Tesco Loan PPI reclaim win!

I have spoken to FOS today, there are meetings going on between FOS & Tesco PF as FOS have had many requests to check refunds of PPI from Tesco & have found in many cases that there are discrepancies with the way that FOS say the refunds should be calculated & how Tesco are calculating them, leading to reduced refunds.

FOS are trying to sort this out, so if you have received a refund from Tesco, make sure you have got back as much as you are entitled to & if you are not sure, contact FOS as you may be due to a further refund.

Tesco are disputing this but if we don't all fight back they will probably win.

If you look at this

Tesco Payment Protection Policy Summary

This section contains full details of our Payment Protection Insurance for loans customers who took out the policy prior to the 17th March 2009.

It goes on to state

Termination of Contract

If You cancel Your policy after the first 30 days following the Commencement Date, You are required to give the Insurer 30 days written notice. Once this notice is given You will be entitled to a refund of part of Your insurance premium provided You have not made a successful claim.
Since the amount the Insurer might have to pay in the event of a successful claim is greater at the beginning of the term than at the end the Insurer does not calculate Your refund on a pro rata basis. Instead the Insurer uses a formula called the Rule of 78, which reflects the way the risk changes over the loan. Below is a table, which explains what proportion of premium you would receive as a refund for 2 example loan terms.
http://www.tescofinance.com/personal/finance/finance/loans/policy-doc-ppi.html

Now I assume this is for all loans prior to the 17th March 2009 as it states but cannot be sure and it looks like tesco were using the Rule of 78 in their calculations of the refunds of PPI and this was actually abolished in 2005 for ALL new loans so anyone that took a loan after that date should not have had it applied.

If you took your loan after 2005 but settled after 2007 then you should not have had it applied and if your loan was over 10 years then this is the only one that can still apply rule of 78 at settlement. (But this has to have been a regulated agreement as the OFT asked that all lenders ceased using on unregulated loans anyway)
http://www.independent.co.uk/money/loans-credit/punishment-eases-for-early-payers-of-debt-492393.html




The reform will apply immediately for new borrowers. Existing ones who have loans for terms of 10 years or less, and want to settle early, will not benefit until 2007. Those with loans for longer than 10 years will not be covered until 2010.


It seems that some of you have had this wrongly applied I think and then tesco are paying you back the wrong amounts for the PPI refunds.

Maybe if T esco don't want to pay the right amount they will have to let the FOS adjudicate on the complaints and let the FOS come to a decision that does not involve a goodwill gesture but the right amount plus compensation.

michaelboyd2 wrote: »

Congratulations. I think I need to look into this for my sister.

Good luck to your sister as well Michael, what a lovely brother you are, if you need any help, give us a yell.;)

Gary1982 wrote: »

Hello im doing a claim for my ppi at the moment well saying that ive been waiting 16 weeks now and all im getting from them is we are waiting on more information from other departments, does anyone have any help?? ive been calling them but find it so hard to get anyone to pick the phone up in my eyes this has been going on to long......what do you think??

Many thanks
Gary

gary,

I was in a similiar position, with letter stating that they are awiting informaiton from other departments.
I went straight to FOS and within a week they called to say Tesco has agreed to pay redress.

I had a letter form FOS last week, which basically stated the methods used for compensation and if iagreed on the use of these methods. I signed and sent the document back recorded delivery on Monday, so now just waiting for TEsco calculaiton and offer.

if i were you, go to FOS direct stating your displeasure at the lenght of delay.