Halifax TMPP reclaim, advice needed please

[Deleted User]

elouise01582 wrote: »

It will only have taken them over 12 months.

You do realise that a FOS referral is currently taking in excess of 18 months?

dunstonh

even though my husband was living alone with no family and just wanted to ensure that should he die his mortgage was repaid they would not have taken the death in service into consideration.

If he was single and the mortgage was single and no-one was living with him then he does have a case on advised cases. There has to be a financial need. I was reading it as him being married.

Trunks

Hello !

Some good news re my original opening post. Received a letter today from Halifax confirming that they have upheld my complaint of mis-selling and are offering to refund the monthly premiums I have paid over the last ten years in respect of the MRC/PPI element of the TMPP.

They have also offered simple interest at 8%, but I would like to know how they work this out. They have offered in the region of £2,500 as a refund of the premiums, so roughly how much interest should come with that?

Any help gratefully received. Not got the cheque yet, so not home and dry, but another step towards a small victory.

Thanks !

Trunks

Hello.

Had a brief read around the forum and it seems that if I complain that the interest they are offering is incorrect, given that the letter says the Halifax have upheld my complaint, would they then refer me to the FOS (18 month wait?) and possibly withdraw their offer to me, or can't they do that as they have upheld my complaint?

Is the 8% interest statutory, and the calculation, if incorrect, may be a simple mistake on their part, that they will rectify if I point this out?

Thanks

*confused*

DevCoder

They can withdraw the offer at any point up to the money going into your account.
To work out your 8%, take your PPI premium for a year and add 8%
As opposed to compound interest you do not get interest on interest with simple interest calculations
An example

I = p× r × t
where p is the principal or money deposited
r is the rate of interest
t is time

We get:

I = p× r × t
I = 2500× 8% × 4
I = 2500× 0.08 × 4
I = 800 pounds

The above is 2,500 over 4 years.

Trunks

Hello krisdorey

Thanks so much for your response.

Based on your reply I think that their interest calculation is about £1,400 short. Is this normal practice? My premiums changed a few times over the ten years so I calculated it using the total premiums paid at 8% simple interest over 10 years.

As the letter advises that the complaint has been upheld, does this letter and decision hold more sway with the FOS should Halifax refuse to revise the amount of interest offered?

What would be the chances of success via the FOS given that Halifax have upheld the complaint?

If the FOS upholds the complaint, would they then force the Halifax to tip up the correct interest?

Is it worth ringing the Halifax to advise that the interest is incorrect?

What is the difference between when a complaint is upheld and a goodwill gesture is offered?

Is the 8% a statutory legal amount that has to be paid in the event of a complaint being upheld, such as in this instance?

Sorry for all the questions but thanks for your time !

[Deleted User]

Trunks wrote: »

I think that their interest calculation is about £1,400 short.

Instead of trying to work it out for yourself, ask the Bank to provide a thorough breakdown of their calculations.
Also be sure that your offer is full redress and not a "goodwill offer".

Only go to FOS with this if you are absolutely certain the offer is inaccurate, otherwise you'll wait eighteen months for a simple confirmation that the Bank's offer is correct.

Trunks

Thanks Moneyineptitude

The letter does advise that this is their final response, and "represents a refund of all the MRC premiums paid, plus simple interest at 8% which is then adjusted by other factors that are relevant to your circumstances" (?)

There are no other factors- I paid the money and have made no claims on the policy, therefore I don't see why the 8% simple interest, calculated using the method posted by krisdorey above, has not been offered.

I intend ringing them to ask for their interpretation of the interest offered but is this likely to result in a withdrawal of the offer?

Thanks again.

[Deleted User]

Trunks wrote: »

I intend ringing them to ask for their interpretation of the interest offered but is this likely to result in a withdrawal of the offer?

It's not whether it's a "final response" , but whether the amount is offered as a "gesture of goodwill without any admission of liability".
They won't withdraw the offer if it isn't goodwill, but you'll wait for eighteen months if you refer it to FOS-so be sure you aren't being offered full redress in the first place.

-taff

As you say, your premiums changed, you were paying monthly, not a lump sum at the start, so you won't get 8% on the total premiums paid for the total amount of years which is where 'adjusted relevant to your circumstances' comes in..