confused...help/advice please?

[redhaze6]

Hi guys, I was wondering if anyone could shed some light on this for me as I seem to be going around in circles! I received a letter from my bank stating i may have been miss sold PPI - I didnt even know I had it on my loan.However,its the figures that are confusing me. I took out a 5000 loan over 5 yrs (60 months) the payment per month was £198.60. The interest rate 21.74%. I read on a thread in a forum that if you calculate you're repayment amount without PPI the difference in that monthly payment vs what you are paying would be how much PPI you have paid. According to this site, my monthly payments on 5000 over 60 months with an APR of 21.74% should be £137. This leaves a difference of £60.40 per month. Over 60 months this is £3696!!! Surely this can't be PPI?! By my calculations, I've paid a total of £11916.00 for a £5000 loan...isanyone able to advise?! Thanks.

[di30]

Re: confused...help/advice please?

Hi guys, I was wondering if anyone could shed some light on this for me as I seem to be going around in circles! I received a letter from my bank stating i may have been miss sold PPI - I didnt even know I had it on my loan.However,its the figures that are confusing me. I took out a 5000 loan over 5 yrs (60 months) the payment per month was £198.60. The interest rate 21.74%. I read on a thread in a forum that if you calculate you're repayment amount without PPI the difference in that monthly payment vs what you are paying would be how much PPI you have paid. According to this site, my monthly payments on 5000 over 60 months with an APR of 21.74% should be £137. This leaves a difference of £60.40 per month. Over 60 months this is £3696!!! Surely this can't be PPI?! By my calculations, I've paid a total of £11916.00 for a £5000 loan...isanyone able to advise?! Thanks.

Hi and welcome

I am not the one for the calculation side, but can help more on the reclaiming if you require this.
However, below is the link to "understanding ppi calculations" by Turbo and Bilk etc.

If you've not checked the link out yet, please do and see if it can help, meanwhile maybe one of our folks more in the know of how calculations work will be along shortly, good luck.

http://www.legalbeagles.info/forums/...I-Calculations

[Bill-K]

Re: confused...help/advice please?

Hi and welcome, RedHaze6. If you have a copy of your original loan agreement, then that would be good, as we may be able to calculate fairly precisely. If not, then we'll try and use the figures you have so far. Either myself or Tuboman should be able to give you a fair idea of your expectations shortly.

If not - then post up a reminder, as a 'BUMP.'

[redhaze6]

Re: confused...help/advice please?

Hi, thanks both. I don't have my original agreement however have my last loan statement so both the repayment amount and APR are correct. What other info would I need pls? .

[Bill-K]

Re: confused...help/advice please?

Unless Turbo beats me to the post, I'll try and post up a spreadsheet 'forecast' of what you might expect, based on the info you gave us in post #1, RH.

[Turboman]

Re: confused...help/advice please?

Hi, thanks both. I don't have my original agreement however have my last loan statement so both the repayment amount and APR are correct. What other info would I need pls? .

Have you got all the statements so we can see the initial entries as to how much the Loan was & how much the SPI Loan was (PPI)?

How many payments within the 60 month loan have you now paid?

What is the outstanding balance (& date) of the last entry on your statements?

[redhaze6]

Re: confused...help/advice please?

Hi. Was 60 payments. I Don't have any paperwork other than the final statement. I have paid all 60 and the loan is now paid in full.

[Turboman]

Re: confused...help/advice please?

So I deduce you took a loan of £5,000 with PPI added as an extra amount on top making a total monthly payment of £198.60

Over 5 years at 21.74% this equates to a total loan of around £7,230 using amortization

And the ratio of PPI Loan to total loan is then around 30%

This is very high--around 18% is average (who was the Lender?)

If you think these figures are correct-give me either the last payment date or the first and I will calculate the additional 8% stat interest you would be due

So--total expected back is 60 x (30% of £198.60) + 8% on each of the 60 pymnts from date of each payment to date of redress

ie--£3,574 + 8%

Just confirm above and supply the date and I will post a spreadsheet which illustrates the theory

Turbs

Hi. Was 60 payments. I Don't have any paperwork other than the final statement. I have paid all 60 and the loan is now paid in full.

[Turboman]

Re: confused...help/advice please?

Off shopping--Here's speadsheet making a few assumtions--let me know if you don't follow

Redhaze-2.xls

EDIT--Version 3 supercedes this 2 posts further down

[redhaze6]

Re: confused...help/advice please?

Thanks turbo. It was Barclays! Last payment date was 1st May 2013. From my little understanding of this, the calculations look right based on the figures and the total amount I have paid over 60 months. Thank you for taking the time to look into it for me.

[Turboman]

Re: confused...help/advice please?

You are welcome

I've amended the Date of First Payment to 1/6/2008 which then gives 1/5/2013 as final pymnt (60th)

Revised figures attached as version 3

Redhaze-3.xls

Thanks turbo. It was Barclays! Last payment date was 1st May 2013. From my little understanding of this, the calculations look right based on the figures and the total amount I have paid over 60 months. Thank you for taking the time to look into it for me.

[Bill-K]

Re: confused...help/advice please?

Well done with the figures, Turbo !

I agree - the PPI apportionment is almost 31%, which is very high. Any way we can re-check this ?

[Turboman]

Re: confused...help/advice please?

Thanks Bill

Actually -just reverse engineered using Pine Grove Software which is more accurate than the Excel Template--and assuming that these 2 items are correct from initial post 1

1. APR is 21.74%
2. Mthly Payment was £198.60

This deduces the loan was (over a 60 month term) for £7,370 (not £7,230) which gives 32.1574%!!!--ie £5,000 cash loan & £2,370 SPI PPI Loan

Well done with the figures, Turbo !
I agree - the PPI apportionment is almost 31%, which is very high. Any way we can re-check this ?

[Bill-K]

Re: confused...help/advice please?

So - Pine Grove makes it look even MORE dodgy, then !!! Well done for the reverse-engineering, BTW - like 'Moon-Walking' with maths - only mad dogs and Yorkshiremen go out in the mid-day sun !!!

Seriously though - it seems to me as though you have 2 options, RH:

1. Proceed with the claim, using the figures we have so far. I suspect that this will be refuted, and we may then be given some figures to show why;

2. Send a CCA s.77-79 request, along with a Data Subject Access Request. These will cost £11, but should secure the info needed to ascertain the actual PPI premium, along with a complete set of account statements. Ideally, this needs to be done within 6 years of the account inception.

[redhaze6]

Re: confused...help/advice please?

Thanks guys. Extortionate aye?! The man I spoke to at the bank has filled all the forms in for my complaint so just have to wait now...ill see what they say and if they refuse it or its no where near that figure, I will request the info turbo mentioned above. Thanks again guys, you've really helped