Egg ppi claim

[Sweetcheeks]

Hi everyone,
looking for advice about my offer from egg on my ppi claim they appear to have washed away part of my refund stating that I had a refund of £1201.99 but this was not so wrote to then a month ago asking for an explanation but no reply Can anyone help. Thank you

[di30]

Re: Egg ppi claim

Hi and welcome
I would write/email the Chief Executive Officer/Manager of the business and explain your situation with them, and how were they supposed to have refunded you, direct to bank, cheque etc? (if they made out they have already refunded you, ask them for any proof, because you have not at all received anything at all) if they say cheque you need to say that its possible its gone elsewhere because you can assure them you have not received it and they would be aware if it was cashed.

Any prbs from there, it would be a matter of complaining to the financial ombudsman service (FOS) but the Manager should look into this.
If you email them, write in the subject line "URGENT QUERY, requires immediate attention, and ask them for confirmation of them receiving the email.

Let us know how you get on, or any further probs, good luck.

[Sweetcheeks]

Re: Egg ppi claim

Hi thanks for you quick replySorry did not explain properly they said it was paid off my loan but this is not the case.
I borrowed £12000 over 84months they add£2595.99 ppi payments were £225.07 pm apr 7.66%
I made 29payments = £6527.03 and one of £9716.18 which makes £16243.21
If their was no ppi added my payments were £185.01 x29= £5365.29 +settlement figure of£8665.04
=£14030.58. Difference of £2212.63. They are offering. £2588.36 which includes £1194.39 interest
No matter how I calculate this I cannot get figures to correspond feel I'am getting ripped off somewhere
Any help please?

[di30]

Re: Egg ppi claim

Hi there
Looking at those figures it does seem something isnt right in what they are implying.

What you have there, I would ask The Manager/CEO of the business to look into this as you are not getting anywhere from the complaints section.

I am not the one for calculation side of things but can see what your getting at here. Hopefully one of the other folks here can look into this as well and give an opinion, but do write to the above as stated, and state you are requesting them to look into this matter for you as you feel there is a miscalculation, send them a copy of the letter you received, and request they write/email you by 14 days with a conclusion of this matter.
You have the right to contact the CEO of the business, as it appears the complaints dept are doing nothing. x

[Bill-K]

Re: Egg ppi claim

Hi "Sweetie" - We can take a closer look at the figures, and see if we can come up with an answer, but the apparent earlier refund of £1201.99 needs to be ascertained first, I think. This may have been a payout on a claim you made under the PPI policy, where the PPI policy actually paid out toward your payments for a while, and this would indeed have to be deducted from any subsequent mis-selling claim you made.

When you settled the loan, you would usually have done so with a 'settlement figure,' and this may have included a rebate on the PPI element of the total loan amount. This would normally need to be deducted from any PPI settlement offer, also. If you have the final and closing statement for the loan, then the £1201.99 may be shown on this, if it was such a rebate.

If you can check these aspects out first, it might yield an answer. If not, then I think that either Turboman or myself might be able to run your figures through our machine and see if we can make some sense of them. As Di has implied - they are not exactly 'stacking up' so far !!!

[Sweetcheeks]

Re: Egg ppi claim

Hi Bill-K

Thank you for you reply. I have done cals everyway I can think of but cannot get it to work out like their's
been T it to long now I'm brain dead. No never made a claim on the PPI Policy. And never missed or was late with my payments. So I'll start at the beginning this is what I've got
Oct 06. Loan £12000 + Ppi £2595.96 = £14595.96 monthly payment. £225.07. AIR 7.66%. APR 7. 9%
Year end statement reads Oct 2008 Balance £11439.75 paid 4 payments Nov 08 to Feb 09 = £900.28
requested settlement figure it was £9495.99 plus the March payment as they could not cancel this .
So on the 17th March09 I paid £9495.99 over the phone to them them on the 23rd they took from my bank £201.95 and £18.24 =£220.19 then on the 21st April 09 sent a refund to my bank for £18.35

[Bill-K]

Re: Egg ppi claim

When your brain has recovered sufficiently, SC, the way Turbo and I calculate Single-Premium PPI (SPI) refunds is by using an 'apportionment' method.

