How to claim back interest on settled ppi

masiemay

Could you all please help me, I have managed to settle a PPI claim off the Bank of Scotland, but they have not paid me any interest on the cheque that I have reiceved. I have called them and I have been asked to write a letter stating the above. Could anyone please help me on how I should word this letter?? All I know is that I require my interest which I have paid (which is shown on my loan agreement) and also do I ask for annual interest???

Thanks for your help:beer:

marshallka

masiemay wrote: »

Could you all please help me, I have managed to settle a PPI claim off the Bank of Scotland, but they have not paid me any interest on the cheque that I have reiceved. I have called them and I have been asked to write a letter stating the above. Could anyone please help me on how I should word this letter?? All I know is that I require my interest which I have paid (which is shown on my loan agreement) and also do I ask for annual interest???

Thanks for your help:beer:

Hi, was this a goodwill gesture or did they admit misselling to you? Also is the loan still active or did you settle it early at all?

masiemay

They have admited that it was miselling and the loan was paid off earlier this year.

marshallka

masiemay wrote: »

They have admited that it was miselling and the loan was paid off earlier this year.

You would be best to ask for full breakdown of the calculations of the redress. It may be that at settling early you received a rebate against the insurance and the interest due on the insurance and this is why it seems lower than your premium total cost.

You can however ask that they award the 8% statutory interest on top of your redress as you were deprived of the money.

PaulinWeston

As Marshallka knows – this is a particular ‘hobby horse’ of mine... If they have admitted mis settling and you haven’t accepted a full & final settlement then you “could” argue that you are entitled to interest on the premiums at the same rate as on the loan, from the date(s) the payments made until settlement, because you would have otherwise used the money to repay the loan sooner.

This is what a court may allow you (the alternative is allow you a ‘statutory’ rate of 8%) under the County Courts Act 1981 section 69. Note however – that The FOS won’t accept this argument and only use the statutory rate.

As Marshallka says, if you think you have a valid claim on interest, then you should write and ask for it. You could point out that the county court may well award you interest at X% [the APR on the loan] and it is just and equitable that interest be repaid at this rate because the money paid would otherwise have gone towards discharging the indebtedness under the loan agreement, but to expedite an early settlement, you will agree to interest at the statutory rate of 8%

finatra26

Bank of Scotland seem to send out 2 cheques - 1 for the PPi & Contractural Interest & 1 for the statutory Interest (they did for me anyway)
When you phone don't speak to anyone but the claim handler named in your letter - the branches etc don't know what is going on
He/she will explain to you that the second cheque is calculated seperately so that it is as up to date interest wise as possible hopefully

SEVERNCYDER

PaulinWeston wrote: »

As Marshallka knows – this is a particular ‘hobby horse’ of mine... If they have admitted mis settling and you haven’t accepted a full & final settlement then you “could” argue that you are entitled to interest on the premiums at the same rate as on the loan, from the date(s) the payments made until settlement, because you would have otherwise used the money to repay the loan sooner.

This is what a court may allow you (the alternative is allow you a ‘statutory’ rate of 8%) under the County Courts Act 1981 section 69. Note however – that The FOS won’t accept this argument and only use the statutory rate.

As Marshallka says, if you think you have a valid claim on interest, then you should write and ask for it. You could point out that the county court may well award you interest at X% [the APR on the loan] and it is just and equitable that interest be repaid at this rate because the money paid would otherwise have gone towards discharging the indebtedness under the loan agreement, but to expedite an early settlement, you will agree to interest at the statutory rate of 8%

I accepted a "gesture of goodwill" offer from LloydsTSB of £817.56 in respect of PPI on a loan with them which i settled early in January 2004. The offer was made on 16/09/2009 and i posted the acceptance form back to them two days later. I then received a letter from LTSB dated 30/09/2009 stating that the £817.56 plus an interest adjustment would be credited to my account within 21 days.The same letter also confirmed that their offer was to refund the Loan Protection Insurance premium, plus an interest to date, as a gesture of goodwill.
The £817.56 was credited to my account on 05/10/2009. One week later on 12/10/2009 i began sending what turned out to be three e-mails to them asking if the missing interest was an oversight and could they let me know when i could expect to see the interest payment in my account ?.
I heard nothing until i received a letter dated 17/11/2009 advising me that their "refunds team" had decided that the letter i had received dated 30/09/2009 was incorrect in stating that interest would be paid !!!!.
I e-mailed them back yesterday to tell them i was absolutely appalled at their reply and that if i did not receive a more favourable response within 14 days i would forward my complaint to the FOS. They e-mailed me a reply yesterday reiterating that the offer of interest was a mistake and they were unable to pay it.
Are they legally within their rights to do this or am i able to quote some legal jargon to them to encourage them to change their minds ?.

PaulinWeston

SEVERNCYDER wrote: »

I accepted a "gesture of goodwill" offer from LloydsTSB of £817.56 in respect of PPI on a loan with them which i settled early in January 2004. The offer was made on 16/09/2009 and i posted the acceptance form back to them two days later.

I then received a letter from LTSB dated 30/09/2009 stating that the £817.56 plus an interest adjustment would be credited to my account within 21 days.The same letter also confirmed that their offer was to refund the Loan Protection Insurance premium, plus an interest to date, as a gesture of goodwill.

........I received a letter dated 17/11/2009 advising me that their "refunds team" had decided that the letter i had received dated 30/09/2009 was incorrect in stating that interest would be paid !!!!.

Are they legally within their rights to do this or am i able to quote some legal jargon to them to encourage them to change their minds ?.

It sounds (and don't quote me on this) that you "accepted" their initial offer of £817.56. I have a funny feeling that because you accepted this lower amount then that's all they are obliged to repay.