Tesco CC- Is this a success or not?

End_of_tether_2

Hi everyone, I think I have had some success but just want to double check some figures.
I have a Tesco credit card which had PPI added to it and I was not aware of this, I know daft isn’t it. However I contacted Tesco and they have agreed to refund the money and the 8% interest I requested.

The settlement letter has come through today with the following statement and figures;
“Your refund will be all of the monthly Payment Protection Insurance premiums you have paid, up to the cancellation of the policy, along with interest on these payment.
Interest is paid at the card purchase interest rate. Or where you have had a negative balance (this means your account is in credit), to compensate you for not having this money you will receive interest at 8% on that amount;
PPI Premiums Paid - £609.74
Interest at card rate - £255.33
Interest at 8% - £6.08
Total - £871.15”

My question is does this seem reasonable as I can not work out what the two interest values are. The card was taken out in 2005 so I would have thought having been paying this “insurance” since then 8% interest would have been more than £6.08??

Cheers for any advice.

di3004

End_of_tether wrote: »

Hi everyone, I think I have had some success but just want to double check some figures.
I have a Tesco credit card which had PPI added to it and I was not aware of this, I know daft isn’t it. However I contacted Tesco and they have agreed to refund the money and the 8% interest I requested.

The settlement letter has come through today with the following statement and figures;
“Your refund will be all of the monthly Payment Protection Insurance premiums you have paid, up to the cancellation of the policy, along with interest on these payment.
Interest is paid at the card purchase interest rate. Or where you have had a negative balance (this means your account is in credit), to compensate you for not having this money you will receive interest at 8% on that amount;
PPI Premiums Paid - £609.74
Interest at card rate - £255.33
Interest at 8% - £6.08
Total - £871.15”

My question is does this seem reasonable as I can not work out what the two interest values are. The card was taken out in 2005 so I would have thought having been paying this “insurance” since then 8% interest would have been more than £6.08??

Cheers for any advice.

Well done on your success!:beer:

Hopefully someone will be along to check the calcs out for you soon, sorry I'm not good at that sort of thing.:o;)

End_of_tether_2

Thanks di3004,

Lets hope the complaint against my halifax loan PPI goes as well.

Sometimes could kick myself for not being more observant or understanding of what was sold to me when taking out these loans and credit cards!

caringfloss

I have already been turned down by tesco for my ppi and also have been to the ombudsman who found for Tesco.Can I go back to Tesco now they are paying out.Need advice please.

marshallka

After the adjudicator found in tesco's favour did you get the option of taking it to the actual Ombudsman. They usually offer you this if you disagree. Its not normal to go back to the firm.

marshallka

End of tether. Your redress looks to be OK as they have repaid you with the interest you paid on the PPI and the 8% statutory interest too (don't know why that is).

caringfloss

No I just had a letter saying that they found in Tesco's favourand if not I could take them to court.Tesco offered me £750 before I went to the ombudsman but I have never received anything from them.

amersall

caringfloss wrote: »

No I just had a letter saying that they found in Tesco's favourand if not I could take them to court.Tesco offered me £750 before I went to the ombudsman but I have never received anything from them.

When you went to the ombudsman you gave up your right to accept the offer Tesco made.

It bugs me that if any bank say they did not mis sell this ppi, then why make "goodwill offers"?.

caringfloss

Thanks for messages.When the ombudsman found for Tesco he said "go back to Tesco and take the 750 or take them to court.I am just paying off the card at the moment,but they will wait for their money.They are not charging me interest,which is nice of them but I will be writing to them.Thanks again

End_of_tether_2

marshallka wrote: »

End of tether. Your redress looks to be OK as they have repaid you with the interest you paid on the PPI and the 8% statutory interest too (don't know why that is).

Thanks Marshallka. I was confused by the offer as for a loan it is a lot simpler to calculate.

From the FOS rules detailed in the sticky at the start of this sub forum it appears for a credit card, they recalculate your account as if you didn't have the ppi on there and pay you the difference between what it is now and what it would/should have been minus the ppi.
Not sure I totally agree with that as each month you have had ppi and made a payment the payment pays for the ppi first before paying for any of the credit card balance. Surely it would be easier to total all of the ppi up and repay that....however not sure I am brave enough to take on Tesco and the FOS on my theory!!!!

Thanks for the help.

src007

caringfloss wrote: »

I have already been turned down by tesco for my ppi and also have been to the ombudsman who found for Tesco.Can I go back to Tesco now they are paying out.

Despite the media coverage no lender is 'paying out' now, unless a legitimate complaint is made.

Was the letter from the FOS signed by an Ombudsman or an adjudicator, at the bottom of the letter?

If it was an adjudicator you can write back again to FOS, although unless you can provide new facts its unlikely to change their opinion.

You can write to Tesco (as it can't do any harm) although unfortunately I don't think they have an obligation to give you anything if the FOS have found against you.