4 loans, 10 years ago - can this be correct?

-taff

What are they offering you, 186 or 14?

Did you owe Barclays any other money for any credit cards, overdrafts etc?

epskie

They have offered (and paid) me £14.63.

I have no other debt at all with them. A year ago they paid me £1300 in a refund for 1 loan but refused these 4 loans. FOS wrote to me to say they were now to pay out and here I am with £14.63.

I can't make any sense of it at all :-S

epskie

Any ideas anybody? Sorry to push, I'm just at a bit of a loss

[Deleted User]

epskie wrote: »

Any ideas anybody? Sorry to push, I'm just at a bit of a loss

What does the Bank's letter say?
If it's not self explanatory, you need to request a full breakdown of how they calculated your redress.

dunstonh

The first three loans would have received rebates on early repayment. So, you would expect back less than the premiums paid. The premiums on one year terms would have been small.

What does the calculation say?

epskie

A - Original PPI Policy Premium - £186.56

B - Interest incurred due to PPI - £14.66

C - Less the proportion of successful claims associated to PPI - £0.00

D - Less cost of equivalent cover under a regular premium PPI policy - £186.72

E - Less any other previous refunds made directly as a result of this policy - £0.00

F - Total refund due (excluding 8% interest) = (A+B)-(C+D+E) - £14.50

F - Total refund due (excluding 8% interest) - £14.50

g - 8% per annum simple interest on PPI overpayments - £0.13

H - Less any previous 8% per annum compensation paid in relation to PPI overpayments - £0.00

I - Total refund due (including 8% interest) = (F+G) -H - £14.63

dunstonh

Ahh, I can see the issue.

Was your complaint about it being single premium? They have recalculated it is monthly premium (which they are allowed to do on that reason) and adjusted the interest. As they were all short term, the figure is not big.

This calculation is used when there is no identified failure other than single premium.

epskie

Thank you. I don't fully understand that. Is there anything I can do?

-taff

What does the FOS letter say? Does it say they have ot refund all your premiums? Or refund them in line with their guidelines? Because, if it doesn't, that's your rebate.
If it does say you are to be refunded in total, along with 8% interest etc, then they haven't done this, and phone up the FOS and speak to them.

epskie

'Barclays will be writing to you to explain the precise terms of its proposed settlement however it has told us it will be based on the general approach that the FOS takes when we decide a consumer has been mis-sold a PPI policy'

3 - where the loan and the PPI policy have run the full term

In these cases the financial business should:
(A) calculate and pay the consumer the amount of the net payments the consumer made in respect of the PPI (including any interest or charges) by comparing:
- the payments actually made;
- the payments which would have been applied if the consumer had taken the loan without PPI; and
- add interest on each of these net payments at the rate of 8% per year simple from the date of each payment to the date the compensation is paid; and
(B) set out in writing for the consumer the details of the calculations under (A)