Mortgage PPI Bank Offer

Hughesj2

Hi. I was wondering if anyone could help. I contacted RBS about a previous mortgage (2000-2004) with regards to PPI that was inproperly sold (on a mortgage of around £60,000). The bank have made an offer of around £1800(which they have said is a gesture of good will!!)and they have said that the offer is made without any admission of liability.Do I take the offer as I'm not sure whether it is in the ballpark of what they should be offering?Thanks

Pinkteddy

Hi,
What you need to do is look back through all your statements and add up all the amounts of PPI taken off you. Then add 8% to the total of PPI taken. This will give you a rough guide as to their offer. There is a saying, "Never accept the first offer", so you might write back and say that their offer isn't acceptable, and that although you hope the matter can be settled amicably, you might find it necessary to involve the FOS. Try the consumeractiongroup.co.uk website for ideas and template letters. You could go to your CAB with your statements, and list of ppi deductions, and ask if they can enter your figures on their spreadsheet for calculating the interest. (This is the difference in monthly interest you will have been charged on your mortgage, with or without PPI.) May I suggest you steer clear of debt maintenance companies, who are mostly best well steered clear of!!!)

Regards
Pinkteddy

dunstonh

they have said that the offer is made without any admission of liability.

Which is normal. It basically means that you dont have a strong case but they are offering payment as goodwill (banks are now rolling over pretty easily).

Do I take the offer as I'm not sure whether it is in the ballpark of what they should be offering?

if its refunds of premiums plus interest then they are offering you what they should.

There is a saying, "Never accept the first offer", so you might write back and say that their offer isn't acceptable, and that although you hope the matter can be settled amicably, you might find it necessary to involve the FOS.

As the complaint has not been upheld and it is only a goodwill offer, they could decide that it is better for them to withdraw the offer and let the FOS decide in that case.

Hughesj2

Having looked at the statements that I had available and the fact that my girlfriend has now recieved just over £4000 for a mortgage that was around £120,000(double mine) for a similar time as my 4 year mortgage,I think the £1800 they offered me was about right.(We both contacted the banks direct rather than using recovery companies)Thanks for your responses on this.The Maldives here we come!!