Mis-sold ppi what would be a fair offer

onemoment_2

Hi, I am trying to work out if an offer of compensation for the mis-selling of ppi is correct/fair

The details :-
endowment mortgage of 36500 taken out in 1989 payments made monthly

ppi added without me knowing until I found out 8 years later

I cancelled it when i found out as it was not or would ever be suitable for my circumstances

lender has made an offer (used the forms on here, many thanks)

What would be a fair offer of compensation

thanks in advance
Mark

dunstonh

refund of premiums plus interest. As simple as that.

onemoment_2

dunstonh wrote: »

refund of premiums plus interest. As simple as that.

yes I was thinking along those lines too, but not sure what the premium was

(think it was around £45 per month)
would that be about right on a mortgage of £36500?

also what % rate of interest would be applicable and
would it be simple interest or compound interest

would there be an element of compensation too?

thanks for your help so far
Mark

roonaldo

onemoment wrote: »

yes I was thinking along those lines too, but not sure what the premium was

(think it was around £45 per month)
would that be about right on a mortgage of £36500?

also what % rate of interest would be applicable and
would it be simple interest or compound interest

would there be an element of compensation too?

thanks for your help so far
Mark

so it was a monthly PPI? if so then 8% simple interest should be added to premiums paid (that is the compsensation). Cant tell if £45 pm is correct, depends on what monthly payment was.

But nothing wrong with monthly PPI, so unless you were not eligible or it was unsuitable, you are on the long road to rejection. If it were monthly, how on earth did you not notice it for 8 years? thats just not very believable.

onemoment_2

roonaldo wrote: »

so it was a monthly PPI? if so then 8% simple interest should be added to premiums paid (that is the compsensation). Cant tell if £45 pm is correct, depends on what monthly payment was.

But nothing wrong with monthly PPI, so unless you were not eligible or it was unsuitable, you are on the long road to rejection. If it were monthly, how on earth did you not notice it for 8 years? thats just not very believable.

When I took out the mortgage I said I did not want ppi, you had to tick a box to get it, I didnt want it as I was in a good job at the time and had the ability to pay mortgage payments via other means if need be, also intended to go self employed at a later date and ppi would not cover this

8 years later have given up job, gone self employed, self employment ends due to lack of work so go to sign on

Dole office tell me I have ppi so they wont be paying towards mortgage

Confirm this is the case with lender, ask to see where I signed for ppi, lender returns a photo copy of the form with box ticked
(box not ticked by me)

I cancel ppi this reduces mortgage payment (monthly interest and ppi was listed as one payment)

so when I said I didnt want ppi I assumed I wasnt getting it


thanks for the info re simple interest

as this happened some 10 years or so ago should there be

interest added for the payments made over 8 years

and then interest added for the following 10 years ?

thanks for your help so far
Mark

onemoment_2

Just a quick follow up to this

it looks like I was paying approx £19 ppi per month for just over a 100 months

from 1989 to 1997

Lender has accepted liability and made an offer that I have accepted :-)

dunstonh

onemoment wrote: »

Just a quick follow up to this

it looks like I was paying approx £19 ppi per month for just over a 100 months

from 1989 to 1997

Lender has accepted liability and made an offer that I have accepted :-)

That is very lucky. It would probably been quite easy to defend your complaint. Chances are though it fell during a busy period and the amount was below their threshold so they are auto paying out.

Di_L

onemoment wrote: »

Hi, I am trying to work out if an offer of compensation for the mis-selling of ppi is correct/fair

The details :-
endowment mortgage of 36500 taken out in 1989 payments made monthly

ppi added without me knowing until I found out 8 years later

I cancelled it when i found out as it was not or would ever be suitable for my circumstances

lender has made an offer (used the forms on here, many thanks)

What would be a fair offer of compensation



Hi Onemoment,

Can I ask approx what they are offering you. I am in the same position as you with Nationwide and I am now awaiting to hear what their offer.

Thanking you in advance