Calculating PPI on Credit Cards

[MaxedOutMan]

Re: Calculating PPI on Credit Cards

Oh dear.....the spreadsheet will never be the same if you do lol

[pompeyfaith]

Re: Calculating PPI on Credit Cards

Indeed Max



hehe

[MaxedOutMan]

Re: Calculating PPI on Credit Cards

So looking at the Tesco original ss, it seems they've added 8% interest from the day the credit card was paid off in Jun 07, rather than from when the original PPI was added to the account starting in Mar 02?

I noticed the PPI payments are in the 'Charges 2 Penalties' column.....is that correct or should they be in the 'Charges 1 PPI' column?

Which one is right?

Obviously I need to respond to Tesco's offer so I want to make sure I don't screw up with my response (not too good at this interest thingy and annual APR whatnot). :tinysmile_aha_t:

Any chance of asking for distress and inconvenience compensation?

And that is a cracking spreadsheet you have there!

[Budgie]

Re: Calculating PPI on Credit Cards

Sorry chaps, have been busy all day with work and only just got home.

Will have a look at stuff tonight / tomorrow morning, but it looks as though you have everything under control.

Budgie

[Turboman]

Re: Calculating PPI on Credit Cards

Sorry chaps, have been busy all day with work and only just got home.

Will have a look at stuff tonight / tomorrow morning, but it looks as though you have everything under control.

Budgie

Not me mate----I hate bloody credit card stuff----Bill is going to be in touch with you------I prefer Loans!!!

Although-he keeps telling me I have to understand it for my Barclaycard stuff (yet to keep going)------but it so so switches me off----lol----I have never got to grips with it!!!!!

[Bill-K]

Re: Calculating PPI on Credit Cards

So looking at the Tesco original ss, it seems they've added 8% interest from the day the credit card was paid off in Jun 07, rather than from when the original PPI was added to the account starting in Mar 02?
It seems like they've done summat like that, yes.
I noticed the PPI payments are in the 'Charges 2 Penalties' column.....is that correct or should they be in the 'Charges 1 PPI' column?

Which one is right?
They are both calculated in the same way, but I've copied the figures to a later version (attached below) - which actually increases your claim by another £35 approx. This is due to a Compensatory Interest calc. glitch which your query highlighted. LOL - somewhat akin to a politician's reply - "I'm glad you asked that question...!!!"
Obviously I need to respond to Tesco's offer so I want to make sure I don't screw up with my response (not too good at this interest thingy and annual APR whatnot). :tinysmile_aha_t:

Any chance of asking for distress and inconvenience compensation?
Why not, indeed ? The FOS have awarded £500 or so - but you need to show that you have been caused such distress - eg., by being fobbed off with cr@p, etc.
And that is a cracking spreadsheet you have there!
Thank you, guv'nor. Still a work in progress. Not resting on our laurels, here - that just causes pressure sores !!!

....

[Bill-K]

Re: Calculating PPI on Credit Cards

Sorry chaps, have been busy all day with work and only just got home.

Will have a look at stuff tonight / tomorrow morning, but it looks as though you have everything under control.

Budgie

Cheers, Bud. Thanx for your input so far. Look forward to more. Your comments on the spreadsheet calcs would be particularly welcome, sir !!!

[Budgie]

Re: Calculating PPI on Credit Cards

Hi Bill,

Very nice spreadsheet. Yours I mean not the Tesco one !!!

I concur, Tesco calculation is wrong as they have added the compensatory ( 8% per annum simple ) only from date when the credit card was paid off, not from the date of each ppi payment. Naughty Tesco.

Hi Maxedoutman -

I suggest that you go back to Tesco ( email will be quicker )
Just a short email to state that you have checked their calculations but have noticed they have made an error. State that you will be happy to send them a copy of Bill's spreadsheet if they doubt your word.

As of today you consider that to settle your claim in line with FOS redress requirements they need to refund you the following :-

PPi premiums of £1575.59
Apportioned debited interest of £491.33
Compensatory Interest (8% simple PA ) of £930.59

Total £2997.51

In addition suggest that they also pay a goodwill gesture payment of say £500 for the distress and inconvenience caused to you and your family.


Making a grand total of £3447.51

Provide them with your bank account details and request that they transfer that amount to your account without further delay.

Rgds Budgie

[cappo]

Re: Calculating PPI on Credit Cards

Hi Bill,

Very nice spreadsheet. Yours I mean not the Tesco one !!!

I concur, Tesco calculation is wrong as they have added the compensatory ( 8% per annum simple ) only from date when the credit card was paid off, not from the date of each ppi payment. Naughty Tesco.

Hi Maxedoutman -

I suggest that you go back to Tesco ( email will be quicker )
Just a short email to state that you have checked their calculations but have noticed they have made an error. State that you will be happy to send them a copy of Bill's spreadsheet if they doubt your word.

As of today you consider that to settle your claim in line with FOS redress requirements they need to refund you the following :-

PPi premiums of £1575.59
Apportioned debited interest of £491.33
Compensatory Interest (8% simple PA ) of £930.59

Total £2997.51

In addition suggest that they also pay a goodwill gesture payment of say £500 for the distress and inconvenience caused to you and your family.


Making a grand total of £3447.51

Provide them with your bank account details and request that they transfer that amount to your account without further delay.

Rgds Budgie

slick info budgie

[Budgie]

Re: Calculating PPI on Credit Cards

Bill,

There is a side discussion that we need to have because I am pretty sure Tesco will argue that they have been 'generous' by calculating debited interest redress on the cumulative total of ppi premium refund. They could possibly argue that they only needed to add one months debited interest refund per ppi premium.

I suppose our argument back to them would be that it depends on the order of allocation of payments to the account and that normally older interest and charges would be settled before newer interest etc.

The usual FOS redress guidelines are pretty clear and I think we can firmly suggest that both apportioned debited interest refund and compensatory interest should be applied cumulatively to PPI premiums from date of the ppi premiums entry on the account to the date of settlement. With the apportioned debited interest refunds only ceasing to be accumulated when ( or if ) the account balance is reduced to zero ( ie when debited interest is charged ).

[Budgie]

Re: Calculating PPI on Credit Cards

Also just started looking at the Lloyds PDF.

Interesting !

They quote the calculation method for redress as follows :-

The financial business should:

(A) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums to work out the balance without PPI;
(B) pay the difference between the actual current balance and the revised balance
(C) if that produces a credit balance for any period, pay credit interest on that balance for that period at
8% simple per year


This is basically what Tesco have done in their calculation !!!

Maxedout man, did Tesco not send you any explanation of how they had been instructed to calculate the redress, or did FOS provide you with any information?

Please hang fire on the email to Tesco for the moment !!!!!

[MaxedOutMan]

Re: Calculating PPI on Credit Cards

Budgie, I will email you the Tesco letter when I get home (about 1730hrs).

Just to clarify, this didn't get to the FOS as Tesco agreed they mis-sold the PPI.

[Budgie]

Re: Calculating PPI on Credit Cards

OK, will look at the letter when you send it!

[Budgie]

Re: Calculating PPI on Credit Cards

Just for reference for later, am sure Bill is already aware of this !!!

how does the ombudsman approach redress where a PPI policy has been mis-sold?

[MaxedOutMan]

Re: Calculating PPI on Credit Cards

I've just emailed the Tesco Letters to you Budgie. Hopefully you receive them ok. If not, let me know.

Cheers all.