Of the total loan amount of £14595.96, £2595.96 was the PPI premium, which is 17.7855% of the total loan amount. Therefore, regardless of interest rate fluctuations or other changes in repayment amounts, 17.7855% of EVERY repayment will be attributable to PPI - because it represents the portion of that repayment which goes toward the 'PPI Loan.'

So, with a monthly repayment of £225.07, the monthly PPI repayment will be £225.07 x 17.7855%, which is £40.03.

29 such payments would mean you paid 29 x £40.03 in PPI before settling the loan, which comes to £1160.87. You could cross-check this by taking 17.7855% of the total loan repayments made, which would be £6527.03 x 17.7855% = £1160.865.

The final settlement payment appears to be £9716.18, and again 17.7855% of this was PPI, and this comes to £1728.07. Adding this to the £1160.87 PPI paid so far, brings the total PPI paid to £2888.94.

Finally, we calculate compensatory interest at the Statutory rate of 8% simple interest by using a spreadsheet, as the interest on each PPI repayment is calculated from the repayment date until the claim settlement date. I have taken 15/05/13 as the claim settlement date, and this adds a further £499.03, taking the final total claim quantum to £3387.97.

Their offer of £2588.36 is £799.61 short of my calculation - but they appear to have made an earlier deduction of £1201.99, for a hitherto undisclosed reason. So it would appear that Egg's original 'gross' redress calculation was £3790.35, which is £402.38 more than my calculation above of £3387.97.

Usually, because the PPI premium was paid as a single 'upfront' premium, then the insurance underwriter will have taken this and created a PPI policy that runs for a fixed period of time - usually 5 years. If the loan is settled before the PPI policy expires, then you are usually due a rebate on this PPI to account for this. This rebate is often refunded directly to the loan account at the time of the loan settlement, but may also be included as a part of the loan settlement calculation, and therefore 'hidden.' My guess is that the mysterious £1201.99 is in fact this PPI rebate - but Egg should confirm this, because the FSA/FCA rules for PPI redress require lenders to explain their calculations in order for claimants to be able to make a properly informed decision as to whether their offer is acceptable.

In the absence of any explanation, then it certainly appears that you are not being made a fair offer, and have every reason to refer the claim to the FOS. Unfortunately, the FOS take a very long time to adjudicate on PPI claims, so it would be better if you can resolve this with Egg first. They may possibly make an effort if you tell them that you will have to refer the matter to the FOS if they refuse to explain their £1201.99 deduction. This may well cost them more, as the FOS usually charge the lender a fee of £800 or more for every claim they have to investigate.

If you can post up a redacted copy of your closing (settlement) account statement - or list all of the final items after the 29th payment - including account balances - we may be able to identify the PPI rebate and/or this £1201.99. I have attached a copy of the spreadsheet I used.

[Sweetcheeks]

Re: Egg ppi claim

Hi Bil-K
thanks ever so much for spending your time working on my problem. Unfortunately I don't have papers with settlement backdown on as it was quoted over the phone and all account info was done online but when egg closed they stopped access to this and I did not back-up then.Looked at your figures and that's what I have, give or take a couple of pounds as I had to work cals in my head as spreadsheets don't work on ipad. Worked out on apportionment and rule 78 just in case but neither corresponded with theirs. Requested settlement after 28 months to settle in the 29th insurance docs say they will pay a refund of 44% when 1/3 through term so I get 44% of 2595.96=£1141.80 or with interest added £3363.36. 44%=£1479.87
Wrote and asked for full explanation of their cals at beginning of May but no reply.phoned but automated service. Finally found a phone no. that had a person on the other end Here it is in case anyone else is trying to contact Egg (Canada Square Operations). 0800 3582101. Unfortunately THE PRETTY POLLY on the end of the phone questioned WHY would I need them. Anyway after a long conversation with me and I think myself he agreed I could have them he would sent a letter in 10 to 14 days for me to sign and return with £10 and they will give me a copy of their calculations. Are they having a laugh?
Anyway this is what is on the original offer letter.

