Calculating PPI

interminal5

I claimed my PPI and got a nice little cheque as a result. There was no explanation offered regarding how the sum I received was calculated. I asked for this in a follow-up later and the reply said that they were unable to provide me with details of how they arrived at the sum in question.
Am I being unreasonable expecting details of their calculations? I find it astounding that they are either unable or unwilling to show how they calculated my PPI refund.

[Deleted User]

interminal5 wrote: »

I claimed my PPI and got a nice little cheque as a result. There was no explanation offered regarding how the sum I received was calculated.

Read your original offer letter, it sounds like yours was a "goodwill" offer made without admitting any liability. In such cases, there is no investigation of your complaint and the bank are not obliged to provide a breakdown of the redress offered.
If it was NOT a goodwill offer then the Bank should comply with your request for a breakdown.

Alpine_Star

3.9.4 G The [FONT=TimesNewRoman,Italic]firm [/FONT]should make any offer of redress to the complainant in a fair and
balanced way. In particular, the [FONT=TimesNewRoman,Italic]firm [/FONT]should explain clearly to the complainant
the basis for the redress offered including how any compensation is calculated

http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf

Alpine_Star

Moneyineptitude wrote: »

In such cases, there is no investigation of your complaint and the bank are not obliged to provide a breakdown of the redress offered.

This is complete bull.

Banks have an inescapable obligation to investigate all complaints in accordance with DISP.

If you think they can simply ignore complaints and offer goodwill on an undisclosed basis you are just kidding yourself.

-taff

Yes, but you missed the bit out that says this is the approach in a number of common scenarios, not an exhaustive approach, and the bit that says they aware the firm may not have records.

[Deleted User]

Alpine_Star wrote: »

If you think they can simply ignore complaints and offer goodwill on an undisclosed basis you are just kidding yourself.

They do it every day in goodwill cases. They are hardly "ignoring" the complaint by offering a payment without investigation, in fact they are likely paying out even to those who may not have a valid complaint.

Alpine_Star

-taff wrote: »

Yes, but you missed the bit out that says this is the approach in a number of common scenarios, not an exhaustive approach, and the bit that says they aware the firm may not have records.

Which bit's that then?

dunstonh

Banks auto payout every day. Typically where the cost of dealing with the complaint and the potential redress is low enough to make it cheaper to settle than to argue.

In those cases, they will usually settle in accordance with the required calculations but not admit liability but position it as a goodwill payment.

Banks have an inescapable obligation to investigate all complaints in accordance with DISP.

If you think they can simply ignore complaints and offer goodwill on an undisclosed basis you are just kidding yourself.

You are misinterpreting the requirement. The bank is required to deal with the complaint but it doesnt have to investigate it if it is willing to roll over and payout.

-taff

Alpine_Star wrote: »

Which bit's that then?

Just above and at the bottom of the same page you linked to. But read from their response to 3.22.

Alpine_Star

-taff wrote: »

Just above and at the bottom of the same page you linked to. But read from their response to 3.22.

Are you serious?

-taff

Yes, I am.

"We have considered these matters very carefully and concluded that the
approaches proposed in CP10/6 (an amount equivalent to a full return of premiums or,
where appropriate, comparative redress) are....."

and further down in bold

"However, we have amended the Handbook text (see DISP App 3.8) to make clear that the remedies we have set out are not exhaustive..."

Of course, I could be imagining it means something different.