How FSCS recommend redress

Sarros

Hi

Can someone confirm how the FSCS recommend redress is made after a complaint is upheld, my understanding is the following

The full premium is refunded plus interest?
The monthly ppi payment which is included in our monthly loan payment (it was a single premium front loaded) X however many months we have paid (this currently stands at 60 months)

I do not think that the 8% simple interest is added in FSCS cases.

I also understand that FSCS pays 90% of the compensation?

Any redress due will in our case be set of against the loan as it is still active. Would they recommend to our lender Welcome Finance that the loan is restructured and if they do are Welcome obliged to act on their recommendations or can they decline.

Could someone advise if the above is correct or have I got it completely wrong.

Thank you

[Deleted User]

Sarros wrote: »

I do not think that the 8% simple interest is added in FSCS cases.

I also understand that FSCS pays 90% of the compensation?

These two statements are correct.

The Bank will only off set the redress to your loan if you are in arrears or have defaulted otherwise they'll just issue a cheque direct to you. It's up to you what you do with it.

Stupid_Question

Moneyineptitude wrote: »

These two statements are correct.

The Bank will only off set the redress to your loan if you are in arrears or have defaulted otherwise they'll just issue a cheque direct to you. It's up to you what you do with it.

A FSCS claim against Welcome would see any potential redress going to the loan regardless of the state of the account.

The only way a payment would be issued would be if the loan was already settled or if the redress settled the loan and there was a surplus.

I'm not a 100% on this part but as far as I remember, if it's set off the 10% FSCS adjustment doesn't apply.

The loan wont be restructured in terms of your payment amount, your balance would be reduced.

Sarros

Stupid_Question wrote: »

A FSCS claim against Welcome would see any potential redress going to the loan regardless of the state of the account.

The only way a payment would be issued would be if the loan was already settled or if the redress settled the loan and there was a surplus.

I'm not a 100% on this part but as far as I remember, if it's set off the 10% FSCS adjustment doesn't apply.

The loan wont be restructured in terms of your payment amount, your balance would be reduced.

Hi

Thanks for your replies. I thought this would be the case, as if I am correct Welcome Finance are also listed as in default. I wasn't sure though if it was also the case when the complaint was against a broker (not WFS) who sold the product. Either way whatever we receive will go straight towards reducing our outstanding balance.

Thanks again

[Deleted User]

Stupid_Question wrote: »

A FSCS claim against Welcome would see any potential redress going to the loan regardless of the state of the account.

I stand corrected.:)