Help with PPI offer and calculation

pcassie

We borrowed a total of £183,292 mortgage in November 2005, and applied for the Loan through Central Capital , GE money approved the mortgage, over 20years , the loan is still active.
the PPI sold through Central Capital Limited was a single PPI premium of £6197.12. the total amount payable for this insurance was £10,389,60. I still have the PPI insurance certificate ,issued by Wessex group, which expires november2010 , and confirm single premium of £6,197. I wrote to Central capital re mis-selling but received a total of 3 rejection letter from them ,

I contacted the FOS who ruled in my favour and waited for 8 weeks for Central Trust response

I got an offer of redress from Central Trust today, a total of £8,728,78, the calculation is PPI payment £3,694 plus £1,321,19 of 8% interest tax on interest £264.24 , subtotal = £4,751.51. Then a further £3,977.27 was added to reschedule the loan going forward without the cost of PPI, making a total amount of redress to £8, 728,78. They claimed that they are unable to fully restructure the loan without the cost of the PPI cover going forward due to previous arrears on the account, therefore in accordance with DISP App 3.7.41 (a) (ii) they intend to make the entire redress payment directly to me, in accordance with DISP 3.7.41b. Please advice me if this information is correct , or shall I contact the Financial Ombudsman again

[Deleted User]

The Bank can certainly offset redress against finance which is in arrears or has defaulted.
http://www.moneysavingexpert.com/banking/setting-off

AnnaKoch

Thanks for posting this kind of information,i really get more useful information,

amersall

How much are the arrears and could you repay them from the redress and ask for the whole PPI to be removed from the loan?.

They have to take the whole PPI off the loan to put you back in the position you would have been had you not had PPI, I don't really understand , even with arrears that they have not done this, they could have taken arrears off with the redress, I would send this to FOS and see what they say as you will still have the whole PPI on the loan to term end with interest and this will cost thousands over the remaining term.

Has the loan defaulted?.

pcassie

Thanks for your response, I am not currently in arrears , the account went into arrears back in 2009, but payment has been up to date since 2012 and recent statement shows I now owe £120,000.

amersall

Send it to Ombudsman as I said previous, if loan is now up to date they should remove the whole PPI from the balance, the arrears have nothing to do with this.

If you are happy to keep the redress, then do that.