can the bank withhold interest

cakey

we had an offer of ppi back in June. llyods have stalled saying the money will now be paid end of oct, originally we would have been paid interest up till the 14th september. now they are saying they won't pay the extra month and a halfs interest. is that allowed?

magpiecottage

No they should pay interest up to the point of repayment, unless they are offsetting the redress against outstanding balances so that it is to your advantage.

cakey

hi, they are paying it directly , not against any loans or anything. they have come back and said they will pay up till the 14th of september (the interest) as a goodwill gesture. I'm still waiting for the money now and the refuse to pay the extra interest is it really a goodwill gesture to pay the interest

magpiecottage

The FSA Handbook says, "the firm should pay to the complainant a sum equal to the total amount paid by the complainant in respect of the payment protection contract including historic interest where relevant (plus simple interest on that amount)." (Rule DISP App 3.7.3E).

The bold bit is the one that is relevant to you. It does not specify up to the date the redress is paid to but I think any reasonable person would assume that is what is meant.

However, you were probably speaking to the monkey not the organ grinder so wait and see.

cakey

thanks for you replies. i will go back to them with this

PPItechexp

cakey wrote: »

thanks for you replies. i will go back to them with this

threaten to take them to fos if they dont comply. fos will award you the interest but i suspect bos wont want to pay a referral fee