Companies in Default/FSCS Claims - Picture, London Scottish, Twopart

busbyh

netabc wrote: »

Letter from FSCS following deduction of NCD from cheque and then followup letter asking why. apologies if there are typos but was scanned in and left the magic of HP to work out the rest..:-)

****************************************************

Thank you for your recent letter, received at this office on 10 November 2009, about your claim for compensation against Picture Financial Services Plc (Picture).
I am sorry that you remain unhappy with the amount of compensation paid to you. As you may be aware, the Financial Services Compensation Scheme (FSCS) is a fund of last resort which deals with claims for compensation against firms that are no longer trading, and cannot honour their own claims. We must consider all claims, and calculate any compensation payable, in accordance with our rules as made by the Financial Services Authority (FSA), and our policies (as agreed by our Board of Directors). We cannot deviate from these rules, however much we may sympathise with the position of an individual investor. Our rules appear in the FSA Handbook under COMP and are available to be viewed at www.fsa.govuk.
Whilst I have noted the comments made in your letter, I do not feel that, at this stage, you have raised any additional issues that would lead the FSCS to consider reopening your claim, or conducting a further loss assessment. We are satisfied that the compensation cheque issued with our decision letter dated 30 October 2009, for £9,854.20, correctly represents the compensation to which you are due under our rules and policies.
I can also confirm that the methodology we have used in calculating your loss will not be amended. Therefore, as we have no reason to believe that there is an error in the calculation, our offer of compensation will not be increased.
I trust that the following clarification will correct any misunderstandings with respect to the loss calculation process.
The table contained within the decision letter confirms the various elements that are included for ill! claimants with eligible Payment Protection Insurance (PPI) claims against Picture. I would wish to take this opportunity to remind you that you have made your claim on the basis that the PPI policy was mis-sold to you. Accordingly, when carrying out a loss assessment for an eligible claim we have to include all of the payments you have made to Picture under the contract, and then subtract all of the payments you have received to the date of calculation. This is referred to as a "monies in/monies out" calculation, and is the standard basis used by the FSCS for calculating a claimant's loss in cases such as these.
As the policy was not appropriate for your circumstances at the outset we cannot ignore any payments that you received in line with the terms and conditions of the contract, such as a No Claims Bonus (NCB), or a rebate paid on cancellation or which would be due to you if you were to cancel the inappropriate contract. To not include the "benefits" you have received under any policy within our calculation would, in effect, mean that you have received a double benefit.
Consequently, we remain of the view that the calculation undertaken is a fair and reasonable approach to take when assessing the actual loss suffered as a result of taking out the PPI contract with Picture, and also achieves our aim of placing you back in the position you would have been if you had not received the bad advice. Accordingly, unless there is an error in the calculation itself, which we do not believe to be the case, we will not be able to consider amending the offer of compensation made to you.
As you will be aware this contract commenced 27 April 2005. We have received confirmation from Target Group Limited (Target) that you have received a total of £4,508.05 in NCB payments prior to the date of our loss calculation. Therefore, as our loss assessment was carried out on 27 October 2009, it was appropriate to include that amount within the calculation.
I can confirm that if you had not qualified for a NCB, we would have obtained the rebate amount you would have received upon immediate cancellation of the contract and included that figure within the calculation.
Any further questions that you may have about additional NCB amounts, which may fall due under the terms and conditions of your contract in year five, should be raised directly with Target.
I trust that the above has clarified the position and that you will now feel able to bank the cheque issued with our decision letter, for £9,854.20, in full and final settlement of your claim for compensation.
Should you have any further questions, please contact our helpline on 020 7892 7300, or freephone on 0800 678 1100, and we will be happy to be of assistance.[/QUOTE

IN depth reply netabc, what are your feeling towards this? NOt sure how to take the bit about 5th year NCB. Do you think you will still get this when it is due. also how much is the rebate worth if you were to cancel INS
How have others who have been paid NCB not had it deducted I wonder, unless it was just one, maybe an oversight.

Are they saying it's just unfortunate that you have rcd NCB prior to cancellation!!!!
I need to read this again!!!

What was the table rcd with the letter

netabc

thats how i read it,, i was lucky to get he ncd and thus its been deducted.. if i had missed my payments they mention that they would have given me the monies anyway which is crazy. i dont know what to think,, i guess im still entitled to final 5th year.

need to think on this,, wonder if barloo has his letter as that musthave gone in before mine..

hmmm anyone else trying the same to get the ncd back ?

busbyh

netabc wrote: »

thats how i read it,, i was lucky to get he ncd and thus its been deducted.. if i had missed my payments they mention that they would have given me the monies anyway which is crazy. i dont know what to think,, i guess im still entitled to final 5th year.

need to think on this,, wonder if barloo has his letter as that musthave gone in before mine..

hmmm anyone else trying the same to get the ncd back ?

So it looks like they are deducting one or the other. If you don't receive NCB, deduct rebate. If you receive NCB deduct that
If you have rcd a NCB will you still have the option to cancel policy!! HOw much would your final NCB be worth?

netabc

final ncd is due next yr as worth about £1700.. but no option to cancel policy in the docs i got back from them,

busbyh

netabc wrote: »

final ncd is due next yr as worth about £1700.. but no option to cancel policy in the docs i got back from them,

Well if you are able to cancel it, don't think you would get that much back for final year, do you? and I just wonder if you can cancel after receiving NCB,

I am unsure looking at the rebates FSCS have told other posters they would be entitled to upon cancellation,as to how they work it out, as we rcd nothing after 30months

busbyh

I do wonder how they will calculate those, like me who have paid off Picture.

Although I rcd no rebate upon cancellation, does anybody think they will deduct from cheque (if and when we receive it) what rebate I should have been entitled to, and leave it for us to argue the toss with the insurers.

pinknico

No busbyh, if you have not physically had the money they can't deduct it.


The letter does not explain why others can keep their NCB if they have not yet received it, that makes the payout bigger and they are implying this is unfair if the ones who have received it didnt have it deducted so where are they getting their reasoning?

busbyh

pinknico wrote: »

No busbyh, if you have not physically had the money they can't deduct it.


The letter does not explain why others can keep their NCB if they have not yet received it, that makes the payout bigger and they are implying this is unfair if the ones who have received it didnt have it deducted so where are they getting their reasoning?

Thanks pinknico, I did think that about mine, but then thought you just never know.

That's right, the letter does not explain about those not yet in receipt on NCB, I just don't understand it.

I wonder if netabc covered this in his letter. I would give them a call and put this to them.

busbyh

Just thinking, those who have rcd payment, had the rebate amount that they would be entitled (but not actually rcd) deducted from their calculation and told to claim back off Insurers if they choose to cancel

busbyh

netabc, pinknico is right what she says in her post, I would contact them just to ask why. It does say in the letter to contact them if need be.