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dazed_and_confused_3

Good news!

Sent a stage one letter to Halifax a few weeks ago about PPI on a credit card & had a letter back today saying they will “pay me an amount which will put me back in the position I would have been had I not taken the insurance.”

Obviously I’m delighted & would like to thank anyone who offered advice & encouragement along the way - especially marshallka & di3004. Genuinely really appreciate it! :cool:

My only issue now is that the letter says “where your account remains open the redress will be paid directly on to the card account.” As my credit card account is still open this obviously applies to me, but if they pay it directly back to the card (ie reducing/clearing the remaining debt) will I get a chance to accept or decline the amount they offer before they do so?

I have the vast majority of my statements going as far back as 2003 so I know roughly how much I am due (including interest). My concern is that they pay back an amount that I am unhappy with & then try to say I have somehow accepted it if I do something like make a payment towards the card. I seem to remember reading on here about something similar happening to someone before.

My next payment is due around the same time (next 5 days) that Halifax’s “redress team” is due to “complete their calculation” & repay me. Meaning I will either have to make a payment & risk being seen to have accepted their offer of redress, or not make a payment until I am satisfied & be charged a late fee.

Any advice greatly appreciated & thanks again. :beer:

di3004

Hi there, well done and Congratulations.:beer::T:j

And your very welcome.

If you've no arrears (missed payments) then I'm sure you can write to request that you prefer to have the refund paid directly to you, afterall you were out of pocket in the first place down to this.


Also if this was not an offer and they "upheld" in your favour they should to what I am aware of calculate the same way as the FOS, check Maxdp's thread on how the FOS calculates refunds:
http://forums.moneysavingexpert.com/showthread.html?t=1596473

If you want it refunded directly to you then give them a quick ring and send a letter to reach them for as soon as possible, post by recorded delivery by first class and it should reach them the following day.

However, although it will help reduce the balance, you should to what I am also aware of benefit yourself by receiving the simple interest etc, maybe someone can clarify on this one.

Good luck with this.;)

marshallka

dazed_and_confused wrote: »

Good news!

Sent a stage one letter to Halifax a few weeks ago about PPI on a credit card & had a letter back today saying they will “pay me an amount which will put me back in the position I would have been had I not taken the insurance.”

Obviously I’m delighted & would like to thank anyone who offered advice & encouragement along the way - especially marshallka & di3004. Genuinely really appreciate it! :cool:

My only issue now is that the letter says “where your account remains open the redress will be paid directly on to the card account.” As my credit card account is still open this obviously applies to me, but if they pay it directly back to the card (ie reducing/clearing the remaining debt) will I get a chance to accept or decline the amount they offer before they do so?

I have the vast majority of my statements going as far back as 2003 so I know roughly how much I am due (including interest). My concern is that they pay back an amount that I am unhappy with & then try to say I have somehow accepted it if I do something like make a payment towards the card. I seem to remember reading on here about something similar happening to someone before.

My next payment is due around the same time (next 5 days) that Halifax’s “redress team” is due to “complete their calculation” & repay me. Meaning I will either have to make a payment & risk being seen to have accepted their offer of redress, or not make a payment until I am satisfied & be charged a late fee.

Any advice greatly appreciated & thanks again. :beer:

Hi, glad you won and as regards them paying to the card account if there are no arrears or have ever been any arrears then you should be given the option really to have the money paid direct to you. If you are happy to get rid of the debt that is fine though.

You can ask them for a complete breakdown of the calculations of how they are redressing and also make sure the 8% statutory interest has been added to each payment too. I would make your payments as per agreement though just in case they do charge a late payment fee and also then you have a record for being in arrears but if you think their redress is wrong they do have a duty to treat you fairly (as per the FSA) so you can then ask that this be looked into after. You have no option than to accept at this stage really and even with FOS involvement you sometimes have to accept before knowing amounts.

Well done.

dazed_and_confused_3

Hi di,

This is an ‘offer’ (“without admission of liability”) from Halifax. All I sent was the stage one letter & they’ve come straight back to me with this letter.

The amount I’m due should all but clear the debt on the card. Think there will still be a small amount left but I’ll be able to pay that off in no time.

As far as I’m aware I am entitled to be refunded for the initial PPI charges plus the interest charged on those amounts (averaging between 18-23%APR in my case). The 8% simple interest only comes into effect if & when at any point my balance would have been in credit had it not been for the PPI charges/interest, and that 8% is applied to whatever that credit balance would have amounted to. Is that correct?

I am assuming I am not due the 8% simple interest for periods when my balance would still have been in debt regardless of the PPI charges/interest?

I will definitely be calling them & sending a letter recorded delivery asap to request they send me the money rather than it being paid directly to the card. I’ll still use it to pay off the remaining debt immediately anyway, the issue for me is mainly just ensuring that they live up to their word of putting me back in to a position I would have been had the PPI never been applied in the first place.

Regards
[not quite so] dazed_and_confused :cool:

dazed_and_confused_3

Thanks Marshallka, that's cleared up some of my queries in both my original post & the last one. Cheers to you both. :beer:

robbedofmymoney

dazed_and_confused wrote: »

Good news!

