MSE News: PPI mis-selling victims 'could have been underpaid by £1bn'

There could be a £1 billion shortfall in the compensation received by complainants, according to an investigation...
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PPI mis-selling victims 'could have been underpaid by £1bn'
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  • Ronaldo_Mconaldo
    Ronaldo_Mconaldo Posts: 5,197 Forumite
    Does anyone else resent the word "victims" being used here? The whole thing is obviously some kind of government sponsored cash giveaway to keep the economy moving by giving money away to people who didn't bother to read the small print. "Victims" of their own ignorance more like.
  • jellie
    jellie Posts: 884 Forumite
    First Anniversary Name Dropper First Post
    Does anyone else resent the word "victims" being used here? The whole thing is obviously some kind of government sponsored cash giveaway to keep the economy moving by giving money away to people who didn't bother to read the small print. "Victims" of their own ignorance more like.

    It'll also help the economy by keeping claims management companies in business, as they'll have yet another excuse to charge people a fortune for writing rubbish template letters.
  • colonelsensible
    colonelsensible Posts: 11 Forumite
    edited 9 June 2014 at 9:45AM
    Resent is a very harsh word. If people who don't know their way around the intricacies of PPI, and have been taken in by the banks, then "victims" seems to be an accurate description of their situation.

    (Text removed by MSE Forum Team)
  • MBNA: "Fees of this nature are required to be refunded when they are 'caused' by the mis-sale of PPI. Not all credit card fees and charges are the same between issuers and there are aspects of MBNA's fees and charges and the way they are charged (or not charged) which are highly relevant to whether MBNA might be liable to refund them.

    "Our system operates so that the cost of PPI is only applied after the customer has gone over limit and after the over limit fee has been applied. As such, PPI could never cause our customers to be over limit or cause the fee to be applied."


    Hmm. I think this has the following consequence:

    If you add charges before you add PPI, you will reduce the number of occasions that the removal of PPI and associated interest results in the reconstructed account having a credit balance and so reducing the number of occasions the 8% simple interest is added. Overall this will understate the amount of PPI redress due to the consumer.
    I welcome correction/confirmation of this.
  • minichick
    minichick Posts: 23 Forumite
    has anyone done anything about this? ive jsut written off to Barclaycard and Capital One but doubt i will be due any further refund but worth asking?
  • justanon
    justanon Posts: 13 Forumite
    minichick wrote: »
    has anyone done anything about this? ive jsut written off to Barclaycard and Capital One but doubt i will be due any further refund but worth asking?

    With regards B/card, please refer to my post here at :

    moneysavingexpert.com/showthread.php?t=4978557&highlight=

    As a new user, I unable to post direct links to my previous MSE posts. Just use your 'imagination' to work out what I am referring to.

    IC4 is a joke ! I and all of the other B/card complaint handlers think like this. I am amazed that B/card let this go live. It is totally unfit for purpose.

    Anyway just challenge B/card and see what happens. Please post back your response from B/card.
  • fabforty
    fabforty Posts: 809 Forumite
    I have just received a letter from MBNA saying that the PPI compensation that I received in 2012, was incorrect due to an administrative error and I am owed an additional £341(including interest). Payment will be received within 28 days. No idea how this has been calculated or if this figure is accurate, but as I wasn't expecting anything back, I will just treat it as a bonus.:)
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