Should I be getting the interest paid on premiums back

ccmug

Following a single letter to Egg, I have today received a letter from them advising me of a refund and very nice is it too.I did however telephone them to enquire how the amount was arrived at and they informed me that it was the premiums plus the Statutory 8% interest.I've had the credit card for 6 years and the PPi was given free for 3 months but i told them from the start that i didn't want it. but hadn't noticed that the premium was being deducted until it blew my limit.as my card has been in a debit situation from day one I have been paying Eggs rate of interest on the premiums but they say it is not their policy to refund that.Is this a valid claim on my part and if so do i refer to the ombudsman

di3004

ccmug wrote: »

Following a single letter to Egg, I have today received a letter from them advising me of a refund and very nice is it too.I did however telephone them to enquire how the amount was arrived at and they informed me that it was the premiums plus the Statutory 8% interest.I've had the credit card for 6 years and the PPi was given free for 3 months but i told them from the start that i didn't want it. but hadn't noticed that the premium was being deducted until it blew my limit.as my card has been in a debit situation from day one I have been paying Eggs rate of interest on the premiums but they say it is not their policy to refund that.Is this a valid claim on my part and if so do i refer to the ombudsman

Hi there

I am not any good at calculations, but there are some superb posters on the site that know how these companies calculate, Marshallka and Turbo are the ones on this matter, but other than that I have some details on how my credit card refund was repaid to me, this was resolved through the FOS:
Read this here below, but if your not happy, you can of course take your complaint to the FOS, good luck.;)

Essentially the business should refund all PPI premiums you have paid, together with any interest payments you have made to the card while the premiums had been added to your card balance. It should also pay you interest at 8% on the sum, but please note the interest is 'simple' interest rather than 'compound' interest, which means the interest here is only calculated on the sums refunded, and you are not paid interest on interest. This is slightly different therefore to how interest is calculated on your bank current account.

ccmug

di3004 wrote: »

Essentially the business should refund all PPI premiums you have paid, together with any interest payments you have made to the card while the premiums had been added to your card balance.

Thanks Di

I believe that this substantiates my own reading of the situation. I think I will pop them off an e-mail first and then go to the FOS if I don't get satisfaction

di3004

ccmug wrote: »

Thanks Di

I believe that this substantiates my own reading of the situation. I think I will pop them off an e-mail first and then go to the FOS if I don't get satisfaction

Hi there

Yes do that and see what happens, I wish you luck.;)X

ccmug

I decided to speak to the FOS.

They are quite categorical that their recommendation to the financial businesses is refund of premiums and the 8% statutory interest.

So I accept that as case closed

Hipsysidecar

Not an expert, but isn't it 'compound interest' that they should be paying i.e. the interest is recalculated at the current rate against the value to which is it applied?

If that is the case then you may have more money to come.

Good luck!

Hipsy

Hipsysidecar

Hipsysidecar wrote: »

Not an expert, but isn't it 'compound interest' that they should be paying i.e. the interest is recalculated at the current rate against the value to which is it applied?

'Just read that back, not sure it makes sense!! I meant the interest is added on, then next time interest added on, it is added on to the balance that includes the previous interest.

I've done a 10-hour day at work today - my brain is mush!!

Hipsy