This may be a very minor thing, but I have worked out that Pepper are applying incorrect interest for the current year of 2024. I will share my calculations and ask if anybody else might be able to verify as well. I will say that the amount is very, very small, but with tens of thousands of mortgages that Pepper have, I'm sure it equates to a 7 figure sum.
Okay, so here is the breakdown, which I have rounded for simplicity.
Say I have €200,000 outstanding and my interest rate is 8.0%. According to the online Pepper portal, they will apply €43.84 interest to my balance for that specific day. €43.84 x 365 = €16,001.60, which would be my 8% if that amount remained static for the year. However, as 2024 is a leap year, the actual amount of interest that Pepper should apply is €43.72 for that specific day. €43.72 x 366 = €16,001.52.
So I work out that I am being charged roughly €43 extra for the year, and I have checked the 29th of Feb, they added their daily interest on that day as well. They say that Pepper service 130,000 mortgages, while they are all different values, if that was €43 for each mortgages, that amounts to five and a half million euro.
For anyone not on Pepper, their online portal changes each day with the amount you owe. I am an excel nerd and enter it into a spreadsheet and with some auto calculations, was able to establish the pattern of incorrect interest charges. Is there anybody else who might be bale to verify they are in the same boat?
Okay, so here is the breakdown, which I have rounded for simplicity.
Say I have €200,000 outstanding and my interest rate is 8.0%. According to the online Pepper portal, they will apply €43.84 interest to my balance for that specific day. €43.84 x 365 = €16,001.60, which would be my 8% if that amount remained static for the year. However, as 2024 is a leap year, the actual amount of interest that Pepper should apply is €43.72 for that specific day. €43.72 x 366 = €16,001.52.
So I work out that I am being charged roughly €43 extra for the year, and I have checked the 29th of Feb, they added their daily interest on that day as well. They say that Pepper service 130,000 mortgages, while they are all different values, if that was €43 for each mortgages, that amounts to five and a half million euro.
For anyone not on Pepper, their online portal changes each day with the amount you owe. I am an excel nerd and enter it into a spreadsheet and with some auto calculations, was able to establish the pattern of incorrect interest charges. Is there anybody else who might be bale to verify they are in the same boat?
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