PPI Reclaiming Discussion Part 5

ahinds

-taff wrote: »

was it a condition of the mortgage?

no but was told more likely to be granted if i took it

dunstonh

ahinds wrote: »

no but was told more likely to be granted if i took it

Can you prove that?

If not and that is the only complaint reason you have then you would expect rejection unless there is another failure or you get lucky with an auto payout.

Mortgage insurance has a low success rate. Most complaints are rejected. With unprovable allegations (which is what yours is likely to be) they will look at whether it was suitable for you and you had a financial need for it. So, you may wish to focus on that area.

fuzzgun19

amersall wrote: »

Sorry but I cannot find your original post, you can complain to the ICO but wait and see what reply you get from the non compliance letter.
As you have the account numbers, I would make a claim for mis sell
with the reasons and see what they come back with.

Got a letter from BC today saying they've already sent the SAR.. going to get DH to call them later to see where they have sent it to :eek:

Carol123_2

-taff wrote: »

You need to find out how much PPI was applied to your current loan [if there is some on there], because that should also be rebated, all of it, including the interest. They should recalculate your payments and take the total off the loan. It will be more than 900 on a 20k loan.

Hi Taff,
I sincerely appreciate your response as you seem to understand how this works.

I finally got an explanation from RBS but I didn’t quite understand it. They basically said in a nutshell the following:

First Loan: Feb 2005 – June 2006 £12k
Second Loan: June 2006 – Nov 2006 £13k
Third Loan: Nov 2006 – Aug 2007 £15.5k
Fourth Loan: Aug 2007 – Present £19k

PPI of £2,872 was applied on the first loan, which was initially for 60 months. However I reconsolidated my loan after 16 months and had paid £496 in total for PPI.

Now this is where I got confused. The reaming PPI was then rebated (if that is a word?) onto the second loan of £2,376 and also the residual had triggered right through the Third and Fourth account.

Firstly, can I ask what do the bank mean by ‘rebate’? Does it mean a credit applied onto the new accounts and therefore no further PPI was paid?

Secondly, I am not clear how I have only paid PPI on just the first Loan account but my monthly payments have not changed since the initial loan back in 2005?! The bank did confirm that I was paying PPI monthly of £58.12, so in total I have paid £496 in PPI but the calculations doesn’t add up to a period of 16 months for the first loan (58.12*16=929.92)

I have asked for a break down because it’s not making any sense to me.
I am sure they have worked out the calculation correctly but I can’t get my head around this. Can you explain to me in Laymen’s text, (if you know that is) how the PPI is calculated in general, especially with consolidated loans.

Thanks
Carol123

-taff

In general then

When you consolidate a loan the PPI amount that you borrowed initially [without the associated interest] is rebated. So if you paid 4 months out of a total of 10 months, 6 months worth will be rebated.

The interest that was added to the PPI amount stays on the next loan. So if the PPI was £100, and they added £40 interest to borrow that £100, the £40 gets added to the next loan.

So according to the previous 2 paragraphs, you borrowed £100 to pay PPI over 10 months, you consolidated after 4 months, so you received a rebate of £60 but the £40 interest stays on the loan, so you still owe them £40 even though the loan that you borrowed the PPI for is no longer in existence.


This is assuming it was single premium PPI.


You should have had redress of what you actually paid for the first few months, and the interest, and then 8% interest on top of that too.

Your payments - they probably haven't changed because you have selected the equivalent length of time to pay the loans back that you did the first one.

Are you paying PPI on your current loan or any of the 2nd and 3rd one?

Carol123_2

Now I understand. :cool:
Thank you so much for explaining this to me Taff.

I was told PPI had triggered into the 2nd,3rd and 4th account when I spoke with the bank but a very tiny portion of this.

So maybe from what you have said, the offer of around £900 is about right then as the PPI paid was just under £500 plus the interest equating to around £680 (total PPI to be refunded) plus the 8% of just under £300. Very annoying that they have applied 20% tax on the 8% interest:mad:

I will wait for the full breakdown of the calculations to make a decision whether or not to accept it, but in general I am very disappointed with the offer.:(

-taff

They don't offer you more than the defined method of redress.

And if you're a taxpayer, it's actually easier to letthem take it off at source

Carol123_2

Taff,

This is seriously not looking good for me then

I do pay tax, so my bank should notify HR&C? Don't quite follow you, when you say at source???????

-taff

I have no idea about the notification, but if they pay it before they give you the money, it saves you getting in otuch with the HMRC and sorting it out yourself. Given the choice I would have preferred mind to have been taken out by the companies that gave me redress.

Poppy77

Hiya

I wonder if anyone would mind offering any advice if they have been in the same position I find myself in now.

I had 2 loans with TSB in 2001 and when I asked them if I had PPI they knocked me back so I took it to the Ombudsman who upheld my complaint in February of this year as it turned out I was paying PPI but 6 months on the bank are still messing both myself and the Ombudsman about by first saying they can't do the calculations to then saying the complaint is with a specialist team who can do calculations.

They have gone way over the deadline set by the Ombudsman and don't actually seem to be bothered that they are causing a lot of grief.

My question is as the bank obviously aren't bothered by the FOS ruling in my favour and nor are they bothered that it has been flagged up that a complaint is going into the FCA about the way they are not dealing with my complaint is it worth my while going to my local MP as I have been advised that they are generally quite good at getting things moving ?


Thank you