PPI Reclaiming Discussion part 4

smitchy73

MR_G_1979 wrote: »

Hi, am looking for some advice and I'm new to this so bear with me please.

I've just received an offer from Bank of Scotland this morning after a long running battle with them about credit card PPI they mis sold me back in 2006. The offer is as follows:

Refund of premiums : £765.16
Refund of interest applied to account because of PPI: £225.45
Interest at 8% calc'd until 13 September 2011: £21.22 (THIS IS THE BIT I'M QUERYING)
Total: £1011.83

can anyone tell me if this looks correct? I'm pretty sure the premiums paid etc is correct, but what figure is £21.22 associated with ? its not 8% of anything and surely, the 8% calculation should be 8% of the premiums paid year on year? I'm confused, please help. Don't want to accept if they are trying to pull the wool over my eye's and don't want to drag it on any longer if its correct. PLEASE HELP!!!

MrG,
The 8 % calculation is the interest on the calculation from the decision now till 8th September, when they plan to pay you the money if you accept.
Credit card's are a very complicated thing to work out as you have to take each payment form the beginning. So say you took this out in 2006 thats roughly 5 years, and the first month you had a ppi charge of say £20 on it and your card rate is 25% apr, then the interest on the ppi charge would be £5 per annum, so over 5 year you'd be entitled to your original charge of £20 + £25 interest(contractual), if at this point when they re-adjust your account with this and it takes you into credit(ie, they owe you) then you would get a further 8% simple interest on this, however, if you had a running outstanding balance of a few thousand quid you probably wouldn't get that.
The big thing to worry about it is to get the contractual interest, as most cc's are between 15 and 30% apr, some cc companies are trying to fob people off with the ppi payment and the 8% and not giving the 25% interest that they've been charged over the years.

This is why there have been some big payout over the past few weeks, one which was nearly £25K.

Hope this helps a bit, good luck and let us know how you get on.:D

smitchy73

skitter123 wrote: »

Have just found this forum while looking for help to complete form for ppi claim. It's heartening to read that people have received claims after having been missold imsurance. Do hope someone may be able to help with my query.
I took out loans in 2002,2003 and 2005. The fromer two were closed for each successive loan and I currently have about a year left to repay the loan.
I was told that I would not be able to take out a loan without protection but I can't recall whether this was in 2002 or 2005. I am anxious that I may be telling an untruth if I guess. I was in part time employment (teacher) in 2002 but in 2003 and 2005 was in full time employment with an LEA.
I don't want to give any misinformation but neither do I want to 'sell myself short' of any monies that may possibly be owing to me. The form I am filling in is a FOS PPI Consumer Questionnaire whatever that means.
Many thanks for any help or advice.

The piece I have highlighted is your biggest reason for a reclaim and being mis-sold as being a teacher if off sick you'd normally get 6 months full pay and 6 months half pay, am I correct? If so then you already had cover, if they didn't ask you if you had other means of paying if you were off sick or made unemployed, then this would be a reason for being mis-sold, have a look at the reclaim section and reasons for mis-sell to see if any apply.
Hope this helps:D

MR_G_1979

Thanks Smitchy.

As with everyone else, my balance has varied from zero to £5000 over the last few years, I'm pretty sure the interest rate on the card when I took it out was 9.99%, my current rate is 14.95% although the amount on the card is virtually nothing (£150). I really dont know whether to just accept and put the whole thing to bed or push it further as i have no real idea exactly what i've paid in.

skitter123

Thank you for your speedy reply smitchy 73. I would have had 75 working days at full pay and 75 working days at half pay in 2005.

smitchy73

MR_G_1979 wrote: »

Thanks Smitchy.

As with everyone else, my balance has varied from zero to £5000 over the last few years, I'm pretty sure the interest rate on the card when I took it out was 9.99%, my current rate is 14.95% although the amount on the card is virtually nothing (£150). I really dont know whether to just accept and put the whole thing to bed or push it further as i have no real idea exactly what i've paid in.

There is a couple of other people with more calulations expertise than me, but if you think the ppi premiums and big interest is about right the 8% would probably be fairly negligble, see what the likes of niggly can suggest.
Do you know roughly what the ppi premiums were each month from statements that you have?

smitchy73

skitter123 wrote: »

Thank you for your speedy reply smitchy 73. I would have had 75 working days at full pay and 75 working days at half pay in 2005.

No problem skitter, have you looked at the other reasons for mis-sell too, as this is only one of them, the chances were that you were mis-sold, here are some reasons from the FSA guidance, these are the reasons the bank should consider when looking at your complaint.

