PPI Claim upheld but with no interest??

hazzygirl

hello everyone hoping I can get some advise please....
I received a letter today from Capital One re my PPI claim which they have agreed to uphold. They have made me an offer and supplied the following breakdown.

£472.13 PPI Premiums
£0.00 Charges
£121.76 Associated Interest
£0.00 8% Interest
-£0.00 TAX (on the 8%)
£593.89 Total Refund

I was under the impression that the 8% interest had to be paid? and also that I should be refunded any interest and fees charged on the actual PPI premiums? (I'm basing this on a successful Barclaycard claim and their breakdown) Am i wrong, i'm getting so confused! but don't want to return the settlement letter until I'm sure

magpiecottage

They rework the account as if no PPI was charged. This means that any interest charged on the PPI premium is reversed. That is the £121.76.

If, without the PPI, you would have been in credit at any time then an 8% interest payment is made to you. The 8% is taxable, the same as it would be in a deposit account.

In your case, it sounds as though you would have been in the red throughout so there was never a credit balance on which interest would have been paid.