ppi offer

robin22

Hi all i have a claim against central capital i sent it to FOS 1 year later i received a letter from FOS saying that central capital had prepared to offer me a proportional rebate of the policy and that this offer was made before FOS had completed their investigation and FOS is saying until they complete the investigation they cannot say if my claim will be upheld and central capital is saying they will withdraw their offer if i do not accept their offer I am at a loss what to do can anybody help

Thanks rob.

dunstonh

Goodwill offers are allowed to be withdrawn. An offer is often made before the FOS get to a certain stage as it can avoid the FOS fee.

How strong is your complaint reason?

robin22

it is hard to judge i took out a loan of of £17000 with paragon finance with ppi on the loan but i paid off the loan early so i did not complete the full term on the loan ppi was £5950 the loan was over 120 months and a a lot of small print on the form the part i do not understand is why they would make a offer if they thought fos where going to rule in their favor

Thanks

dunstonh

When you repay a loan early, the settlement figure would include a rebate of some of the premium normally. So, whilst you paid £5950, some of that would have been rebated.

the part i do not understand is why they would make a offer if they thought fos where going to rule in their favor

If you settle then they will not need to pay the FOS fee. If they win their case, they will still have to pay the FOS fee. If they lose, they will pay the FOS fee and the redress. Firms will often give an offer, even on the weakest of complaints, as it can be cheaper to settle than to go through the process.

You need to decide how strong your case is how much is involved. You wont be getting back £5950 if you repaid it early. How much have they offered?

robin22

I have emailed the fos as there was no amount on the letter i received, just a part for my signature accepting the offer made by CT capital

amersall

Sorry for poking my nose in dunstonh
With this company I would want a mis sell and not a portion of the rebate back, no wonder they want the op to accept this rather than full redress.

If the op won full redress then the whole PPI is taken off the balance and this would mean that the settlement figure would have been less and they would have to pay the 8% too, the remaining PPI after the rebate would have been paid back in the settlement figure also.

If I am not mistaken, this loan would have been Single Premium, although this does not guarantee it being upheld by FOS, it is a valid reason for mis sell.

dunstonh

I was thinking that they are offering the required amount and the difference is just the early repayment rebate. Hence why the calculation is important to know.