Egg Mis-sold me a Top-Up Loan

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

Good look forward to seeing the figures.

The PPI would have been to cover you over the term of your loan and when you repaid the loan cancelling the PPI there should have been a rebate of the PPI premium (obv depends on the PPI terms what and single premium or what).

This £3 - did they actually give you the cash ?

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Did they ever!

I'll get you the figures tonight hopefully. Its Project Egg.

[Guest]

Re: Egg Mis-sold me a Top-Up Loan

Hi
So the plan is to calculate the early settlement figures on the old agreements as they stand using the early settlement regulations.
These should match the settlement figures quoted .
Then calculate the PPI on both agreements including interest at the two contractual rates
Subtract one from the other, this should give you your total credit on the top up loan.
This is obviously going to be miles out.
What next ,Unfair relationship?
Certainly an option I think although you would have to give the creditor the chance to reschedule the loan.
I don’t think that there is anything in the regulations that stipulates naming the payee as a required term.
Certainly it is not prescribed.
Peter

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Certainly an option I think although you would have to give the creditor the chance to reschedule the loan.
I don’t think that there is anything in the regulations that stipulates naming the payee as a required term.
Certainly it is not prescribed.
Peter

Hi. Thanks for that. I am not adverse to the loan being re-scheduled but if it is then Egg should remove the default (or make it accurate), since part of the principle on the top-up is genuine borrowing, part isn't.

Noted ref the regs and yes, I don't think there's much mileage in going to court on unenforceability.

PPI is the way to go and possible mis-selling angle/unfair relationship.

I had made a F&F for 50% that was rejected and do feel that I should be looking at a decent reduction for having been sold this top-up and having paid for a ppi product that I have been paying for but never benefitted from all these years.

The figures requested by Amethyst to follow in a moment...
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As per Amethyst above "First step is to check the calculations on the redemptions, then sort out the value of the PPI miselling claim", the figures are as follows.

(I will post up the original loan and card agreements separately)

Original loan was for £5K plus £1085.70 single premium ppi. APR 7.9%.
Total amount paybale over 60 months £6085.70 @ instalments of £122.42 pm.

The sum repaid after only 12 months was £4593.42. The balance was £5265.35 (so the early settlement deduction was only £671.93.

Applying the APR of 7.9% to the ppi I paid in the 12 months makes a total payment of £261.60 and applying the APR to the balance of the ppi on settlement that sum comes to an additional £1046.40 loaded on to the top up.

That makes for alarge disxcrepancy to me, plus I am not too sure how the discount of £671.93 was worked out and on what.

With regard to the CREDIT CARD monthly ppi, the gross amounts paid are too complicated for me to figure out (1 GCSE in Art was me ) But the total net sum paid over the 15 odd months of the card's life amounted to £457.77 in total (not taking interest into account).

There was no discount applied to the credit balance repaid by the top up.

So, to my eyes, that looks like £457.77 + £261.60 + £1046.40 = £1,765.77 (plus whatever interest applies to the monthly card ppi). I paid interest on that all over under the top up principle.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

Hi. Anyone any views?

BTW, Egg paid me £2.13 from the balance.

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

I'll get me coat

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

lol, not cloak ?

reading back x

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

cheers for figures will ask a maths whizz to have a look :billk: (cause even though i got GCSE Maths I still use my fingers for my 9 times table)

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

I would use my fingers but they got chopped off by Obi Wan (he was an undercover for Egg)

Cheers Ame, I look forward to knowing if Egg screwed up.

TDS

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

Interesting that Egg gave you £2.13

Wonder how much that cup of coffee will cost you in interest over the years lol.

So in strict technical terms that makes it a multiple agreement - you had a cash loan unrestricted use of £2.13 - and a restricted use loan (for egg card and egg loan) of the rest.

But i doubt very much if a judge would go for it (being realistic as I am)

[pompeyfaith]

Re: Egg Mis-sold me a Top-Up Loan

interesting as im in the same boat on 9 loans with ppi all multi agreements but not listed as such

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

Hi DebtStar. LOL, Ame used to be my fave mod - but we know each other better, now !!! :billk:
If I can help with the figures, I'll be glad to. Please correct me if I contradict anything posted here - I've just scanned through the thread, and try to just stick to the maths.

Regarding the original fixed loan, 17.84% of the total loan of £6085.70 was PPI. So, of the £1469.04 paid (12 X £122.42), 17.84% of this was PPI, which is £262.08. This roughly agrees with your calculation by a different route. This should be reclaimable, along with approx. £117 in compensatory interest at the Statutory rate of 8%. I've attached a spreadsheet to show this - the dates are assumed.

Applying the same 'apportionment' of 17.84% to the settlement figure of £4593.42 means that £819.47 of this was effectively PPI, which was then transferred to the consolidation loan. The settlement rebate may affect this, however, if there was a PPI rebate included which was any amount other than 17.84% of the total rebate.

Regarding the credit card, it is indeed a little more complex to calculate the PPI. To get a proper idea of the PPI to be reclaimed, we need to enter each and every card repayment, PPI charge, penalty charge and interest charged into a spreadsheet. Each month, the charges attributable to PPI are added to the balance, and these accumulate over time, so the final balance could eventually contain quite a large proportion of PPI. I'd be happy to send you a spreadsheet to calculate this.

It appears that the final balance on the CC account was approx £4800. For the sake of an example, let us assume that £500 of this was directly attributable to the PPI.

So, as an example, we have the new consolidation loan of £9396, and this can now be shown to include a PPI element of £819.47 + £500.00 from the above calculations. We then go on to derive a PPI 'apportionment' factor from this, which in this example would be 14.043%. Every repayment made to this account can now be taken to include 14.043% PPI, which is reclaimable, along with 8% comp. interest.

