Midland Bank 1990 PPI

[Derfel]

Hi,

 

My father had PPI with Midland Bank in 1990. They've made him an offer, which is all repayments on the premium, plus simple interest, and totals about £400.

 

The issue is that all repayments came out of his Midland Bank overdraft. So they also incurred him overdraft interest, a portion of the monthly overdraft turnover fee (0.75% on any debit in the overdraft), and a portion of the 1.25% annual overdraft arrangement fee.

 

He came out of his overdraft in 2005, so assuming that the PPI was the last part of the overdraft paid off (a fair assumption since without it he'd have come out of his overdraft sooner), we totted up that PPI has put him out of pocket around £4000. I.e., that's what they've made from him.

 

I think the calculation is reasonable, the question is what are his chances of being able to claim it back? The bank have only said that they won't consider such incidental issues unless directed by the Ombudsman, and the Ombudsman have said they think the bank has made a reasonable offer. I note neither of them have come up with any legal reasoning.

 

Thanks for any help.

[BankFodder]

£400 is certainly extremely low and frankly even your calculation of £4000 sounds rather on the low side. Don't expect any joy from the ombudsman. The ombudsman service is limp wristed and far too cosy with the banks. Their remit is to produce a solution which is fair to both sides. This means that there is a compromise. However, we are dealing with PPI here and the banks have had their fingers in your pockets and there should be no compromise.

 

It would be helpful if you could set out the basis of your calculations here – and also may be the basis of the banks calculations if they have provided them to you.

[Derfel]

Thanks for the reply.

 

This attached table is the result of a script I wrote,

it starts with the initial amount of £276,

debits it to his overdraft which starts at zero

(we're only counting the portion due to PPI),

debits the £6.86 PPI premium payments to the overdraft when they originally came out, and adds compound overdraft interest, and the portion of the annual arrangement fee due to the overdraft.

 

 

We ignored the overdraft turnover charge as it was getting a bit complicated and it was small.

 

 

We truncated it at 2005 when the overdraft was finally paid off, and charged simple interest after that.

 

I'll get the other paperwork from him when I next go to his house in the next day or so.

ppi.pdf

[BankFodder]

Well I hope somebody comes who is better at the calculations than I am.

 

Have the bank given you their calculations or have they simply given you a global sum?

[Andyorch]

The fact that this is over a period of 27 years should equate to more dependant on whether you are requesting compound interest or simple interest only and what type of policy...single premium...monthly premium....etc.

 

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

 

Regards

 

Andy

[dx100uk]

sadly not the right way to do it.

 

 

you need to use the fos ci sheet.

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

 

you don't enter any the of int entries you have

you simple put the int rate as an apr in cell d15

nor annual fees