Total ppi premiums paid. £2595.96
interest on premiums paid. 416.07
plus 8%. 778.32
total. 3790.35

less rebate previously paid. 1201.99

compensation £2588.36


The only statement I have reads October 2007. Balance £13194.11
Nov 07 to Oct 08 12x£225.07 =. £ 2700.84
Oct08 Balance. £11439.75
interest accrued this year £946.47
interest paid£948.71


I have told them I will refer this to the FOS and they said that was up to me but if I did ALL COMMUNICATIONS WILL CEASE IMMEDIATELY

I await your comments and a BIG THANK YOU for your help

[Sweetcheeks]

Re: Egg ppi claim

Hi Bill-k
sorry about this but it gets worse, spoke to these clowns today and this is what they have said,
my balance at 21st jan 09 was £10965.83 minus rebate of ppi £1201.99 settlement £9763.83
then I said what about the payments of £225.07 on the 23rd jan 09 and 23rd feb 09 they should be deducted from my outstanding balance their reply well we have compensated you with 2extra months ppi
so our cals are correct. " DON'T THINK SO HUN" Well you prove it to us in writing then "DON'T WORRY
I WILL". Hope I can can I ? What do you think

[Bill-K]

Re: Egg ppi claim

Well, they do seem to have confirmed that this £1201.99 was the PPI rebate, so that seems to solve that mystery. I have revised my spreadsheet to take account of the repayment dates of 23rd monthly, and the settlement payment, final payment and final refund have now been entered as 'repayments' at the bottom. The previous spreadsheet added the PPI portion of the settlement, but did not add any 8% interest to this. The revised spready now adds this, and I think this may explain the difference between my calcs and theirs.

So, now I have:
28 repayments of £225.07 up to 23/02/09;
1 settlement payment of £9495.99 on 17/03/09;
1 further repayment of £220.19 on 23/03/09;
1 refund of £18.35 on 21/04/09.

Total paid = £15999.79.
Total PPI paid (with apportioned account interest) = £2845.65 (17.7855% of £15999.79).
Compensatory interest at 8% Simple = £1054.76 (to 15/05/13).
Total 'gross' claim amount = £3900.41.
PPI Rebate £1201.99.
Final claim quantum = £2698.42.

They have offered £2588.36, which is £110.06 less. If we adjust the claim settlement date to 01/07/13, then the claim quantum increases to £2727.73 - increasing daily by £0.62.

So - it now looks as though their offer is not far short of our calcs, now that we seem to have identified the £1201.99.

[Sweetcheeks]

Re: Egg ppi claim

Hi Bill-K

Thanks for your help. BUT STILL IN A QUANDARY. Think I must be thick as a plank Could you just check this for me please?

Payments without ppi £185.04 x 84 months = £15543.36. Same as on spreadsheet.

Paid 28 payments @ £185.04 =. £5181.12 = £10362.36

Then final payment of £9716.18 = £ 646.06 LEFT ON ACCOUNT SO HOW COULD THEY

REFUND £1201.99 What do you think?

[Bill-K]

Re: Egg ppi claim

I'm not sure I follow you, SC. I can't see where the £646.06 comes from, as the final payment will have cleared the account by reducing the balance to zero. Assuming that the £1201.99 was a PPI Rebate, and that the final £18.35 refund was a final settlement adjustment (possibly where they have re-calculated the account interest because the final payment was made before the original date they had anticipated) - then this is how the events would have unfolded:-

Account balance owing as at start of business on 17/03/09: £10899.82
PPI Rebate £1201.99 credited to account gives a balance of £ 9697.83
Main settlement payment of £9495.99 gives a balance of £ 201.84
Final monthly repayment of £220.19 gives a CREDIT balance of £ 18.35
Refund of £18.35 to account gives a closing balance of £ 0.00

The PPI Rebate will be paid to Egg/Citi by the insurance underwriters, as they will be refunding a portion of the original £2595.96 PPI premium to them. As I said, the £18.35 refund was probably a final adjustment, as the settlement figure would have been calculated to include interest up to a particular settlement date, and if the loan was settled early, then this interest would have been less.

Does that resolve your quandary, SC ?