PPI Reclaiming Discussion Part 5

crudoyle

Does anyone think there's any point trying to reclaim PPI from 1998?

Nasqueron

crudoyle wrote: »

Does anyone think there's any point trying to reclaim PPI from 1998?

If you have records and can show you paid it and feel it was sold you can complain about it yes. Bare in mind it would need to be from a bank or financial institution who was part of a regulatory body, any unregulated firm (like a car dealership) in 1998 could reject your complaint as pre-regulation

Alisdairrg30

Just had response from barclaycard saying that as I got card online that I have no case and will not be getting anything.

Any ideas on next action or do I just forget it?

dunstonh

Just had response from barclaycard saying that as I got card online that I have no case and will not be getting anything.

What was your complaint?

Any ideas on next action or do I just forget it?

We need to know why you were complaining to offer any real help. Online applications do have a lower success rate on complaint as nobody sold it to you. You chose to buy it. So, you are reliant on there being a failure in the application process or bad wording on the application. In most cases there is not but in some older cases there can be.

Marisamitch

1.I took out the Card In Jan 1996 and have always paid off my balance in full each month before the due date ,and not incurred any interest charges.

2.M&S initially rejected my claim that I had been mis-sold PPI, but following my approach to the Financial Ombudsman my claim was upheld. M&S then offered to refund all the premiums up to the date that the policy ceased (my 65th birthday). This amounts to £525.61. They also offered compensatory (statutory) interest of a mere £36.54 (£30.45 after tax). I agreed to accept the premium refund but queried the amount of interest.

3. In cases where a consumer regularly clears their balance in full then the Ombudsman's recommended approach is to say that the consumer's loss is the extra amount they paid each month that they would not have paid if they had taken out the credit card without PPI. They will usually tell the business to add interest to each over payment (usually at 8%per year simple) from the date the premium is paid until the date of settlement . This compensates the consumer for the loss of the use of that money.

4. My current estimate of compensatory interest using the approach set out by the Ombudsman is about £370.

5. My attempts to get M&S to agree were dismissed, and therefore, I referred this issue back to the Ombudsman who appointed an adjudicator.

6. The Adjudicator demanded a full explanation from M&S, and a copy of their spreadsheet calculation. (Something they would not provide me with). From this it became clear that their approach to the calculation of compensatory interest did not follow that set out by the Ombudsman. Instead M&S only add interest in those months where the accumulated PPI premiums(plus interest) happen to be more than the card transactions undertaken in that month, and then only for the duration of that particular statement period. In other words they ignore the fact that the balance was paid in full before the due date. Confusing!! It seems to me that in effect they are saying that they regard the account as being in deficit as soon as a card purchase is made. This is surely denying the whole point of a credit card. Needless to say it produces a much lower amount of interest, and it certainly does not compensate the consumer for the loss of the use of their money.

7. The Adjudicator reached the conclusion that I was being treated unfairly and asked M&S to recalculate the amount of interest at 8% simple on each PPI premium paid from the date the premium was charged up until now.

8. M&S's disagree with the Adjudicator's suggested approach which they believe does not follow industry rules and practice. They feel their way is a fairer way to calculate the refund. Fairer to who? I understand that the whole matter is now to be reviewed from scratch by another (presumably more senior) ombudsman. The Adjudicator has indicated that M&S may want to provide further information or may even want to change their current position in my case. I wait to see what the next step will involve.

9. I wonder whether any Forum Members have experienced a similar situation , particularly one in which their balance has always been paid in full , but they have secured an offer of compensatory interest calculated in accordance with the Ombudsman's recommended approach.

10. Finally if M&S are correct when they say their approach represents industry practice, then potentially there are a lot of consumers who, perhaps pleased to have received a refund of their premiums, may have received less compensatory interest that I believe they should have.

11. I am not sure whether Martin reads these blogs, but if he does I would appreciate his thoughts and advice.

dunstonh

I understand that the whole matter is now to be reviewed from scratch by another (presumably more senior) ombudsman.

The initial decision is handled by an adjudicator. Either side has the right to appeal that decision. The appeal is handled by an ombudsman who will be higher qualified.

9. I wonder whether any Forum Members have experienced a similar situation , particularly one in which their balance has always been paid in full , but they have secured an offer of compensatory interest calculated in accordance with the Ombudsman's recommended approach.

Your case is unusual as the vast majority of cards do not charge PPI if you pay the balance off in full. However, expectation is that it is a refund of premiums plus interest at 8% simple. No ifs or buts.

11. I am not sure whether Martin reads these blogs, but if he does I would appreciate his thoughts and advice.

he doesn't and it woudlnt help even if he did. M&S are exercising their right to appeal and you will just have to wait. I suspect they will lose but it is does seem strange that they are referring it to an ombudsman as typically you only do that if you feel the original decision was wrong and you feel you have good grounds for appeal.

kcol54

Never used this before and cannot see where to ask new question. My claim goes back to 1998. I bought a van and PPI was added even though I clearly indicated on the form that I did not want it.
However, it seems that the finance company General Guarantee Finance Ltd is no longer tradng. What happens in this situation?

dunstonh

kcol54 wrote: »

Never used this before and cannot see where to ask new question. My claim goes back to 1998. I bought a van and PPI was added even though I clearly indicated on the form that I did not want it.
However, it seems that the finance company General Guarantee Finance Ltd is no longer tradng. What happens in this situation?

The lender is not responsible unless it was one of their staff or one of their agents that sold it to you. With cars etc it is normally the dealer that sells it and the dealer has liability. However, dealers only became regulated in Jan 2005. So, they do not have to consider earlier sale complaints.

So, if its the dealer, its pre-regulation and if its the lender (who no longer exists) then there is no-one to complain to. In a very very tiny number of cases, the insurer carries the liability and you can complain to them but that is rare (it happens but you are talking single digit odds of success that they will even consider it - let alone agree you were mis-sold).

crudoyle

Thanks Nasqueron,

I don't have any paperwork, having moved house and lost lots of documents. Plus the loan was from one of the predecessorts to Santander. No idea where to start. Any point going into the bank itself?

[Deleted User]

crudoyle wrote: »

Any point going into the bank itself?

No. Staff in a branch won't have access to such information, if it still exists.

The only way the Bank may have kept any records from eighteen years ago is if you are still a customer of theirs. However, you can send a Subject Access Request (SAR) letter which costs £10. This is basically a request that they send you all information they have on file for you.

Your choice whether to gamble the £10.

If you don't have documents and the bank have no records then any complaint is over before it's begun.