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As requested by Bill-K, I've started this thread with an example of MBNA understating PPI redress by some 42%. Below is a reposting from the "...2 spare stamps" thread:
Hi a newbie here with an interesting, perhaps even outrageous, example of MBNA understating PPI recompense.
Background: I took out an MBNA credit card in Manchester Airport in August, 2000. Saleswoman completed the form (with PPI ticked) except for my signature. Circumstances in 2003 caused wife and I to seek help from CCCS and start a debt management plan. Last PPI payment my MBNA card was 11/12/2003.
Update: In April this year I complained to MBNA about PPI payments and quickly (to their credit) they came back with a letter saying that the complaint was upheld to the tune of:
£1412.63 PPI premiums, £280.20 associated interest and £136.23 applicable 8% gross interest (less £27.23 withholding tax).
I reflected on this, and thought "that £136.23 seems low". So SAR'd MBNA, and spent the last weekend reconstructing my account, and entering it into one of the Semiantics spreadsheets (V2.4, 25/10/12).
This showed that the "applicable 8% interest" totalled over £1400! So I double-checked using GCE Maths (or earlier) I=PRT; I=Interest, P=Principal, R=Rate of Interest, T=Time
From above, P(=£1412.63+£280.20)xR(=0.08)xT(=10.4575 years, from 11/12/03 to 27/5/14, date of MBNA letter), =£(1692.83x0.08x10.45), = £1416.22.
So you have found instances of 30%-50% shortfalls. I reckon this one is up there with them, at about 42% shortfall.
The spreadsheet worked wonderfully well thank you. APR was a jumble of Retail and Cash Interest, so I used the PPI apportionment option which as you rightly guessed gave a higher associated interest (of £292.48, opposed to the £280.20 MBNA have paid). The "8% compensatory interest column" came out at £1427.54.
I've written back to MBNA showing the FOS's worked example of PPI redress on credit card closed/PPI cancelled, then substituted their PPI total/associated figures to generate compensatory 8% interest of £1416.22.
I'll give them some time to come back, then over to FOS if need be. I'll post on developments.
Hi a newbie here with an interesting, perhaps even outrageous, example of MBNA understating PPI recompense.
Background: I took out an MBNA credit card in Manchester Airport in August, 2000. Saleswoman completed the form (with PPI ticked) except for my signature. Circumstances in 2003 caused wife and I to seek help from CCCS and start a debt management plan. Last PPI payment my MBNA card was 11/12/2003.
Update: In April this year I complained to MBNA about PPI payments and quickly (to their credit) they came back with a letter saying that the complaint was upheld to the tune of:
£1412.63 PPI premiums, £280.20 associated interest and £136.23 applicable 8% gross interest (less £27.23 withholding tax).
I reflected on this, and thought "that £136.23 seems low". So SAR'd MBNA, and spent the last weekend reconstructing my account, and entering it into one of the Semiantics spreadsheets (V2.4, 25/10/12).
This showed that the "applicable 8% interest" totalled over £1400! So I double-checked using GCE Maths (or earlier) I=PRT; I=Interest, P=Principal, R=Rate of Interest, T=Time
From above, P(=£1412.63+£280.20)xR(=0.08)xT(=10.4575 years, from 11/12/03 to 27/5/14, date of MBNA letter), =£(1692.83x0.08x10.45), = £1416.22.
So you have found instances of 30%-50% shortfalls. I reckon this one is up there with them, at about 42% shortfall.
The spreadsheet worked wonderfully well thank you. APR was a jumble of Retail and Cash Interest, so I used the PPI apportionment option which as you rightly guessed gave a higher associated interest (of £292.48, opposed to the £280.20 MBNA have paid). The "8% compensatory interest column" came out at £1427.54.
I've written back to MBNA showing the FOS's worked example of PPI redress on credit card closed/PPI cancelled, then substituted their PPI total/associated figures to generate compensatory 8% interest of £1416.22.
I'll give them some time to come back, then over to FOS if need be. I'll post on developments.
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