"3.6.2 E In the absence of evidence to the contrary, the [FONT=TimesNewRoman,Italic]firm [/FONT]should presume that the
complainant would not have bought the [FONT=TimesNewRoman,Italic]payment protection contract [/FONT]he bought if

the sale was substantially flawed, for example where the [FONT=TimesNewRoman,Italic]firm[/FONT]:

(1) pressured the complainant into purchasing the [FONT=TimesNewRoman,Italic]payment protection
contract[/FONT]; or
(2) did not disclose to the complainant, in good time before the sale was
concluded, and in a way that was fair, clear and not misleading, that the

[FONT=TimesNewRoman,Italic]

policy [/FONT]was optional; or
(3) made the sale without the complainant’s explicit agreement to purchase
the [FONT=TimesNewRoman,Italic]policy[/FONT]; or

(4) did not disclose to the complainant, in good time before the sale was
concluded, and in a way that was fair, clear and not misleading, the
significant exclusions and limitations, i.e. those that would tend to affect
the decisions of [FONT=TimesNewRoman,Italic]customers [/FONT]generally to buy the [FONT=TimesNewRoman,Italic]policy[/FONT]; or
(5) did not, for an advised sale (including where the [FONT=TimesNewRoman,Italic]firm g[/FONT]ave advice in a
non-advised sales process) take reasonable care to ensure that the [FONT=TimesNewRoman,Italic]policy

[/FONT]

was suitable for the complainant’s demands and needs taking into account
all relevant factors, including level of cover, cost, and relevant exclusions,
excesses, limitations and conditions; or
(6) did not take reasonable steps to ensure the complainant only bought a

[FONT=TimesNewRoman,Italic]

policy [/FONT]for which he was eligible to claim benefits; or
(7) found, while arranging the [FONT=TimesNewRoman,Italic]policy[/FONT], that parts of the cover did not apply but
did not disclose this to the [FONT=TimesNewRoman,Italic]customer[/FONT], in good time before the sale was
concluded, and in a way that was fair, clear and not misleading; or
(8) did not disclose to the complainant, in good time before the sale was
concluded, and in a way that was fair, clear and not misleading, the total
(not just monthly) cost of the [FONT=TimesNewRoman,Italic]policy [/FONT]separately from any other prices (or
the basis for calculating it so that the complainant could verify it); or
(9) recommended a single premium [FONT=TimesNewRoman,Italic]payment protection contract [/FONT]without
taking reasonable steps, where the [FONT=TimesNewRoman,Italic]policy [/FONT]did not have a pro-rata refund,
to establish whether there was a prospect that the complainant would
repay or refinance the loan before the end of the term; or
(10) provided misleading or inaccurate information about the [FONT=TimesNewRoman,Italic]policy [/FONT]to the
complainant; or
(11) sold the complainant a [FONT=TimesNewRoman,Italic]policy [/FONT]where the total cost of the [FONT=TimesNewRoman,Italic]policy [/FONT](including
any interest paid on the premium) would exceed the benefits payable
under the [FONT=TimesNewRoman,Italic]policy [/FONT](other than benefits payable under life cover); or
(12) in a sale of a single premium [FONT=TimesNewRoman,Italic]payment protection contract[/FONT], failed to
disclose to the complainant, in good time before the sale was concluded,
and in a way that was fair, clear and not misleading:
(a) that the premium would be added to the amount provided under the
credit agreement, that interest would be payable on the premium
and the amount of that interest; or
(b) (if applicable) that the term of the cover was shorter than the term
of the credit agreement and the consequences of that mismatch; or
(c) (if applicable) that the complainant would not receive a pro-rata
refund if the complainant were to repay or refinance the loan or
otherwise cancel the single premium [FONT=TimesNewRoman,Italic]policy [/FONT]after the cooling-off
period.

3.6.3 E Relevant evidence might include the complainant’s demands, needs and
intentions at the time of the sale and any other relevant evidence, including any
testimony by the complainant about his reasons at the time of the sale for

purchasing the [FONT=TimesNewRoman,Italic]payment protection contract.
[/FONT]

MR_G_1979

Not really, I remember seeing some for around £40 but that was when card was really high. i think most have bee £1.50 to £20 a month, the more I think about it, the more I think it's right. I'm gonna accept and take the cash.

smitchy73

MR_G_1979 wrote: »

Not really, I remember seeing some for around £40 but that was when card was really high. i think most have bee £1.50 to £20 a month, the more I think about it, the more I think it's right. I'm gonna accept and take the cash.

Congratulations on your success then MrG, spend wisely and enjoy it's been well deserved:j:j:j:D

MR_G_1979

Smitchy,

Is the 8% they pay, from the date of acceptance of the claim until the date they pay the money out ??? and if so, is that 8% APR or 8% of the total amount?

smitchy73

MR_G_1979 wrote: »

Smitchy,

Is the 8% they pay, from the date of acceptance of the claim until the date they pay the money out ??? and if so, is that 8% APR or 8% of the total amount?

Now you're asking!! there is a set way for them to do this, but I think it is 8% apr of the amount that they are awarding you, and it's from the date of the award until the date they expect you to be paid.:cool: