A&L ppi reclaim offer but have I been shortchanged?

King_Juan

Hi everyone,

I'm new to the forum but have been finding it very useful supporting my ppi claim to A&L having received a letter from them about the matter a few weeks back.

Basically, I was missold ppi on a loan which I paid back early just 11 months into a 5 year term. The ppi was charged in a single premium plus interest and added to the loan balance at the start - £3009.54 plus £663.06 interest. When I repaid the loan I was offered an insurance rebate of £2014.58. The rebate was calculated disproportionally to the remaining term.

I have been made an offer refunding all the payments I paid on the insurance plus a rebate adjustment as if the rebate had been calculated proportionally. Plus 8% interest on this value. They have still kept some of the premium.

My opinion is that as the PPI was mis-sold (pressurised into taking the insurance, not given full info or enquired about my circumstances etc) then I should be entitled to a full refund of the money paid for the insurance. Their letter pretty much states that they cannot establish whether I was provided with enough info to make an informed decision about the insurance.

In summary I think I should be entitled to:

i.e. SAmount paid for insurance 3672.60 - rebate received 2014.58 = £1658.02 plus 8% interest PA since the insurance was purchased.

Can anybody offer me some advice on whether I am right to challenge A&L on their offer or whether I should accept the offer. What is a fair refund value? I dont want to jepordise my position with this.

Thanks for any advice in advance!

di3004

King_Juan wrote: »

Hi everyone,

I'm new to the forum but have been finding it very useful supporting my ppi claim to A&L having received a letter from them about the matter a few weeks back.

Basically, I was missold ppi on a loan which I paid back early just 11 months into a 5 year term. The ppi was charged in a single premium plus interest and added to the loan balance at the start - £3009.54 plus £663.06 interest. When I repaid the loan I was offered an insurance rebate of £2014.58. The rebate was calculated disproportionally to the remaining term.

I have been made an offer refunding all the payments I paid on the insurance plus a rebate adjustment as if the rebate had been calculated proportionally. Plus 8% interest on this value. They have still kept some of the premium.

My opinion is that as the PPI was mis-sold (pressurised into taking the insurance, not given full info or enquired about my circumstances etc) then I should be entitled to a full refund of the money paid for the insurance. Their letter pretty much states that they cannot establish whether I was provided with enough info to make an informed decision about the insurance.

In summary I think I should be entitled to:

i.e. SAmount paid for insurance 3672.60 - rebate received 2014.58 = £1658.02 plus 8% interest PA since the insurance was purchased.

Can anybody offer me some advice on whether I am right to challenge A&L on their offer or whether I should accept the offer. What is a fair refund value? I dont want to jepordise my position with this.

Thanks for any advice in advance!

Hi there and welcome.;)

I would ring them hun and ask them to send you a thorough explanation of the calculations, you can always post them then on the above reclaiming discussion thread where I am sure someone will take a look at them for you to make sure your getting back what you should be receiving back.

When you have settled a loan, in regards of reclaiming this back, they should aim to put you back in the position as if you did not take out PPI, plus contractual interest and 8% interest of what a court would award, I am hoping someone will post on here to clarify this for us.

But by requesting them to send you a breakdown of the figures through the post, post them up on the suggested thread and they will be looked at.

Hope this is of some help hun.;) X

King_Juan

Hi Di, thanks for the reply!

I've drafted out my second letter to them requesting a refund of the full premium.

They have only offered me a portion of the premium as a refund because failure to identify what would be refunded if the loan was settled early was recognised as an issue. But in general, failure to provide sufficient information to make a decision at point of sale plus high pressure sales techniques should warrant a full refund of premiums as had it not have been for these, I would not have taken the insurance in the first place.

I feel A&L are trying to reduce the cost of their potential refund in this case.

I figure that I have nothing to loose in challenging the offer (which stands for 28 days). I would be happy with a refund as indicated above plus 8% statutory interest PA.

Can anybody indicate to me how the %8 interest is applied to a refund value? Is it as simple as refund value x 1.08 x 1.08 etc for x number of years since you paid the premium??

Cheers,