PPI Reclaiming Discussion part 4

smitchy73

beverleykim wrote: »

Hi All

Sorry to bump my own post, but I really could do with some advice with regard to accepting the above offer or not. I either accept (but feel the interest is too low) or I have to decline their offer and go to the FOS and could then lose the offer?

Thank you.

Bev

Hi Bev,

Is the refund of premiums including card interest at the card's rate as well, if not I'd be going back to them and asking about the compound interest charged at the card's rate, perhaps a phone call or an email would be sufficient to do this, at the moment I don't think you need to refuse their offer just yet.

You should be returned to the position you would've been in if you hadn't been given the ppi, it is a long and complicated way to work out refunds on credit cards.

The 8% interest is only refunded when after refunding the ppi charges and associated interest puts your account into credit.

The big one to be concerned about is if you are having the interest charged at the prevailing card rate has been refunded. Find that out first before rejecting or going to FOS.

Faragher1

di3004 wrote: »

Hi there

Well done!:beer:

How did they word the letter? was it a goodwill offer or did they say it was upheld and they will calculate inline with the FOS guidelines?

Thanks for the reply - it does not mention in the letter that this is a goodwill gesture. The letter says "on this occasion we are prepared to uphold your complaint and outline how I intend to resolve the matter. In view of my findings, to ensure that this matter has not financially disadvantaged you I propose to offer the amount of £5061.34. This figure will effectively return the protection premiums you have paid." Included in the offer is is 8% gross interest.
I'm tempted to accept this and then push for a refund of the debit interest and bank charges when we get back the mortgage PPI as it was even more than this! I truly believe that HSBC were trying to fleece us in every possible way and tip us over the edge so we lost our house. The advisor made us sign up to 6 insurance policies on our mortgage, the irony being that we discovered that if one of us had fallen gravely ill or died in an accident the mortgage still wouldn't have been paid off!

Niggly_2

beverleykim wrote: »

Lloyds TSB Offer

Hi all, have been away recently, so catching up on posts. Really pleased to see so many successes.

My offer from Lloyds arrived today - it was for a credit card, but I am unhappy with the figures quoted and would like some advice please. I rang them this morning and said that I thought they had made a mistake with regard to the interest, and they said if not happy it would have to go through to the FOS which obviously will take quite a time, so please can you have a look at the figures and let me know what you think?

Refund of premiums = £5,714.72
Refund of interest at 8% = £63.44
Interest at 8%, calculated up until October 2011 = £38.10

Total = £5,816.26

The credit card is still running with a high balance but the PPI only run from September 2004 until I cancelled it in May 2006, so no PPI since 2006.

Interest seems extremely low, don't you agree?

Bev

Its not easy to comment on this with out the full financial details. However we do know on credit cards that calculation of refunds are complicated. Basically the firm will look at the account and say waht would have been the effect on the account if the PPI had not existed.

In your case you had PPI for around 21 months. I am pretty sure that you wouldnt have paid £272 per month to PPI. This is the refund of premiums divided by the number of months held.

So I would be confident that the £5714 would actually include interest paid at the card rate.

When it comes to the 8% the FOS say the firm should only pay this when the card is in credit rather than with a balance on it. This may explain why the 8 % is so low.

Considering the PPI existed less than 2 years and depending on how much you paid in PPI over that period I would say it looked fairly reasonable.

N:beer:

beverleykim

Niggly wrote: »

Its not easy to comment on this with out the full financial details. However we do know on credit cards that calculation of refunds are complicated. Basically the firm will look at the account and say waht would have been the effect on the account if the PPI had not existed.

In your case you had PPI for around 21 months. I am pretty sure that you wouldnt have paid £272 per month to PPI. This is the refund of premiums divided by the number of months held.

So I would be confident that the £5714 would actually include interest paid at the card rate.

When it comes to the 8% the FOS say the firm should only pay this when the card is in credit rather than with a balance on it. This may explain why the 8 % is so low.

Considering the PPI existed less than 2 years and depending on how much you paid in PPI over that period I would say it looked fairly reasonable.

N:beer:

Thank you for your explanations, will accept the offer now as you have explained it to me. Thank you for your time and expertise.

Bev

cappo

beverleykim wrote: »

Hi All

Sorry to bump my own post, but I really could do with some advice with regard to accepting the above offer or not. I either accept (but feel the interest is too low) or I have to decline their offer and go to the FOS and could then lose the offer?

Thank you.

Bev

Hi beverley
you could just go back to the bank and tell them you think the offer is too low and ask for them to reconsider i have done something similiar with HSBC

cappo

smitchy73 wrote: »

cappo my friend, i'm doing fine, just milling away on here, back to work and feeling alot better, apart from being awake at stupid hours on a saturday morning.

How you doing?:D

Fine mate, still battling LTSB

cappo

Hi guys anyone got diamonds email addy please

di3004

Steve/Cappo

I have won my Hamilton case honey :beer: more on the success thread with a link leading to my thread, the lender admitted it was them that sold it.:beer: I ended up resolving this and not the FOS.:T

Email addy below x;)

http://www.!!!!!!/sm.php?em=robert.diamond*barclaysplc.com

di3004

Faragher1 wrote: »

Thanks for the reply - it does not mention in the letter that this is a goodwill gesture. The letter says "on this occasion we are prepared to uphold your complaint and outline how I intend to resolve the matter. In view of my findings, to ensure that this matter has not financially disadvantaged you I propose to offer the amount of £5061.34. This figure will effectively return the protection premiums you have paid." Included in the offer is is 8% gross interest.
I'm tempted to accept this and then push for a refund of the debit interest and bank charges when we get back the mortgage PPI as it was even more than this! I truly believe that HSBC were trying to fleece us in every possible way and tip us over the edge so we lost our house. The advisor made us sign up to 6 insurance policies on our mortgage, the irony being that we discovered that if one of us had fallen gravely ill or died in an accident the mortgage still wouldn't have been paid off!

Hiya

If they have upheld it then thats even better news, this means they agree with you and its as far as it goes, well done!:beer:

sunny8_2

di3004 wrote: »

Steve/Cappo

I have won my Hamilton case honey :beer: more on the success thread with a link leading to my thread, the lender admitted it was them that sold it.:beer: I ended up resolving this and not the FOS.:T

Email addy below x;)

http://www.!!!!!!/sm.php?em=robert.diamond*barclaysplc.com

YYYEEEYYYY!!! Well done lovely!!!:j:j:j:j

SOOOOOOOOOOOOOOOO pleased for you Di :T:T:T:Txx