Halifax ppi refund. Not sure if I should accept.

Chrisht

Hi. New to this so hope someone will be able to advise me please.
Few months ago applied for refund to Halifax for refund of ppi on old settled mortgage and loan. Got offer for mortgage of £6072 which effectively was £3007 ppi payments and £3020 interest. They didn't break it down further than this, but as we had borrowed £52000 over 25 years and paid it for 9 years before settling, it seemed reasonable and as I didn't know how to check, so accepted.
We were turned down for loan ppi, but I appealed and the decision has been overturned and they have offered just £1093. They say £524 for payments and£569 interest. We took out this loan 2years after mortgage and settled after 7 years. The loan was for £25000 over 25 years.
I really feel that this offer is too low, but as I can only speak to call centre, I can't get anyone to explain how this figure arrived at. The notes which came with the offer only says that this is the value of the premiums paid at the date cancelled. If so, that means we only paid £6 per month for the loan ppi but £25 per month on the mortgage??
I did originally ask for a copy of my loan agreement, but after waiting 6 weeks, was then told that document no longer exists and was given £25.00 compensation for waiting for non-existing document. Because of this, I don't know if would be waste of time asking for sars.

Can I also ask if I should have been offered compensation ?

Really sorry to have made this so long, but need advice if this offer seems fair or are they just plucking a figure from air ?
Anyone who can help, thanks so much.

amersall

If the loan was over 25 years, you have to remember that you only paid 7 years of this so the remaining PPI for 18 years was not paid.
With the PPI being £6,072 over 25 years this would mean a payment each month for the PPI of £20.24 for the 300 month term,you only paid 84 of these so that adds up to £1,700 with interest.

If you have no proof of this PPI and this was a goodwill gesture you may have to accept this, you could send a Sar request and see what you get, ask for all information they hold on you and not just the loan items, what year did you take this loan out? it may be too old for any information to be left.

You need to write to them and ask how they got the information they used to get the figures of redress they are giving you and ask about the rebate of the PPI and you want the PPI back that was paid by you in the settlement after the rebate for early settlement.

With a goodwill gesture they do not have to pay the 8% compensation.

When you settled this loan you would have been given a rebate of the PPI, the remaining PPI you would have paid back to them in settlement, you need this back too, it may be in your best interests to do the Sar, you will have to let them know you are doing this as they may revoke the goodwill gesture.

Chrisht

Thanks for replying so quickly.

Think I have confused you!! The loan was for £25000 over 25 years and we settled after 7 years. The offer was £524 for paid premiums and £569 interest. This would mean that they are saying we only paid approx £6 per month in ppi payments, yet for our mortgage of £52000 we paid £25 per month. Can't understand why the ppi on loan would be that small. Thought it would have been around £10 per month at least. That's why I think it offer made as gesture and not calculation.

Took mortgage out in 1995 and loan in 1997. Have settlement figures for both.

They turned us down originally without any info from us, and stated that we did not have any per-existing illness, which in fact my partner did have and they were informed at the time, it makes me think that they don't have original documents.

I think offer is too low.

Sorry to rabbit on, but just not sure. Would appreciate your further comments. Thanks.

[Deleted User]

You didn't pay the PPI to term end, so the original agreement documentation would not be an accurate reflection of the PPI you actually paid, When you cancelled the loan early you would have received a rebate on the PPI (not a refund) which would have been included in your settlement figure.

You only receive a refund of the PPI you actually paid and the added interest IS the "compensation" you crave.

You can ask the Bank for a breakdown of how they came to their calculation of what you have been awarded.

If you still disagree with their offer you can refer your complaint to FOS, but you'll need to provide evidence that you paid more, you cannot simply say it's not enough.