PPI Calculation / help !

[wassa629]

Hi, new to the site. I'm after some advice on where my next step should be. I've just received a letter from MBNA stating that my complaint has been upheld and they are repaying me:


£153.70 - total amount of premiums charged from date of sale
£81.40 amount of associated interest
£200.82 8% gross interest
minus £40.16 in tax


So amount payable is £395.76


First i'm happy that it's been upheld but the me the figures seem totally wrong. My account start date was July 98 and the account end date was June 2011. From Dec 05 to Jun 2011 my balance was between £5000 and £10000 and according to my credit agreement i would pay 68p per £100 of my balance in PPI. So according to my calculations being repaid the premiums back alone i am owed a few thousand. My question is what should i do now? Should i go straight to the FOS or should i write to MBNA even though they have stated that this is their final response.

[Bill-K]

Re: PPI Calculation / help !

Hi Wassa, and welcome to you. I see Di30 has suggested you contact MBNA first of all, and I agree with that. Refer it to the FOS only if you can't get anywhere with MBNA, as the FOS usually take many months to decide on PPI claims.

I have used a spreadsheet to estimate the PPI at £0.68 per £100 on a balance that slowly increases from £5000 on01/01/06 to £10000 on 01/07/11, and this certainly supports your figures. It estimates £3417 in PPI premiums alone. To this should be added the apportioned account interest on the accumulated total of PPI, and also a further 8% interest on the final amount from the date of account settlement to the date of the settlement of your claim.

I'll just put my maths geek big glasses on, and work out the interest amounts ASAP.

[wassa629]

Re: PPI Calculation / help !

Thank you Bill-K, greatly appreciated.

[Bill-K]

Re: PPI Calculation / help !

OK., here's what I've got. :ranger:

Spready 02 is the estimated figures based on the period mentioned in your post above which started with a balance owing of £5000 and ends at £10000, when the account was then (presumably) cleared and closed.
It shows £3417,00 in PPI premiums charged,
plus £2321.72 in apportioned account interest charged - this is based on a 'guesstimate' APR of 20%,
plus £784.87 in Compensatory (Statutory) interest @ 8%.
A total of £6523.59 as at today's date, and increasing by £1.26 per day.

I then decided to do a 'prequel' to this in spready 01, by estimating backwards from the £5000 to £0.00 at the opening of the account. If that estimate is at all accurate, then it increases the total claim to:
£4930.00 in PPI premiums charged,
plus £7959.22 in apportioned account interest charged - this is based on a 'guesstimate' APR of 20%,
plus £1941.52 in Compensatory (Statutory) interest @ 8%.
A total of £14830.74 as at today's date, and increasing by £2.83 per day.

So, it certainly looks as though MBNA's offer is way too low. But if MBNA disagree, then you will have to prove that your figures are reasonably accurate, as estimates need evidence to show that they are reasonable estimates. The huge difference concerns me, though - either MBNA have made a huge error, or we have. Did the PPI actually run for the whole period the account was open, and did you make any claims on the insurance itself ? This would affect the payout. Ideally, you should use the actual figures from your statements - and if these aren't available, you should send MBNA a Data Subject Access Request (DSAR), which will cost £10 and should at least get you copies of your statements over the last 6 years.

Also -note that there is a column in the spreadies for Penalties, and if you were charged any penalties which would not have been applied if the PPI hadn't been charged, you can add these to your claim. Late payment fees don't usually count, but overlimit fees do count where the account would not have gone overlimit if PPI had not been charged to it.

Hope I've been of use, Wassa.

[wassa629]

Re: PPI Calculation / help !

Thanks again Bill, those figures look more like what I was expecting. I got hold of my figures last night; from 2007 to account closure was from noddle that showed my monthly balances then from2006 to 2003 I checked my online bank account that showed what my monthly bill was. Totalled up this came to over £4000 in premiums. I think I will now take your advice and send off a SAR. Would they send me how much I paid in premiums each month ?

[wassa629]

Re: PPI Calculation / help !

Sent off my SAR but decided to give MBNA a call. They say i cancelled the PPI in Feb 2000, suggesting i did it to lower my premiums. Wish i was that money savvi, i never realised i had ppi on the card til the other month!! Just wondering if anyone else has had this where the card company claimed the cardholder cancelled the ppi when they didn't?

[Turboman]

Re: PPI Calculation / help !

getting confused--re your other thread--why do you think you owe the reclaim firm around £5,000

At 25%-ish fee--that means your cheque was for around £20,000---or am I not understanding ????

[Turboman]

Re: PPI Calculation / help !

On your SAR you should get a photocopy of every months statement--I did from Barclaycard---loads of info!!!!!

Sent off my SAR but decided to give MBNA a call. They say i cancelled the PPI in Feb 2000, suggesting i did it to lower my premiums. Wish i was that money savvi, i never realised i had ppi on the card til the other month!! Just wondering if anyone else has had this where the card company claimed the cardholder cancelled the ppi when they didn't?

[Turboman]

Re: PPI Calculation / help !

So sorry---it was gazzaevo as the OP---got mixed up

getting confused--re your other thread--why do you think you owe the reclaim firm around £5,000

At 25%-ish fee--that means your cheque was for around £20,000---or am I not understanding ????