% pa!

 

 

What I've noticed going through the statements is that in months where I've almost paid off the balance and there's just a few pence interest,

that interest is very high as a % of the o/s balance and this is driving the overall average up. is this normal?

 

 

Please see revised spreadsheet uploaded and thanks again. Pinny

[dx100uk]

don't forget you can only run the claim to date till when they stopped interest

certainly not until today!

[pinny]

Thanks dx that would have been embarrassing! So, with Ombudsman awards you can claim up to the day they pay but not with ones that go through the court?

[dx100uk]

you misunderstand

 

 

whichever way you go

you can only charge interest at the OC's rate whilst they charged it.

 

 

from then, you take that total [from the CISHEET]

and input it for the day after in the statint sheet as a whole figure.

 

 

StatIntSheet v101.xls

 

 

you are entitled to simple int from the day theirs stopped till the day they settle

[pinny]

Thanks dx - is OC old card?

 

 

I've followed your instructions and attached both spreadsheets.

 

 

Would yoiu mind confirming please that these look right and the payment calculated on the sheet with just one date is what I should be looking for?

 

 

Really grateful for your help.

 

 

Pinny

[dx100uk]

you got it right well done.

 

 

now fill out the FOS CQ

 

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

 

 

and do a covering letter like attached

 

 

then the 3 go off to A+L or whomever satans bank sorry

[pinny]

Thanks dx! It really is a minefield and it's so good to be able to check out assumptions with experts. I will keep you posted. Onward and upward!

[mightymouse_69]

I would just say that people really should avoid using the letter templates.

[dx100uk]

I would just like to say there aren't any letter templates

 

 

usual invaluable input from you MM - not!

 

 

dx

[mightymouse_69]

I would just like to say there aren't any letter templates

 

 

usual invaluable input from you MM - not!

 

 

dx

 

I was referring to the letters attached in one of your posts above.

 

My input was to avoid using these - which is valuable.

[dx100uk]

in which the post said....and do a covering letter like attached

 

 

which are not templates .

[mightymouse_69]

in which the post said....and do a covering letter like attached

 

 

which are not templates .

 

Well so long as they are not copied word for word, all is well.

 

That's all I was pointing out.