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Hi all,
First of all, hello to everyone. Having perused the site quite often, I've finally joined this very friendly and helpful forum.
I apologise if the following has been asked many times before, but I couldn't find anything in the forums or through the search facility. I also apologise that it may be a little long-winded!
Having just had a PPI success with LTSB regarding PPI on a Credit Card, and having just been offered settlement for PPI on a Tesco Credit Card, I'm really struggling to understand how the payment was caluclated.
With LTSB, I was expecting about £670 (premiums plus 8%), yet received a cheque for £1500 (inc £200 for distress and inconvenience). Don't get me wrong, this was fantastic but I just don't understand how they came to this figure. I appreciate this is quite confusing, so I've had a look at how the FOS calculates Credit Card PPI refunds but still can't get the figures to add up.
With the Acceptance Letter, LTSB provided details of all of my statements from opening the acount in Feb 04 until Feb 11, along with a 'Breakdown of Calculations' coversheet. The total amount of PPI premiums paid were £470.00 (Feb 04 to Oct 05), yet I received a payment of £1300.00 - I just don't understand how the extra £830.00 was calculated (and I'm not moaning that this is too low).
One thing that is baffling me is the difference between the Actual Balance and the Reconstructed Balance. In all of the spreadsheets I've created, I can't get anywhere near to the £1,300 difference with the PPI premiums, 8% interest and incorporating the quoted Average Monthly Interest Rate of 1.39% (don't even understand how this figures into the calculation).
Could any of you kind folks provide any assistance as to how the figure is roughly calculated? Or is there a Credit Card PPI Calculator that includes the premiums, APR interest and 8% interest. I'm more than happy to provide any figures/copies of the letter if this helps. Anything to help me understand if the Tesco offer is reasonable (as it seems lower than I expected).
Thanking you all in anticipation.
Cheers all.
MaxedOut
First of all, hello to everyone. Having perused the site quite often, I've finally joined this very friendly and helpful forum.
I apologise if the following has been asked many times before, but I couldn't find anything in the forums or through the search facility. I also apologise that it may be a little long-winded!
Having just had a PPI success with LTSB regarding PPI on a Credit Card, and having just been offered settlement for PPI on a Tesco Credit Card, I'm really struggling to understand how the payment was caluclated.
With LTSB, I was expecting about £670 (premiums plus 8%), yet received a cheque for £1500 (inc £200 for distress and inconvenience). Don't get me wrong, this was fantastic but I just don't understand how they came to this figure. I appreciate this is quite confusing, so I've had a look at how the FOS calculates Credit Card PPI refunds but still can't get the figures to add up.
With the Acceptance Letter, LTSB provided details of all of my statements from opening the acount in Feb 04 until Feb 11, along with a 'Breakdown of Calculations' coversheet. The total amount of PPI premiums paid were £470.00 (Feb 04 to Oct 05), yet I received a payment of £1300.00 - I just don't understand how the extra £830.00 was calculated (and I'm not moaning that this is too low).
One thing that is baffling me is the difference between the Actual Balance and the Reconstructed Balance. In all of the spreadsheets I've created, I can't get anywhere near to the £1,300 difference with the PPI premiums, 8% interest and incorporating the quoted Average Monthly Interest Rate of 1.39% (don't even understand how this figures into the calculation).
Could any of you kind folks provide any assistance as to how the figure is roughly calculated? Or is there a Credit Card PPI Calculator that includes the premiums, APR interest and 8% interest. I'm more than happy to provide any figures/copies of the letter if this helps. Anything to help me understand if the Tesco offer is reasonable (as it seems lower than I expected).
Thanking you all in anticipation.
Cheers all.
MaxedOut
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