Finally - assuming that this loan is still current and running, we deduct the above amount from the remaining balance, along with the £262.08 & £117 reclaimed from the fixed loan. The remaining payments on the consolidation loan are then reduced accordingly.

So - we need to get the PPI calculated on the original 2 settled accounts, and nailed down to a clear and final figure. Then we can apply this to the consolidation loan, and calculate the loan re-scheduling.

I hope this helps - and doesn't clash with other posts here !!! If it does, then I'll be happy to learn from a further discussion !!!

[Amethyst]

Re: Egg Mis-sold me a Top-Up Loan

Love ya :billk: Thankyou xx

[The Debt Star]

Re: Egg Mis-sold me a Top-Up Loan

yep, though multiple it should be. I agree though, the main areas of contention are (a) interest (b) ppi and (c) mis-selling (breach of fiduciary relationship)
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Hi and many thanks for helping.

Regarding the original fixed loan, 17.84% of the total loan of £6085.70 was PPI. So, of the £1469.04 paid (12 X £122.42), 17.84% of this was PPI, which is £262.08. This roughly agrees with your calculation by a different route. This should be reclaimable, along with approx. £117 in compensatory interest at the Statutory rate of 8%. I've attached a spreadsheet to show this - the dates are assumed.

Cheers, that gives me more to go back to 'em on if they bounce my request for the former sum. Useful - very useful

Applying the same 'apportionment' of 17.84% to the settlement figure of £4593.42 means that £819.47 of this was effectively PPI, which was then transferred to the consolidation loan. The settlement rebate may affect this, however, if there was a PPI rebate included which was any amount other than 17.84% of the total rebate.

I don't know from the SAR info sent to me...I suspect there was no rebate of PPI as nothing alludes to this. The only data relates to the early settlement rebate, but I've put in for the PPI trabsfererd anyway and your figures are similar to mine so I'm probably on the right track?

Regarding the credit card, it is indeed a little more complex to calculate the PPI. To get a proper idea of the PPI to be reclaimed, we need to enter each and every card repayment, PPI charge, penalty charge and interest charged into a spreadsheet. Each month, the charges attributable to PPI are added to the balance, and these accumulate over time, so the final balance could eventually contain quite a large proportion of PPI. I'd be happy to send you a spreadsheet to calculate this.

Yes please, can you send me this?

It appears that the final balance on the CC account was approx £4800. For the sake of an example, let us assume that £500 of this was directly attributable to the PPI.

So, as an example, we have the new consolidation loan of £9396, and this can now be shown to include a PPI element of £819.47 + £500.00 from the above calculations. We then go on to derive a PPI 'apportionment' factor from this, which in this example would be 14.043%. Every repayment made to this account can now be taken to include 14.043% PPI, which is reclaimable, along with 8% comp. interest.

Finally - assuming that this loan is still current and running,

it is.

we deduct the above amount from the remaining balance, along with the £262.08 & £117 reclaimed from the fixed loan. The remaining payments on the consolidation loan are then reduced accordingly.

simples

So - we need to get the PPI calculated on the original 2 settled accounts, and nailed down to a clear and final figure. Then we can apply this to the consolidation loan, and calculate the loan re-scheduling.

so, in a nutshell, what do i need to do next? is it: (1) calculate the credit card PPI and (2) get Egg to confirm how they arrived at the settlement figure for the old loan?

TDS
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Have spreadsheet and will get to work on this.Cheers.

[Bill-K]

Re: Egg Mis-sold me a Top-Up Loan

Glad you found my rambling useful, DS !!! Yeah, you seem to have a good idea of the mechanics of this, and arriving at much the same result by a different route is always a good 'checksum' method.

If I've read this right, you have already claimed a specific sum in relation to the fixed loan then ? If so, was this anything like the £379 I have calculated ? If it was for less than this, then we may have to settle for that. However, if Egg offer less than you have claimed, then we could possibly use that as a way of revising the claim, by saying summat like "I have now had the opportunity to take further advice, during the time that this claim has taken to resolve. I now submit a revised claim, which includes...blah-blah." If you have been given no data to suggest otherwise, then we use the original apportionment ratio on the settlement figure. It's up to them to dispute this, but they will then need to explain exactly why.

If Egg have already sent a settlement offer, then I would suggest that you ask them for an explanation of their calculation - perhaps pointing out that this is a stipulation by the FOS, and that you cannot be expected to properly evaluate their offer without it. The FOS rules that you should be provided with an explanation of how the bank calculated the settlement offer. Technically, if they do not provide this adequately, the claim cannot be settled, as you are entitled to know how the offer has been calculated in order to make an informed decision on whether to accept it or not.

I'll send you a PM with the spreadsheet I suggest you use for the CC claim. You can be filling this in while you wait for Egg to send you their calculations on the fixed loan PPI. When we're happy with the CC figures, we send Egg our claim - BUT - I always suggest that we don't send them our spreadsheet. Instead, we claim an approximate amount "in the region of £XXX" - or "at least £XXX." This way, we don't limit our claim. Some settlement offers HAVE been made, which were more than we calculated, so it's best to see what they offer first. After all, they are the professionals - not us !!!

As the consolidation loan is still current, then Egg may well want to use all the settlements to reduce the balance of this. However, if it is not in arrears, then you could ask for the settlements to be paid by cheque - or at the very least, ask for the 8% interest to be paid directly to you, as it is compensation for depriving you of the use of the money paid as PPI. Of course, the PPI element of the balance still owing on the consolidation loan will not be paid, and will simply be deducted from the balance owing, thus reducing the monthly repayments.