What if you were missold PPI BUT you've claimed more than you've paid??

dunstonh

I think we can all agree that you need to escalate this complaint to the FOS as soon as possible.

I dont think we agree that at all. Tesco have taken the correct response in accordance with the FSA guidelines. What benefit would it be to take it to the FOS who will just use the FSA guidelines?

dovobet

Hi
ok last week we recieved a letter from the halifax out of the blue, we hadnt claimed or sent anything to them complaining at all.
Letter said we had been paying £15.15 a month morgage protection from 1988, which we have, but when we took out a new morgage in 1991 it should have been cancelled, (we moved house in 1991 and i thought increased our morgage)
Therefore we had paid £3636 that we would get back plus interest which is £2764 so £6400 in total :rotfl:
However when i broke my back in 1999 i claimed against the morgage protection for 2 years which paid £250 a month total £6000
Have recieved the money in my account but am scared to spend it in case they in a few months time they realise and want it back,
Any input welcome

Common_Sense_2

marshallka wrote: »

Its already been upheld BUT Tesco are stating that the amount that the OP claimed was more than the Policy. I have doubts whether they have actually included ALL THE INTEREST in that statement that the OP paid on top of the policy so I would ask Tesco to confirm the full cost if it were me or if the OP posts up the figures of the agreement someone could check this for them. It "could" well be that the amount claimed totalled more than the full cost of the PPI but that is VERY VERY rare.

it depends if it is a single sum premium or a pay monthly - if it's a pay monthly then it is quite easy to have a greater benefit than what you have paid.

For example,

- £220 per month loan with £20 of it for a pay monthly PPI. 12 payments are made totalling £2640 (of which £240 is for the PPI).

- Customer goes sick for 6 months so the PPI kicks in and pays 6 months payments (£1320).

- after this the customer complains of miss-sale that is upheld.

- Customer is due back £240 premiums plus interest but has actually had £1320 worth of benefit.

dunstonh

Have recieved the money in my account but am scared to spend it in case they in a few months time they realise and want it back,

Based on what you have said, they have messed up and should have deducted your claim from the redress. Banks though are notorious for poor administration. So, its possible they dont have records of that claim and are unaware of it and the insurer hasnt told them. If thats the case, they will never realistically find out. However, it may be worth just putting the money to one side for 6 months to be on the safe side.

marshallka

Common_Sense_2 wrote: »

it depends if it is a single sum premium or a pay monthly - if it's a pay monthly then it is quite easy to have a greater benefit than what you have paid.

For example,

- £220 per month loan with £20 of it for a pay monthly PPI. 12 payments are made totalling £2640 (of which £240 is for the PPI).

- Customer goes sick for 6 months so the PPI kicks in and pays 6 months payments (£1320).

- after this the customer complains of miss-sale that is upheld.

- Customer is due back £240 premiums plus interest but has actually had £1320 worth of benefit.

I would 99% say that this one with the Tesco Loan was a single premium.

JuicyJesus

the_knitting_drummer wrote: »

I think we can all agree that you need to escalate this complaint to the FOS as soon as possible.

You weren't told it was optional, had a pre-existing medical condition and had employer benefits. So what if the policy actually paid out, just don't mention that on your complaint form. FOS won't notice, because it's unheard of for a policy to actually pay out. If they do notice, they'll probably decide that 'on the balance of probabilities this probably happened in a parallel universe'.

I can't tell if you're being sarcastic/trolling or being serious. If the former my hat goes off to you. If the latter you are mental.

In the remote case it was the latter (although this is the PPI board, and facts and reason tend to be uncommon when it comes to "getting back at banks" or whatever crap it is people use to justify "reclaiming" these days) Tesco agreed the policy was mis-sold, but the OP had already made a successful claim. There is no reason why the OP should have both the proceeds of the claim and all their premiums back, since they were claiming that the PPI was invalid from the beginning and should never have existed. The FOS, at best, would say the customer needs to be put back in the position they would be in should the PPI have never existed, which would mean they wouldn't have paid the premiums and wouldn't have had the claim proceeds either. So they take the premium costs and give those back to the OP, less what they had already paid out on the claim. If the latter exceeds the former then technically the OP owes them the balance; in practise this will never be sought.

If the OP lies on the FOS form then first that is fraud, and second Tesco will have ample documentation to prove that yes, they paid out on a claim. It will be the slam-dunkiest case Tesco ever had to deal with, since if you've demonstrably lied about something then you don't really paint too good a picture of yourself. The only benefit to this for the OP would be the smug sense of satisfaction at having cost Tesco Bank £500 for having to deal with a baseless complaint, which would be small comfort from the vantage point of potentially being convicted under the Fraud Act.