PPI Reclaiming Discussion Part 5

nocharge

Redress for mis-sold PPI on credit cards

Where a PPI policy is sold alongside a credit card, the premium is added to the credit card balance each month and interest is payable on it.

Our approach

Where a consumer was mis-sold PPI alongside a credit card, and the policy remains in force, we will tell the business to cancel it. The approach we tell the business to take to compensate the consumer fairly will depend on the consumer’s circumstances and the current position of the credit card, but compensation will usually involve two steps:

A hypothetical reconstruction of the credit card account to find out what the current balance of the credit card account would be if the consumer had paid the same monthly payments, but the PPI policy had not been added to it.

This will involve the business removing the PPI premiums, any interest that was charged on the premiums and any charges (and interest on those charges) that would not have applied if the PPI had not been added to the account.

The business should then pay the consumer the difference between the current balance and what the current balance would have been without PPI.
The addition of interest (usually at our normal rate of 8% per year simple) on any credit balance for any periods when the reconstructed account would have been in credit.

Therefore, I read the Financial Ombudsman's approach as I've detailed above, i.e. refund all the PPI payments made, refund any interest paid as a result of the PPI payments taken each month and pay 8% for any periods when the account would be in credit?

So if that's correct, I would get more than the £1500 offered.

-taff

You should do but you'll have to provide your own documentation, as you have, to prove you paid more.

nocharge

That's fine, as I sent them 9 years of statements - 95' to 03' with each payment highlighted!

I was more concerned with the refunding of the additional interest I would have paid each month as a result of the additional PPI fee taken and added to my outstanding balance, payable at their monthly interest rate of 1.63%, as over the 14 year period I had the card, it amounts to a significant amount!

They have written confirming they have upheld my claim and even sent me the cheque for £1500, (which I haven't cashed so not to jeopardise my claim) so I feel they have acknowledged my claim for mis-selling of PPI, it's just the issue of agreeing on the amount of compensation!

manic_mo

Hi can you please advise if your PPI payments were seperately detailed on your statement or were they incorporated into your interest charge. Your response could help my own claim. Thx

[Deleted User]

manic_mo wrote: »

Your response could help my own claim. Thx

But, by your own admission, you didn't have PPI?
https://forums.moneysavingexpert.com/discussion/comment/61803435#Comment_61803435

nocharge

manic mo - yes all the PPI payments were detailed separately as 'Cardholder Protection Plan' on every monthly statement and varied in amount depending on the outstanding balance. They were not incorporated into the monthly interest charge, it was an additional charge, like any purchase item that was added to the outstanding balance and then subject to the monthly interest charge. Hope that helps?

[Deleted User]

nocharge wrote: »

Hope that helps?

Unlikely. "Manic Mo" didn't actually pay any PPI!

nocharge

Ah, not likely to be much help then!

sava05

Money is no help at all, don't ask him/her.

magiciansgirl

Hi, does anyone know if it is worth appealing an earlier FO decision about a PPI claim for a car loan? The FO decided against us. It was a Black Horse/Lloyds loan though the forms were filled in a car showroom; the FO decided that there wasn't enough evidence of mis-selling. The questionnaire advised against taking PPI, however my partner was verbally told that if he didn't take the PPI he would not get the loan. We consider that was undue pressure; his mother had just died too, so he wasn't feeling very robust. I ask now in the light of the news that Lloyds ticked boxes fraudulently. Thanks for any advice; if you think I should start a new thread, please do say.

Magiciansgirl