Natwest "Goodwill Offer" Seems Insufficient

circa2013

Hi everyone thank you for all the guides on this site I have found them all very useful!

I was contacted by natwest basically saying that we may be eligable for a PPI refund on some of our loan accounts, the enclosed a list of five account numbers and policy numbers which they had on file (presumably there would be more past the cut off point of 6 years but I cannot be sure).

I filled out their form basically stating that we were unaware of the PPI being added to our policies, had we known we would have liked the opportunity to outsource etc.

I should mention now that I have several of the loan agreement forms for these accounts (some pages are missing and incomplete) but on only one form can I see that PLP Insurance has been added at a total of £1371.80 (but that's not to say some of the other loans wouldn't owe back some PPI surely?)

Well today I hear back from Natwest stating "It is my responsibility to review the circumstances surrounding your purchase of the policy. This means I have examined the records available from the time of the sale as well as considering the information you provided. I have done this in order to check that you were made aware of how the policy worked and to confirm you were given all the information you needed to make an informed decision to proceed with it.

On this occasion I have been unable to confirm precisely what information you were given at the time you purchased the policy. 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.

My offer
We are willing to make you an offer of £436.13"


This seems very low? Not to mention the fact they basically didn't look into anything because they didn't seem to have any information regarding this policy.

What should my next move be? They included a leaflet from the FOS but I feared something like this would happen and am not too sure the best way to proceed to ensure we don't end up with nothing/ peanuts.

Any help would be greatly appreciated! Thank you!

[Deleted User]

circa2013 wrote: »

What should my next move be?

If you don't want this goodwill offer then refuse it and take your "complaint" to FOS. Do be aware that the Bank can choose to withdraw a goodwill offer and the Ombudsman is likely to agree with that there is nothing in the Bank's records to support your complaint.

In addition, your reference to the loan agreement forms only show what was agreed at the outset of the loan and are not proof that you actually paid this amount. For instance, you would have paid far less of this PPI if you settled early.

circa2013 wrote: »

some of the other loans wouldn't owe back some PPI surely?

You are only "owed back" PPI if it was mis-sold to you. Have you any evidence that you even had PPI on these other loans?

circa2013

My documents are incomplete so any crucial pages which might highlight if there was PPI are missing which is a shame. I had presumed as they quoted my loan account numbers they may have found that there was some PPI on those accounts but that's neither here nor there I suppose.

Do you think it would be worthwhile just taking the offer then? I don't suppose Natwest would be susceptible to a request for reconsideration and generosity? haha. Oh well.

[Deleted User]

circa2013 wrote: »

I don't suppose Natwest would be susceptible to a request for reconsideration and generosity?

I think the Bank would say they have been "generous" in making a goodwill offer!
(Actually, they have made the offer only because it's far less than they have to pay to FOS if you refer the complaint to them)

circa2013

Hmm so is this the best I am likely to get given what Natwest have said about being unable to find the information? Or does that mean the FOS would side with me?

This is such a shame!

[Deleted User]

circa2013 wrote: »

Or does that mean the FOS would side with me?

As I said earlier, the Bank would likely withdraw the offer on referral to the Ombudsman (they'd have to pay a referral fee of around £850) and if FOS failed to uphold your complaint (as seems likely) then you'd get nothing and wait around eighteen months to be told.

Instead of moaning that this is a "shame", I'd be pleased to accept the £436 rather than nothing at all.

Your "complaint" that you were unaware of the PPI was really weak because the documentation (which you admit you still have a copy of!) clearly showed that you were aware!
Forgetting about the PPI or simply failing to read the paperwork that you signed is not mis-selling.

dunstonh

A payment of £436 is half the cost the bank would suffer if you referred it to the FOS. This is almost certainly why they are offering a goodwill payment. It is cheaper to settle than argue the case. However, as mentioned, the bank can withdraw goodwill offers. After all, if you refer it to the FOS and the bank has to pay the fee, then there is no reason for them to offer the goodwill payment any more. It is then in the hands of the adjudicator (although the FOS often give one last chance to accept the offer).

This seems very low? Not to mention the fact they basically didn't look into anything because they didn't seem to have any information regarding this policy.

With an auto payout, they wouldnt look into anything. That doesnt matter though as you are getting lucky with a payout.

Unless you feel the figure is wrong, there is no reason to argue the point.