Accept the offer or not???

piglet25

My friend had five loans with Natwest and put claims in for the ppi, which amounted to approx £12,000. She has been offered £7,700 and is trying to decide whether to accept or to reject and go to the ombudsman. Is this a good result or should she pursue it for the full amount? and if she should pursue it how long roughly would it take and what are the chances of a full payout, or is there a chance she could end up with nothing? Thanks

dunstonh

The refund method is largely defined. So, if the calculation is correct, she wont get any more by going to the FOS. Just months to years delay instead.

Does she have any reason to believe the calculation is wrong?

piglet25

She thought, as I did, that whatever she paid in she would get refunded, but if that offer sounds about right then I will tell her to not bother going to the ombudsman, and to take the offer they have made.
ETA - I have just had a look at the sticky with the rough guides on it and am wondering if in fact they have diddled her, I remember she showed me a letter from the bank with all the costs of these policies on and it was just over twelve grand, so surely that should be the refund? Am puzzled by it all! Thank you.

dilus

piglet25 wrote: »

My friend had five loans with Natwest and put claims in for the ppi, which amounted to approx £12,000. She has been offered £7,700 and is trying to decide whether to accept or to reject and go to the ombudsman. Is this a good result or should she pursue it for the full amount? and if she should pursue it how long roughly would it take and what are the chances of a full payout, or is there a chance she could end up with nothing? Thanks

If each of the loans have been used to settle the previous ones then rebates will have been paid, this may explain the lower figure. You are correct in thinking you should get back all PPI paid to date + 8% standard interest but rebates will be deducted. A breakdown of the calculations would explain how they have come to that figure, have they provided one, if not I would ask for one before deciding

ALIBOBSY

As above definately get a full breakdown before deciding to accept. There are spreadsheets you can download to give you an idea regarding the calculations if you want. Never seen any on MSE but over on the CAG forum there are a few.

Ali x

dunstonh

She needs to get a breakdown as mentioned above.

However, one reason it may be lower is if she repaid the loans early. in these cases, a relatively pro-rata refund of PPI is given at that time. So, this "could" account for the difference. A breakdown would confirm it.

Most give the breakdown of the calculation as a matter of course.

piglet25

Thanks for your help, I have spoken to her and she did consolidate them, so its like one long rolling loan (!) but she says when she got in touch with the bank to see the amounts of ppi paid they sent a statement with the totals of £12,000 so whether thats what would have been paid if she hadn't consolidated or whether thats what was actually paid she will have to find out