How is credit card ppi calculated ?

[Battendown]

Hi
I want to claim back ppi on an old defaulted credit card that I still owe money to.

I'm currently in an arrangement where I pay a small amount of money a month.

I was misssold the card in my local bank branch as I wasn't working at the time. The balance is around £7,400 and I took it out in 2000 and it defaulted around 2011.

I sort of know that the ppi I may get back will cover the balance IF I hadn't made a claim on the ppi in 2010. What I want to do is find out if it will be enough to cover that as well and be enough to clear the card, or reduce the balance.

My card was mostly up to its limit, where the bank just used to raise the credit limit everytime I reached it.

I have all my statements, so I know the amounts of ppi and the interest paid each month.

The ppi premiums attracted interest every month, and this interest was compounded. Do you get this back, or is it the simple interest each month on the ppi premium paid ? As I've heared lots of different things with this.

Any help will be appreciated.

[Undercover Elsa]

Re: How is credit card ppi calculated ?

Hi Battendown

You can find Excel spreadsheets for the calculations here: http://forums.all-about-debt.co.uk/s...Redress-Offers

Elsa x

[PlanB]

Re: How is credit card ppi calculated ?

will cover the balance IF I hadn't made a claim on the ppi in 2010.

Was that claim successful? If so that may impact on any claim for missellling PPI. Or if it was refused then you're probably in with a chance.

Plan B x

[Battendown]

Re: How is credit card ppi calculated ?

Hi Battendown

You can find Excel spreadsheets for the calculations here: http://forums.all-about-debt.co.uk/s...Redress-Offers

Elsa x

Hi Elsa, thanks for your reply. Unfortunately I don't have a computer to do the spreadsheet, I only have my phone.

[Battendown]

Re: How is credit card ppi calculated ?

Was that claim successful? If so that may impact on any claim for missellling PPI. Or if it was refused then you're probably in with a chance.

Plan B x

Hi Plan B, I used to think if you'd made a successful claim on a ppi policy that you couldn't complain about misselling, but apparently you can. It all hinges on the circumstances at the time it was misssold. If you win then they take any monies paid out for the claim away from your redress and you then get the balance which would probably be offset against the balance owing on the card.

But I've heard recently that a lot of people are getting the money paid to them and it not being offset.

What I want to check really that there is enough to cover the claim. I've heard/read a lot of stories regarding credit card ppi claims with a similar balance to me getting massive amounts of money, and others getting little more than the ppi they paid.

[Undercover Elsa]

Re: How is credit card ppi calculated ?

Maybe use an Excel app?
Not my area, but maybe something like this? https://itunes.apple.com/gb/app/micr...586683407?mt=8

[Battendown]

Re: How is credit card ppi calculated ?

Maybe use an Excel app?
Not my area, but maybe something like this? https://itunes.apple.com/gb/app/micr...586683407?mt=8

I have Calc XLS app that I downloaded before to try and use the spreadsheet, but because I don't really know what I'm doing it didn't help.
If I knew how they calculated the interest on the ppi payments that were made each month I would be able to roughly work it out myself.

[Undercover Elsa]

Re: How is credit card ppi calculated ?

I've asked Di, our lovely PPI lady, to look in if she can xx

[Battendown]

Re: How is credit card ppi calculated ?

Thanks Elsa xx

[julian]

Re: How is credit card ppi calculated ?

There are 2 further options.

Go to the library and use a PC there. Normally they have a range of apps. Then you can send it to your email address or put it onto a USB memory stick for future fiddling.

Use pen(cil) and paper and work out the compound interest using the standard algebraic formula. A bit long-winded but not impossible as you will have a calculator on your phone, unlike those of us doing Cost Accounting in the Swinging Sixties.

[Battendown]

Re: How is credit card ppi calculated ?

There are 2 further options.

Go to the library and use a PC there. Normally they have a range of apps. Then you can send it to your email address or put it onto a USB memory stick for future fiddling.

Use pen(cil) and paper and work out the compound interest using the standard algebraic formula. A bit long-winded but not impossible as you will have a calculator on your phone, unlike those of us doing Cost Accounting in the Swinging Sixties.

Hi Julian,
Thanks for your reply. I should be able to work it out with pen and paper, even though it will take me a long time.

What I really want to know, if you win a ppi complaint, do you get the compounded interest back that you paid each month on the ppi premium. If you don't pay your balance in full each month then there is interest charged on the ppi premium, and the following month the interest attracted interest.

Now I've heard lots of different answers to this, some say yes and some say no.

I know that you get 8% simple interest if the balance on the card was in credit at any time.

The difference in money would be a lot more if it was compounded interest at the card rate.

I need to know if it's worth my while putting in a complaint as I have previously claimed on it, so it needs to be more that what they paid out.

[PlanB]

Re: How is credit card ppi calculated ?

I need to know if it's worth my while putting in a complaint as I have previously claimed on it, so it needs to be more that what they paid out.

I'll admit I know zippo about PPI but I think you need to consider more than just the maths.

This account is still a live debt of £7.5k which you are paying by instalments which the creditor has accepted on a voluntary basis. You need to assess whether making a PPI claim under those circumstances could trigger a negative reaction. I doubt it but better safe than sorry.

Have you established whether this debt is enforceable by sending a CCA request at any stage? Maybe give us more details about the debt so we can take an overall view of the situation while you're busy calculating the potential reclaim figures.

I think it would be wise to do some more research before you make your complaint then you'll know what ammunition you've got if they do turn nasty.

Please provide the following information for this account:

• Type of account (credit card/loan)
  
  
• Date commenced (ideally before April 2007)
  
  
• Approx balance
  
  
• Date last paid (approximate date you last made a FULL payment)
  
  
• Are you on arrangement or not paying
  
  
• Status (default/in arrears/up-to-date)
  
  
• Account owner (who is writing to you, a DCA or the lender)

Plan B x

[Battendown]

Re: How is credit card ppi calculated ?

Hi Plan B,

I've been putting a lot of thought into this for a while. I haven't sent a Cca request to them as yet, as I'm afraid it may tip them over the edge. This is by far my biggest debt.

I also have a bank account with them (Lloyds) which I have had since the early 80s. It has a large overdraft (£1,000) which I can't afford to pay back as yet.
I just keep it ticking by running a small amount of money through it each month.

First I'm going to to make a complaint to the bank (Lloyds) regarding a string of
consolidated loans I had in the late 80's /early 90s (all paid off lol), all with single premium Ppi. I just found the agreements and all the loan and bank statements for them.

I'm hoping to get a few quid behind me first, just in case they call in the overdraft.

I've also read on other forums that Lloyds often pay out without offsetting the debt. This would be handy, for Full and finals on some of our debt.

I'm also going to be complaining about ppi on any of our debts that are paid off or statue barred. One of hubbies went statue barred earlier this year when they were still looking for the cca. Horray !!!.
The original creditor has now sent a letter saying that ppi may have been mis-sold

I'll post the info on the Lloyds Credit card later when I find the default date and date I last made a full payment.

Battendown x

[di30]

Re: How is credit card ppi calculated ?

Hello there

So sorry for my late response,and thank you for your pm message our lovely Undercover Elsa. I did used to have details of Calculating of PPI but unable to find it. Is Bilk still on the forums?

Is there any updates on this one since you posted last? thank you.

[di30]

Re: How is credit card ppi calculated ?

........Been searching through the forums, what about these here?
http://forums.all-about-debt.co.uk/f...I-Calculations