Sent a stage one letter to Halifax a few weeks ago about PPI on a credit card & had a letter back today saying they will “pay me an amount which will put me back in the position I would have been had I not taken the insurance.”

Obviously I’m delighted & would like to thank anyone who offered advice & encouragement along the way - especially marshallka & di3004. Genuinely really appreciate it! :cool:

My only issue now is that the letter says “where your account remains open the redress will be paid directly on to the card account.” As my credit card account is still open this obviously applies to me, but if they pay it directly back to the card (ie reducing/clearing the remaining debt) will I get a chance to accept or decline the amount they offer before they do so?

I have the vast majority of my statements going as far back as 2003 so I know roughly how much I am due (including interest). My concern is that they pay back an amount that I am unhappy with & then try to say I have somehow accepted it if I do something like make a payment towards the card. I seem to remember reading on here about something similar happening to someone before.

My next payment is due around the same time (next 5 days) that Halifax’s “redress team” is due to “complete their calculation” & repay me. Meaning I will either have to make a payment & risk being seen to have accepted their offer of redress, or not make a payment until I am satisfied & be charged a late fee.

Any advice greatly appreciated & thanks again. :beer:

great result, :beer:

Lauzxx

Hiya

Was just going to add....if you want the compensation paid directly to you then call them and say and they will. I did that this morning and they said they'll be sending out a cheque with the full amount and in the meantime im to continue with payments to the debt people.

Its worth a try!

dazed_and_confused_3

Thanks Robbed… & Lauz :cool:

If they send a cheque would me cashing the cheque be seen as me accepting their offer, though? In other words if they sent a cheque for significantly less than I am owed would I have to not cash that cheque in order to still be able to take the matter further, either with the bank or the FOS?

marshallka

dazed_and_confused wrote: »

Thanks Robbed… & Lauz :cool:

If they send a cheque would me cashing the cheque be seen as me accepting their offer, though? In other words if they sent a cheque for significantly less than I am owed would I have to not cash that cheque in order to still be able to take the matter further, either with the bank or the FOS?

Hi dazed and confused, if you are sent a cheque that is considerably lower than you expect for this redress then I personally would not cash it and to get the breakdown and argue your points in the meantime. As this offer was without admitting liability it may be that they will not give in but you can take this to FOS and get the full amount as they would not be offering for nothing I would say but it is your call on this. You probably need to argue a little more to get the full amounts due.

dazed_and_confused_3

marshallka wrote: »

Hi dazed and confused, if you are sent a cheque that is considerably lower than you expect for this redress then I personally would not cash it and to get the breakdown and argue your points in the meantime. As this offer was without admitting liability it may be that they will not give in but you can take this to FOS and get the full amount as they would not be offering for nothing I would say but it is your call on this. You probably need to argue a little more to get the full amounts due.

Thanks. They did say they would be issuing a separate letter "providing further details of the calculation & the amounts payable." And seeing as they have said they will pay an amount to put me in a position as if the PPI had never been added, not to mention the fact I have the statements in my posession to know how much I am due I dont see how they could get away with "underpaying" me so to speak. But I'm naturally wary.

dazed_and_confused_3

Quick update...

Halifax have sent me a cheque payable to my CC account but it is for less than half what I believe I am due. They have also so far failed to provide the details of how they calculated this figure. I will be sending the letter below to them tomorrow in response. Would really appreciate it if anyone could have a quick look & offer their feedback on it? :cool:

Dear Sir or Madam,

I refer to your recent letter (reference: ******) in response to my complaint regarding the Payment Protection Insurance on my Halifax credit card.

First, I would like to thank you for the promptness of your initial response and for stating your intention to put me back in the position I would have been had the insurance not been applied in the first place.

However, in the letter I was told that your redress team would complete their calculation within 5 days and also provide further details of the calculation and the amounts payable. That letter was dated 08/04/10 and as of today (19/04/10), while I have received a cheque for £634.60 (dated 14/04/0), I am yet to receive any details clarifying how Halifax has concluded this amount is the appropriate settlement figure.

I have the vast majority of my statements for the credit card in question and using the PPI charges listed on these, plus the relevant compound interest rates applied each month (also listed on the statements), and adding the 8% statutory interest that a court would award, I believe that £634.60 falls significantly short of an amount that would put me back in the position I would have been had the insurance not been applied.

I believe £1532.36 to be the minimum amount that would put me back in such a position. I believe this in itself to be a conservative calculation as it is only based on those charges for which I have the corresponding statement & the necessary information to determine the relevant total. If the months which I don’t have statements for were also taken into consideration this figure could be higher. Also, the interest that I have applied to reach this amount has thus far only been applied up until the 14/04/10, rather than whatever date in the future that the remaining payment I believe is due may or may not be made.

I would therefore be willing to accept, without prejudice, an offer of £1532.36 to put me back in the position I would have been had the insurance not been applied, and would consider the matter closed. If I have not received a written response from you within 14 days to say if you can offer this amount I shall be taking my complaint to the Financial Ombudsman, as under the guidelines of the FSA I believe Halifax has a duty to treat its customers fairly.

Yours Faithfully...

Cheers again for everyone's help. :beer: