PPI Reclaiming Discussion Part 5

sammy452

They wouldn't have received my form until yesterday though and the letter I got today was dated 17th March

brown1950

robin-hood1 wrote: »

If you have proof of PPI on a storecard, the older the better.
With the effects of compounding at the card interest rate along with the higher 15% rate of statutory interest before April 1993, a very small amount of PPI can turn into a very nice surprise.

For example, a single £2.50 PPI payment added to a 20% APR card in January 1988 would now produce a £752 claim if the card has not been cancelled and had a continuous balance (never paid off in full).

Even if the card had been paid off in full the next month, or the card closed, the single £2.50 PPI payment would still produce a £17.95 claim today (£15.41 would be statutory interest).

So you can see that it depends when the card was paid off or closed and how many payments were made. If you paid just 6 months at £2.50 before closing - claim is now £111. At 24 months before closing, the claim is £528.52. At 60 months before closing, the claim is £1191.00. See how it grows due to the compounding and high stat rate.Yes I have software to do this stuff.

So get your claim in and you may be pleasantly surprised. Storecard claims before 2005 need to go to the insurer - not the lender or store. If you post the store name, I will tell you which Insurer to send your claim to. Yes I do this for a living.

My understanding is you are talking about 'associated interest' and redress at the
credit card purchase rate (ie) say 24.5% compounded ?

I have two credit card complaints presently with the FOS Ombudsman. These relate
both to the 'associated interest' calculations by Barclaycard and M&S>

As an example here are just two Barclaycard calculations :-

Oct 94 PPI paid £2.15 associated interest = £1.10
Sep 97 PPI paid £3.02 associated interest = £3.21

When asking the FOS adjudicator for clarification on the associated interest i received the
following reply :-

Quote '''You told me that Barclaycard haven't refunded you the compound interest you're owed You sent me a compound interest calculator to show how much you feel Barclaycard's refund should be on each premium. you've highlighted 3 examples of instances where this hasn't been done on Barclaycards schedule. Dec 94, Dec 20, and Mar 04. You have also included the Barclaycard purchase rate for each premium paid.

I've looked at the compound interest calculator you sent and i can see that you have taken
the amount charged for PPI on on a specific month and looked at how many months have passed since then and applied the interest of 21%(average) to work out the compound interest due to you on that PPI charge.

I'd like to clarify that when refunding the associated interest due we'd expect a business to only refund the extra interest you've paid because of the PPI. I've taken March 2004 as an example. The known PPI payment you made that month was £3.95. In you email you sent you feel that on this month you should be refunded £44.86 in associated interest.The total interest you were charged on the credit card that month was £9.08. So we would expect Barclaycard to calculate the proportion of that £9.08 you paid because of the PPI. The amount Barclaycard have worked this out to be £3.98 '' Unquote''

I also received similar comments from another FOS adjudicator on an M&S complaint.

Your comments would be appreciated.

[Deleted User]

sammy452 wrote: »

They wouldn't have received my form until yesterday though and the letter I got today was dated 17th March

Your earlier phone call will have been the catalyst for the response. Looks like the complaint form being sent out was automatic.

Very difficult to complain about PPI which didn't exist;-what exactly was your complaint?

If you complained that it was added without your knowledge then your complaint is at an end if you didn't actually have it.

If you complained more specifically and think the Bank is wrong about there being no PPI, then present your own evidence and tell them to re-consider.

Niemand

I've had a mortgage since 1997 and it occurred to me the other day that a few years into the mortgage I realised that the monthly fee of £13 had been debited to my mortgage account, and naturally increased my payments because it counted as a loan. I immediately found my own PPI and cancelled the one on my mortgage account.

I'm wondering if I have a case for reclaiming the PPI that had been added to my mortgage account in such a way.

In the original document I received when I took out the mortgage there was this section:

Payment Protection
To safeguard the mortgage against the possibility of Injury, Illness & Unemployment, a Payment Protection Policy is being taken out. If <my name> is unable to work as a result of an insured event, as defined in the Certificate of Insurance and subject to a deferred period of 30 days that person will receive a benefit each month of £200.00 up to a maximum of 12 months. By way of a special offer if you contract for Payment Protection Insurance arranged by the Society, the Society will pay the first six months premiums for such insurance. After such period payment of the premiums is the responsibility of the insured person. The monthly Payment Protection premium will be £13.00 and your Total Monthly Payment will be altered to included this. Attention is drawn to the enclosed Summary of Cover which you should read carefully to ensure that it meets with requirements.

dunstonh

Niemand wrote: »

I've had a mortgage since 1997 and it occurred to me the other day that a few years into the mortgage I realised that the monthly fee of £13 had been debited to my mortgage account, and naturally increased my payments because it counted as a loan. I immediately found my own PPI and cancelled the one on my mortgage account.

I'm wondering if I have a case for reclaiming the PPI that had been added to my mortgage account in such a way.

In the original document I received when I took out the mortgage there was this section:

It was very common historically to have insurances related to mortgages collected with the mortgage. Whilst it doesnt happen today (for new mortgages) it was the norm historically. Nothing wrong with it and allowed.

dotties

Hi All,
I am putting in a claim to MBNA for PPI. This is regarding a credit card which I had actively until 2012 (the account is dormant now).
MBNA purchased the contract for the card account from Halifax. The PPI on it, seems to have transferred at this time (not that I can remember having it before). Looking back, I don't recall any information about it, and I keep masses of paperwork.
I have civil service employment contract for an age, so great coverage for illness/death/terminal illness. I have a pre-existing medical condition which I don't think would have been picked up if they didn't actually have an application from me.
I've filled in the questionnaire from the MBNA website. What do you think are the chances they will consider the claim positively?

dotties

I've submitted the paperwork to MBNA and will see what they say.
Finger crossed &#55357;&#56842;

cartbeforethehorse

Has anyone had any success claiming back PPI from Citi card which was bought by Opus? the credit card was opened in July 1998. If you have had success what reason did you give for the misselling and did they admit it was missold straight away or was there a saga to it? I am trying to recall how the card was opened etc and have asked for all information to do with the account but they do not have any of the original documentation, sales records or terms and conditions applicable at the time that they are able to send to me. I have received a few statements which show the PPI on the account.
Would be pleased to hear if anyone has any success with them and what route they took.

dotties

I got a letter from MBNA today to say they are assessing my complaint and will respond within 28 days. Standard letter I'm presuming but fingers are still crossed unless other people know that letter is bad news in the long run?

dunstonh

dotties wrote: »

I got a letter from MBNA today to say they are assessing my complaint and will respond within 28 days. Standard letter I'm presuming but fingers are still crossed unless other people know that letter is bad news in the long run?

It is the same letter that goes out to anyone who makes a complaint. It means nothing other than acknowledging your complaint.