Hi
I am sure this has been gone over before, but this is a new area for me so please bear with me.
I recently got around to reclaiming my PPI from MBNA, the account had been closed since 2009 when I paid off the defaulted balance.
I received a refund totalling £380 payment and interest inclusive. The account was opened in 2005.
I thought I would check there figures so I SAR’d them.
First thing I noticed was that the cash refund part of the money (£113) did not include annual charges of tagged as card protection, £29 a pop. Also the interest refunded did not seem enough to me.
I know there are excellent spread sheets on here, but I thought I would make my own. My account had been varied from time to time in that the interest charged was gradually increased from 10% when I signed up to over 39% when terminated.
My understanding is that the account should be re-calculated in order to obtain a position which would equal the one that would exist if the premiums had not been paid. So with this in mind I designed my spreadsheat to compound each individual payment, monthly at the applied rate, with the facility to alter that rate in the same manner as it was on my account.
I then summed the balance of the charges on a monthly basis and compared that sum with the amounts due on the monthly statements.
To my surprise I found that there was a point where the amount paid in premium plus the compounded interest exceeded the balanced owed on the account, and what’s more the charges for not paying the minimum payments should not have been raised because at that point I was in credit.
The letter which accompanied their payment said that they would not enter into any further discussion on the complaint so I sent it directly to the FOS together with my calculations. I think they owe me about £650 on top of what they have paid me; this includes compounded interest on the charges wrongly applied.
Has anyone been down this path before, and are there any errors in my logic. All comments appreciated.
[FONT='Calibri','sans-serif']Peter[/FONT]
I am sure this has been gone over before, but this is a new area for me so please bear with me.
I recently got around to reclaiming my PPI from MBNA, the account had been closed since 2009 when I paid off the defaulted balance.
I received a refund totalling £380 payment and interest inclusive. The account was opened in 2005.
I thought I would check there figures so I SAR’d them.
First thing I noticed was that the cash refund part of the money (£113) did not include annual charges of tagged as card protection, £29 a pop. Also the interest refunded did not seem enough to me.
I know there are excellent spread sheets on here, but I thought I would make my own. My account had been varied from time to time in that the interest charged was gradually increased from 10% when I signed up to over 39% when terminated.
My understanding is that the account should be re-calculated in order to obtain a position which would equal the one that would exist if the premiums had not been paid. So with this in mind I designed my spreadsheat to compound each individual payment, monthly at the applied rate, with the facility to alter that rate in the same manner as it was on my account.
I then summed the balance of the charges on a monthly basis and compared that sum with the amounts due on the monthly statements.
To my surprise I found that there was a point where the amount paid in premium plus the compounded interest exceeded the balanced owed on the account, and what’s more the charges for not paying the minimum payments should not have been raised because at that point I was in credit.
The letter which accompanied their payment said that they would not enter into any further discussion on the complaint so I sent it directly to the FOS together with my calculations. I think they owe me about £650 on top of what they have paid me; this includes compounded interest on the charges wrongly applied.
Has anyone been down this path before, and are there any errors in my logic. All comments appreciated.
[FONT='Calibri','sans-serif']Peter[/FONT]
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