How FOS Calculate Refunds

tarallo

Good morning. I would like some help please; the FSO has upheld a case against RBS for a credit card PPI, which they initially declined. The letter from the FSO to the business says.....to put Mr xxx back in the position he would have been in if he had not taken out the PPI policy...When I was dealing direct with RBS I requested a figure of all the insurance amounts I had paid. This is £2164.68; account and PPI are closed. What figure should I expect as a refund? Many thanks.

-taff

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

tarallo

Thank you. What I needed to know is: will the premiums paid be refunded, in addition to re-creating an account and calculating the balance, etc etc?

amersall

You will get what you paid and the 8%, when the card is set to a zero balance. any month that you had a credit balance you do not get the 8% for,see what figure they offer you.

ktracer

I wrote to Abbey Life recently. I took out a life insurance policy 20-odd years ago & it should have had a lump sum with it, but it wasn't worth anything.
They suggest I should have been sold a straight death policy for a 10-year period, not what I was sold. So they have offered me:
1) All of my premiums back since the 10-year period expired plus 8% interest
2) A refund of the difference between what I would have paid with the 'correct' policy & what I paid plus 8% interest for a 10-year preiod, less 20% tax

The bottom line is they have offered me 20% more than I paid out.
They obviously feel they would lose the case, and I have 1 month to accept, otherwise they will withdraw the offer.
I think it's a reasonable offer & I might not get more.
Any comments?

Nearlyold

What they are saying is that you should have been sold a 10 year level term policy to cover your original life cover need, which would have been cheaper, and that you had no particular need for cover beyond the 10 years. Abbey Life did introduce a level term policy around 1998-1999 but this was after you were sold your policy. I assume you were sold a "Covermaster" policy which was Abbey Life's flexible unit linked Whole of Life Plan probably on Maximum cover.

Their offer puts you in the position you would have been if you had been sold a level term plan in the first place and is precisely in line with what I would expect the Financial Ombudsman to award if you took your complaint to them.

dunstonh

They obviously feel they would lose the case, and I have 1 month to accept, otherwise they will withdraw the offer.

Its not a case of that. They have decided that the ten year term was more suitable and they are offering the difference and 8% interest in line with FOS guidance. However, they have also given you the option of using an alternative method.

I think it's a reasonable offer & I might not get more.

Their response outcome fits your complaint and is in line with expectation.

Bagdog

Hi all
I've recently had the good news that hsbc will uphold my claim for my credit card PPI.

I'm trying to work out what the offer will be (roughly) as I've tried a few online calculations and I'm getting massive differences.

I'll round everything down to be safe, but if someone could give me a rough figure, then I'll know if the offer is reasonable....

Had card 12 years
Had ppi from day 1
Card still active
Had 5300 pretty much on it all the time.
Ppi was around 38 quid a month
(72p in every 100) i think or there abouts.

Any rough ideas or ball park figures would be appreciated.
Cheers muchly

Nasqueron

Bagdog wrote: »

Hi all
I've recently had the good news that hsbc will uphold my claim for my credit card PPI.

I'm trying to work out what the offer will be (roughly) as I've tried a few online calculations and I'm getting massive differences.

I'll round everything down to be safe, but if someone could give me a rough figure, then I'll know if the offer is reasonable....

Had card 12 years
Had ppi from day 1
Card still active
Had 5300 pretty much on it all the time.
Ppi was around 38 quid a month
(72p in every 100) i think or there abouts.

Any rough ideas or ball park figures would be appreciated.
Cheers muchly

I can't assist with the calculations but PPI refunds are not an "offer" or something you haggle over, you have a defined refund method:

Refund of PPI premiums
Associated interest
8% simple interest on the refund

The bank will pay based on the figures they have, if the account is still active and they have all the records they will send you a figure, you either accept it or throw away the cheque, they will not give you more based on some calculation on a forum

Bagdog

Thanks for the response, no worries i just wondered if someone could give me a rough idea of what to expect 😊