Ppi goodwill offer

scousejay

Just received a letter from royal bank of scotland for a loan I had. They have offered me £580.34. They admit I was not aware the ppi policy added to loan & terms & conditions were never explained. Should I accept or what action should I take. Hope you can help.
Jay.

di3004

scousejay wrote: »

Just received a letter from royal bank of scotland for a loan I had. They have offered me £580.34. They admit I was not aware the ppi policy added to loan & terms & conditions were never explained. Should I accept or what action should I take. Hope you can help.
Jay.

Hi Jay and welcome

Do you know how much PPI you have paid into the account?
What they offer may depend on that.

For example, if they admitted liability, they will uphold in your favour and refund you all you paid in ppi, plus interest.

If its just an offer, they can offer what they think is reasonable, and may not actually admit liability of the policy being mis sold.
So basically if that is the full offer and they accepted liability, I assume this is what you have paid to date and this is what your due, did they say interest was included or mention anything about interest?

dunstonh

Goodwill payments typically end up being less than £500 and round figures. A figure of £580.34 sounds like a proper calculation has been done.

scousejay

From what I can remem it was around 2005 when I cancelled this loan, I took another 1 out to repay other stuff, that claim is going through to so will let you know what they offer on that when get letter.
This is what they say,
The offer
The bank is prepared to refund the insurance premiums and intrest that you have paid to 11may2005. This excludes the amount automatically credited to your loan account of £862.54 when the policy was cancelled. Out calculations show that you have paid a total of £580.34 for the payment protection element of your loan.
Hope that helps you abit, it's says can refer it to financial ombudsman service, never heard of that what is it?
Thanks again for the replys & hope use can help me out
Thanks Jay

dunstonh

it's says can refer it to financial ombudsman service, never heard of that what is it?

For people that lose their complaints and feel that the response is still wrong. They are an independent assessor of complaints. However, you won your complaint and the have got redress for it. So, there is no point referring it to the FOS.

scousejay

So do I accept there offer? This all new to me!!
Thanks Jay

cria28

Hi Jay
I had 2 offers from natwest/RBS last week with the same wording as yours - somebody on here checked the calculations and they appeared to be correct so I accepted!
Cath

scousejay

Just been looking at other people on the forum, some are not accepting the 1st pay out. Sending it to the fos, would I get more or should I b happy with what rbs have offered me.
Thanks again for all the help.
Jay

cria28

If you post your figures on here I am sure somebody will check the calculations, I am hopeless with th ecalculations and was happy to take advice from the experts on MSE forums! They did with mine and i then accepted the offer.
Cath

dunstonh

scousejay wrote: »

Just been looking at other people on the forum, some are not accepting the 1st pay out. Sending it to the fos, would I get more or should I b happy with what rbs have offered me.
Thanks again for all the help.
Jay

If they had offered just a goodwill only payout of say exactly £200 then you could push for more. If they have done a calculation using a defined method then you are getting what you are entitled to.

Of course, you can refuse to accept it and then wait 12 months or so for the FOS to turn around and tell you that the offer they made was correct.

So, is it a defined calculation or goodwill payment? (sounds defined from the figures involved)

scousejay

Showed the offer before heres the decision
On this occasion I have been unable to confirm precisely what information you were given at time you purchased the policy. In the circumstance , as a gesture if goodwill & without any admission of liability , the bank is prepared to make you the offer detailed.
I posted offer earlier on.
Thanks Jay