what next?

confusstimicated

I have just received an offer from Ocean finance for mis sold PPI but they have deducted over £1000 because this is what I would have paid if I had got PPI from another company! Their offer was therefor only £600. Do I have to go to the Ombudsman or shall I just reply to them saying that I want the full refund as the whole complaint stated that I didn't need it at all.
thanks for any advice x

dunstonh

I have just received an offer from Ocean finance for mis sold PPI but they have deducted over £1000 because this is what I would have paid if I had got PPI from another company!

Are you sure that is the case? Is it more likely that they have converted the single premium cost into monthly premium? That is the normal outcome and the one the FSA have in their guidelines for dealing with single premium PPI where no other failing is identified.

Do I have to go to the Ombudsman or shall I just reply to them saying that I want the full refund as the whole complaint stated that I didn't need it at all.

The FOS is there to ensure compliance with FSA rules. The FSA allow a conversion from single to monthly. So, what reason would you go to the FOS?

We need to know what your complaint was and what the response was to your complaint.

confusstimicated

In their calculations £19.72 x 60 months was deducted from the amount the are willing to pay me. They said....

quote "The monthly cost of an alternative regular premium policy (using the FSA's reference rate of £90 per £100 of benefit payable)

Does this not mean they are taking off what i could have paid elsewhere?

confusstimicated

sorry, i didn't mention that the reason I complained was that I didn't need the PPI, I had insurance with another company that covered me ridiculously well.

[Deleted User]

confusstimicated wrote: »

t they have deducted over £1000 because this is what I would have paid if I had got PPI from another company!

Please post up the relevant section of your offer letter where they say that. It sounds more like they've converted your single premium PPI into a separate policy and awarded you the difference in cost.

EDIT; Dunstonh got there first!:)

[Deleted User]

confusstimicated wrote: »

"The monthly cost of an alternative regular premium policy.
Does this not mean they are taking off what i could have paid elsewhere?

No, it means they've converted a single premium policy (from them) and refunded you the difference in the cost of a regular premium (from them).
There is no mention of "elsewhere".

confusstimicated wrote: »

i didn't mention that the reason I complained was that I didn't need the PPI, I had insurance with another company that covered me ridiculously well.

If you already had significant overlap of cover with another provider, then why did you agree to the Ocean Finance PPI? What did Ocean say in response to this aspect of your complaint?

confusstimicated

Right the letter says:

We are upholding your comlaint and are now obliged to make an offer of redress. The information from your lender has confirmed that you were sold a regular premium policy. Our offer of redress aims to put you in a position you would have been in had you not purchased a policy from our firm. We have made our calculations broadly in line with the guidance issued by the FSA as shown in the calculation below:

1. The amount paid each month for the insurance cover £28.49
2. Number of payments made 60
3. Total amount paid (1x2) £1709.40
4. The monthly cost of an alternative regular premium policy (usingthe FSA's reference rate of £9 per £100 of benefit payable) £19.72
5. Total cost (4x2) £1183.20
6 subtotal (3-5) £526.20
7. Simple interest (8%pa) on the difference between 1 and 4 £106.99
8. income tax deduction £21.40
9. Total redress due £611.79

Hope this helps? Thanks x

[Deleted User]

Already answered above.

confusstimicated

Moneyineptitude wrote: »

It sounds more like they've converted your single premium PPI into a separate policy and awarded you the difference in cost.

I don't understand what you mean by this - I'm sorry if i sound stupid. I didn't need or want the PPI - or even know that I had it until I'd paid off the loan. Should I push for a full refund or just settle for what they are trying to give me?
Thanks

dunstonh

They redress method they are using is where they the only uphold area is single premium basis. For these, they are required to refund the single premium plus interest but deduct the FSA reference rate for monthly premiums. Then add interest to that and pay you that.

So, as it stands, they are saying that are only upholding on the basis of single premium. Is there no response to your point about you not wanting it? If that part of the complaint was upheld, it would be a full refund with no conversion to monthly premium.

-taff

They are saying that you did need the policy, but that they sold it to you as a single premium which was bad, so they've converted it to a monthly premium, which is good, but itmeans you get less money back because they're onyl giving you the difference between the two policies.

If you have another complaint reason besides single premium, such as you were covered elsewhere [life insurance on a mortgage doesn't count] or that you had a separate income/savings that could pay it off in the event of you losing your job, or an excellent sickness scheme at work,then dispute their findings on these gorunds.

You have 6 months from their first final letter to go to the FOS so you could reject their findgins with your evidence of the above, or you could forward ti to the FOS.

If you have no other complaint reason other than it was single premium, your complaint will probably fail and you could accept what they've offered you above.

It all depends whether you can prove you had no need of it.