8% interest on barclays packaged account refund - is it correct?

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

Hi
Thanks

The start dates are on the paperwork.

I don't know what the loan amounts were. Wouldn't have been over 5000.

It looks like I started one then after three for months took out another.

I don't know what the rates were either.

All i have done is use the ppi.figures they have supplied and divided them by the number of months, three months for first loan and thirty for the second.

I can get the bigger loan in The ballpark but not the shorter one.

I had no loans directly before these. The calcs are probably right but Id just like to undetstand them.

I thought that by including the Mse letter they were sort of endorsing themselves!

Cheers for looking.

Melann

- - - Updated - - -

No missed payments. No further loans.

Melann

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

Hi Turboman
I have sent you a private message also.
I am still awaiting info from Barclays to give us the info needed to check the calculations.

On the redress letter I sent you, the shorter loan on page 6, as there is an outstanding amount of ppi detailed there, do you think this means That when I refinanced with the longer loan that the amount I had to borrow would be to pay off the outstanding loan balance and outstanding ppi balance? As well as paying ppi on both loans too?

Melann

[Turboman]

Re: 8% interest on barclays packaged account refund - is it correct?

Right—have studied the info you gave me and summarised in the attached spreadsheet.

Melann-B.xls


The spreadsheet has 3 worksheets within.


Normally I would want to view the original Agreements + both Settlement Letters which would detail the breakdown between Loan Advances, New PPI Premium & Associated Interest, Any Old PPI & Associated Interest carried forward between Loans

However, we are where we are ---so will answer your original questions to the best of my understanding:


--PPI is added to loans as a one off payment at the outset and your total loan is then comprised of CASH ADVANCE + PPI PREMIUM. Interest is then calculated on both at the appropriate rate taking into account the loan term period. This process is called Loan Amortization and the resulting monthly payment is usually the same throughout the loan term unless the lender increases the %’ge (or even decreases it) See here:


http://www.legalbeagles.info/forums/showthread.php?24844-Understanding-PPI-Calculations-Concept-of-Loan-Amortization



--When a loan is settled early, a new loan is often taken out to pay off the old loan—but the amount of PPI within that settlement figure is effectively now included in the new loan—so must also be redressed.


--In your case, you received £337.06 as a rebate leaving an amount of £63.10 worth of PPI unrefunded from Loan 1.


--I have no means of checking your PPI Premiums paid or the £4.42 residual PPI in loan 2 (from loan 1)


--The attached spreadsheet summarizes all the figures in the first Worksheet—and on the last 2 worksheets I have tried to reconcile the 8% Statutory Interest and like you, are within a small amount on Loan 2 (£531.80 cf £538.71)---but like you I get a higher figure for Loan 1 (£67.04 cf £45.23)----For Loan 2 btw I have worked backwards to deduce the monthly payment (click on the cell and inspect the formula)


--Hope this helps a bit

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

Cheers.

I will look at as after work tonight.

The rebate amount, would Tjat have been taken off loan 2 at the point of getting it?

I know its really a question for Barclays but they haven't responded to my info request.

Melann

[Turboman]

Re: 8% interest on barclays packaged account refund - is it correct?

I believe that --your rebate of £347 ish would be a credit on your bank statements as it is effectively a rebate on your Loan 1 PPI Policy.

And your new Loan,excluding any PPI Policy Premium Loan--(as this goes direct to the insurance company -less commission) would be shown as a credit amount for the new loan as detailed on your loan agreementast--with the full cash advance (even though some of it is to pay off the original loan)

You would then have a debit entry to pay off the original loan 1

Cheers.

I will look at as after work tonight.

The rebate amount, would Tjat have been taken off loan 2 at the point of getting it?

I know its really a question for Barclays but they haven't responded to my info request.

Melann

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

I will assume that's what happenned then. As it was quite a long time ago I can't remember. It likely mentions it on the settlement letter which for whatever reason they want to keep to themselves.

If i ever get the further info, ill have another attempt at the spreadsheets. I am so sad! No,inquisitive!!

May be in touch at a future time if that is okay.

[Turboman]

Re: 8% interest on barclays packaged account refund - is it correct?

Just like me--I've got to really understand things like this---or I go unnecessary-lol

I will assume that's what happenned then. As it was quite a long time ago I can't remember. It likely mentions it on the settlement letter which for whatever reason they want to keep to themselves.

If i ever get the further info, ill have another attempt at the spreadsheets. I am so sad! No,inquisitive!!

May be in touch at a future time if that is okay.

[Turboman]

Re: 8% interest on barclays packaged account refund - is it correct?

Lost my way for a bit--have dramatically amended post 20 above

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

Okay, so I won't have been paying ppi on ppi?

Also I've just added thes residual ppi of 4.42 onto the 63.10 of loan 1.

This makes 8% Interest £71.86 and total payable after tax to be 128.76 do approx £ 29 short in total.

On loan 2, they mention the residual ppi and a high figure for the stat intetest which combined come to about £29.

Do you think that's a coincidence?

Melann

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

P.s thanks for the loan amortization explanation. I think I knew what it was but never heard the name.....from my research into paying offy mortgage early and being wowed at the interest saving.

[melann]

Re: 8% interest on barclays packaged account refund - is it correct?

Finally Barclays have responded with some of the information I requested. I made two queries. One was that one one loan there was no interest incurred due to ppi. In the reply they.apologise for omitting this amount and gsve deposited it in my account. But I think this also needs the 8% stat interest.

I have sent an email to legal beagles ppi account also for the attention of TURBOMAN.

Melann

[Turboman]

Re: 8% interest on barclays packaged account refund - is it correct?

Yep--got your E-Mail

Of course I'll look over your letter

Send me the recent Barclays reply though to ppi@legalbeagles.info

Sorry not replied earlier--been poorly
Ok now though

Turbs