RBS have made an offer as "gesture of good will" – advice needed.

Aft4b

Hi eveyone, I hope you can help...


I have a loan with Natwest taken out in Sept 2006. I decided to request a copy of the credit agreement earlier this year but was sent a letter explaining I need to send £1, etc, etc. (I hadn’t read the forum then...)


The letter did also give a brief breakdown of the loan components and sure enough one of them was: Personal Loan Protector Insurance Premium for £6,677. I have since requested a full copy of the credit agreement and made a complaint about the PPI through my Branch relationship manager. I had not requested PPI when I took out the loan so my complaint wasn't just about cancelling it now...


RBS took their full 16 Weeks to respond with a decision which I received today.


The response reads:
In the circumstances, and given the amount of time that has passed since you made your complaint, as a gesture of goodwill and without any admission of liability, the bank is prepared to make you the offer detailed below.


My Offer
The Bank is prepared to refund the insurance premiums and interest that you have paid.


We are willing to make you an offer of £455...


Sorry, how much?! And apparently this includes an additional 8% compensatory interest and further interest for any period which the complaint was on hold.


I’m left scratching my head as a result of this offer. The Bank applied £6,677 as PPI cover for the entire duration of the loan. The loan was on an 84 month period, 60 of which have passed. So what makes them think £455 would be sufficient to cover them miss selling me PPI with my loan?


Am I right in assuming they’re just refunding me the amount since I made the complaint?


Has anyone else received such disproportionate offers? I guess I've only just started the fight but where should I go from here? I do have a break down of the offer but that doesn't make things any clearer, it's just an amount plus interest...

All help and advice much appreciated!

.

dunstonh

Was the £6667 the premium amount of the level of protection that the PPI covered you for?

Aft4b

dunstonh wrote: »

Was the £6667 the premium amount of the level of protection that the PPI covered you for?

No it can't be as the

Total amount payable - (original Sum borrowed + Total charge for credit) = £6,677

dunstonh

Total amount payable - (original Sum borrowed + Total charge for credit) = £6,677

That reads as if its the total amount of the loan plus interest. How much did you borrow at the start?

Sykes1978

A redress I beleive is the full ppi refund, I had the same few weeks ago.

Aft4b

dunstonh wrote: »

That reads as if its the total amount of the loan plus interest. How much did you borrow at the start?

Original Sum Borrowed = £25,000
Personal Loan Protector Insurance Premium = £6,677
Total Charge For Credit = £8,004.6
Total Amount Payable = £39,681.60

Aft4b

Sykes1978 wrote: »

A redress I beleive is the full ppi refund, I had the same few weeks ago.

Would you care to elaborate please?

src007

RBS are actually being responsible at the moment.

When a consumer complains about one loan they investigate all loans that that person had with PPI (if someone was mis-sold once its likely they were with the other loans as well).

Is it possible that you had another smaller loan with PPI? This could be a refund of an older loan and their investigation into September 2006 loan could be ongoing?

Do they quote a loan number?

Aft4b

src007 wrote: »

RBS are actually being responsible at the moment.

When a consumer complains about one loan they investigate all loans that that person had with PPI (if someone was mis-sold once its likely they were with the other loans as well).

Is it possible that you had another smaller loan with PPI? This could be a refund of an older loan and their investigation into September 2006 loan could be ongoing?

Do they quote a loan number?

Again, the reference numbers match so this is definately for the same account. In fact I don't have any other loans with them.

I get the feeling this is just something to buy time?

Clearly I'm not going to accept this, so should I write to FSO?

forresflower

Hi there
I would give them a call and find out exactly what they are paying out for. There are 2 numbers on the letter and sometimes they just ring out but if you hang on long enough eventually someone answers. They may have made a mistake or for some reason arent paying out full redress in which case you could write back and ask them to reconsider. I am sure someone on one of the main threads would help with the wording.
Cheers.

Aft4b

forresflower wrote: »

Hi there
I would give them a call and find out exactly what they are paying out for. There are 2 numbers on the letter and sometimes they just ring out but if you hang on long enough eventually someone answers. They may have made a mistake or for some reason arent paying out full redress in which case you could write back and ask them to reconsider. I am sure someone on one of the main threads would help with the wording.
Cheers.

The letter does say it's a good will gesture for keeping me waiting and not an admission of liability. I get the feeling they're just clearing a back log?!

The letter also says if I'm disatisfied with the response that I should write to the FSO.