Black Horse ex-gratia offer letter

NorbertBroadsword

Hello all,
Like many we've been mis-sold PPI by Black Horse. It is astonishing that we were sold this product when it would have not paid out anyway due to medical and employment reasons. All the agreements were settled early.
Anyhow, Black Horse had put our claim on hold pending the judicial review. Today we received two letters from them which read :-

"Thank you for your patience since you sent us your complaint regarding youur PPI Policy.

We have received a large number of complaints regarding PPI in recent months... To deal with your case more quickly we have decided to make you an ex-gratia offer to bring this matter to a speedy conclusion. We will ensure that you are put back to the same position you would have been in, had the single premium PPI not been included with your loan"

I am immediately made suspicious by the phrase "speedy conclusion"!

They then discuss the redress to us. In summary :-

We will calculate how much we would have paid had we not taken out PPI and refund the difference between that and the actual amount we paid. The refund will cover both the amount paid within the monthly installments (which includes the monthly added interest paid on the cost of the policy) and within the early settlement figure.

Statutory interest at 8% simple on each payment made towards the cost of the policy.

No deduction will be made by them as this is a compensation payment.

There is the usual stuff about this offer being in line with guidance provided by the FOS.

They say that they will not be able to provide a redress figure until we have accepted this offer. Is that normal?

The thing that I am wary about is this statement :-

"We Mr. & Mrs Blah, confirm that we accept the offer detailed above in full and final settlement of all issues raised with regards to the sale of the payment protection policy. We understand that if this offer is accepted, the agreement will no longer benefit from the cover provided by the policy"

Does this mean that we are signing our rights away to tackle them on any other agreements that we might have in dispute. There are currently three agreements that we are arguing with them about and two copies of this letter arrived today covering two of the agreements in dispute.

Am I being paranoid or have we actually got a result here!

Thanks for your advice.

di3004

NorbertBroadsword wrote: »

Hello all,
Like many we've been mis-sold PPI by Black Horse. It is astonishing that we were sold this product when it would have not paid out anyway due to medical and employment reasons. All the agreements were settled early.
Anyhow, Black Horse had put our claim on hold pending the judicial review. Today we received two letters from them which read :-

"Thank you for your patience since you sent us your complaint regarding youur PPI Policy.

We have received a large number of complaints regarding PPI in recent months... To deal with your case more quickly we have decided to make you an ex-gratia offer to bring this matter to a speedy conclusion. We will ensure that you are put back to the same position you would have been in, had the single premium PPI not been included with your loan"

I am immediately made suspicious by the phrase "speedy conclusion"!

They then discuss the redress to us. In summary :-

We will calculate how much we would have paid had we not taken out PPI and refund the difference between that and the actual amount we paid. The refund will cover both the amount paid within the monthly installments (which includes the monthly added interest paid on the cost of the policy) and within the early settlement figure.

Statutory interest at 8% simple on each payment made towards the cost of the policy.

No deduction will be made by them as this is a compensation payment.

There is the usual stuff about this offer being in line with guidance provided by the FOS.

They say that they will not be able to provide a redress figure until we have accepted this offer. Is that normal?

The thing that I am wary about is this statement :-

"We Mr. & Mrs Blah, confirm that we accept the offer detailed above in full and final settlement of all issues raised with regards to the sale of the payment protection policy. We understand that if this offer is accepted, the agreement will no longer benefit from the cover provided by the policy"

Does this mean that we are signing our rights away to tackle them on any other agreements that we might have in dispute. There are currently three agreements that we are arguing with them about and two copies of this letter arrived today covering two of the agreements in dispute.

Am I being paranoid or have we actually got a result here!

Thanks for your advice.

Hi there
Well done on your success.:beer:

It seems they are putting you back in the position as if PPI was not taken out, plus refunding interest etc.
This is normal if they have also accepted liability and it seems they have also confirmed they are calculating inline with the FOS.

There is a link below posted by Maxdp on how the FOS calculates ppi refunds, so it may be worth you having a read on there too.
http://forums.moneysavingexpert.com/showthread.php?t=1596473

They no not always send a breakdown the same time as the acceptance letter, but explain how they are going to calculate, like it have done on your letter it seems.

To my knowledge this should not intervene with other separate accounts, but maybe others on here will clarify on this, but I take it they actually mean on that account only.
So basically if you were still paying cover for this account, they see it now you have no further need for it, which is why they are also refunding you.

Please if you want to wait for other opinions on this, all the best and again well done!:beer: