Natwest\RBS PPI Goodwill gesture

humdrum01

First let me apologise for my First post being probably such a common one. i've had a quick search and not come across anything that really answers my question.

The bank have sent me 8 letters, all offering different amount of money, this I understand as I originally took out a loan with PPI and subsequently took out another loan to consolidate the first, then a year later a third to consolidate the 2nd and so on.


This means I had a total of 8 loans with the first 4 having PPI and the last 4 not. (The first I was told I had to have the PPI to protect the bank incase I couldn't make the payments as I was high risk for defaulting as I had never had credit before.)


The strange thing is all the letters state

"whilst investigating your concerns relating to the PPI in association with the loan account that you initially complained about, it has come to light that this loan forms part of a consolidated loan chain. As a result an investigation into all loans within this chain has been carried out.


In the circumstances, as a gesture of goodwill and without any admission of liability, the bank is prepared to make you the offer detailed below"

Is this just the wording they use when they are making their offer? Or is this just what it says a good will gesture? and they haven't actually looked into/been able to find an answer now the 8 weeks has passed they are genuinely offering me this in good will?


Also it seems like they are making an offer for some loans that didn't have PPI? is this because all the subsequent loans played some part in consolidating the first four that did have PPI?


I'm all very confused by the offer amounts as they very quite a bit. There was one loan that I consolidated(that had PPI on outset of the loan of £3000) after 15 months and they are offering about 2k for. but the loan that consolidated that one (and also had PPI on the outset of the loan of £2500) which was open for 20 months before I settled it they are offering me £300 for? as I said all very confusing.


I've looked back though my bank statement and on two loans mentioned above.


On the one that had PPI at the start of the loan of £3000 I was made a payment once the loan had been consolidated called "REFUND LOAN INSCE" of £140 and on the one that had PPI at the start of the loan of £2500 when it was settled natwest made a payment called "LOAN ACC CLOSED" of £450 back to me, which I guess is the PPI that was outstanding when they where settled.

So does that mean that the amount I should be looking at getting back is £2500 minus the £450 payment and £3000 minus £140 on those two loans? + the 8% or am i working this all out wrong?

And I would guess something along the same lines for the first two loans?

Any help or insight anyone can give would be very much appreciated. Thanks.

-taff

If you consolidate the loan, you effectively end the PPI payments early. The interest is rolled over onto the next one though hence offers for more than the 4 with PPI.
Without your own documents, you can't say for sure it's what you paid, but if they have broken down your payemtns, you should be able to see they're right or not.
The older loans will have larger amountsof interest because of the age etc.
You should be looking at getting exactly what you paid, plus the associated interest plus 8% less the early repayments.

humdrum01

Thanks for the quick response Taff, yeah I don't have any paper work. so I have been trying to work out it using how much I was given back and how long was left on the loan to work out my payments.

but i'm hitting a mental brick wall at the moment.

in answer to your question though, they haven't given me a breakdown of any payments I have made. just
total refund of PPI Premium and associated interest paid to date £262.95
statutory interest £125.55
less tax £25.11
net interest £101.44
total offer £363.39

I think I am being thrown by the wording of the letter as much as anything,

but what I don't get is one loan where I made 15 payments towards a total PPI at the outset of the loan of £3000 gets me an offer of £1500 including associated interest paid to date.

and one loan that i made 19 payments towards a total PPI at the outset of the loan of £2500 gets me an offer of £250 including associated interest paid to date.

by my rough maths that works out at £13 a month including the interest and considering my loan payments where around £450 a month that doesn't look quite right to me.

[Deleted User]

humdrum01 wrote: »

Is this just the wording they use when they are making their offer? Or is this just what it says a good will gesture? and they haven't actually looked into/been able to find an answer now the 8 weeks has passed they are genuinely offering me this in good will?

They are making a "goodwill" offer because they haven't investigated your complaint, not because of any time consideration but rather to avoid paying any FOS referral fee. They haven't admitted any liability, so your complaint is not upheld.

It's up to you whether to accept the offer or you can refer your complaint to FOS where it will languish for about eighteen months. Do be aware though that consolidation chains with a single monthly PPI premium are still the most upheld by the Ombudsman.

You now have to decide whether your "offer" is already a refund of all your PPI plus attendant interest plus 8% simple interest.

humdrum01

Cool, thanks for the reply Moneyineptitude, should I also be looking at getting RBS to recalculate the difference in settlement fee's with and without the PPI?

[Deleted User]

humdrum01 wrote: »

should I also be looking at getting RBS to recalculate the difference in settlement fee's with and without the PPI?

You can ask them for a breakdown of how they reached their final figure, but remember that it remains a "goodwill" offer-they haven't upheld your actual complaint.

humdrum01

As there are 8 individual good will offers. would it be possible for me to accept some of the offers and not the ones I have queries against or is it an all or nothing kind of thing?

Thanks again.

I suppose I can ask them to look at the one that doesn't make sense and see if they will look at making another offer. (A long shot I know. )

[Deleted User]

humdrum01 wrote: »

As there are 8 individual good will offers. would it be possible for me to accept some of the offers and not the ones I have queries against or is it an all or nothing kind of thing?

It's basically one complaint because all the loans are part of a consolidation chain. How could you justify accepting some of the offer, but not all ?
You either accept all or reject all.

humdrum01

Moneyineptitude wrote: »

It's basically one complaint because all the loans are part of a consolidation chain. How could you justify accepting some of the offer, but not all ?
You either accept all or reject all.

I thought as much.

The reason for me raising the possibility of looking to accept some of the offers but not all, would be that I believe what they have offered on some to be fair. but on the one mentioned above how can I accept it, with working out that the PPI part of my loan was less then £13 a month out of a £450 monthly debit.

Thank you again for the advise, I am guessing my best bet is to call them up and ask them to explain how they worked out each amount and how they calculated the two examples mentioned above. as I said its that one that is really sticking out as being majorly wrong and without that one jumping out at me, I probably wouldn't have even come on here to ask for help trying to understand the offers.

Thank you again for your help.

[Deleted User]

humdrum01 wrote: »

I am guessing my best bet is to call them up and ask them to explain how they worked out each amount and how they calculated the two examples mentioned above. as I said its that one that is really sticking out as being majorly wrong

Remember that they have made a "goodwill" offer, so they don't have to actually refund all your PPI or pay redress according to any FOS guidelines.

You really have only two options

Either accept the Goodwill offer or refer your original complaint to the Ombudsman. Do note that the Bank may then choose to withdraw their goodwill offer and (if FOS don't uphold) you may then get nothing at all.

I do agree it's worth asking the Bank how they came to their calculations, but don't do it with a sense of entitlement-they haven't actually upheld your complaint!