PPI Reclaiming successes and failures

bflare

Hi all,

I posted last week regarding emailing the CEO of Barclays. I received a response by letter acknowledging the date of my initial complaint letter which they say was received on 5th May 2011. In the letter it also says they contacted me on the 31st May to explain that the process was taking a little longer than anticipated. It says that my complaint is still been investigated but there is no mention of the 2 letters I received on the 22nd June explaining that Barclays will reply to my complaint no later than the 17th & 25th August (2 complaints). My question is should I email the CEO again to remind them of the 2 dates in August, one is next Wednesday, or just leave it?

Judi_Woodward

Applied for repayment of PPI in October 2010 for an old Lombard loan and received notification at the weekend that a settlement is imminent. My husband said I was wasting my time in the first place and the many holding letters we received seemed to bear this out - but having patience has paid off big time. We are now waiting for Black Horse to settle, we bought a suite from CSL and half way through paying it I realised that they had sneaked on the PPI - it was never even mentioned at the purchase stage we were just given a repayment figure and asked if we could afford it. I complained to Black Horse and cancelled the policy though we had already made payments to the tune of £1,500 and CSL didn't even acknowlege the letter we sent to their head office. Now patiently awaiting our money back........

Dizzywithmoney

Just spoke to someone regarding the First Plus claims!! Have been told that the offer letters have started to go out this week and there will be an acceptance letter with them to return and then they have 6-8 weeks to pay this out!! I said I thought that payment had to be made by 31st August and he replied that just the offer letters had to be out by this time!!!

caroled_2

ianc many thanks for explaining that for me.
I am a bit anoyed this morning with hfc!
I had a letter on 1st august telling me my claim had been upheld and my settlement was being dealt with promptly, i have just telephoned for an update and been told it will be dealt with by 31st august! So this letter is just another fob off!!
iam now going to email the boss and tell him what i think again as he has not replied to my previous emails,will let you know if i get a reply

offcumden

Derwent wrote: »

Credit card redress doesn't work in the same way as those calculator tools so they can be misleading.

What the bank have to do is completely reconstruct your account from the point you started paying PPI. They need to take out the premiums and the interest charged on those premiums and come up with a completely new balance each month for your card, which in turn gives a new interest figure that you should have been charged.

In simple terms, the amount paid to you as redress should be the difference between your current credit card balance and what the balance would have been if PPI had never existed on it.

As for the 8% simple interest, you only get that for any monthly balances where you were in credit. So if by taking PPI & interest out it leaves you with a balance one month of -£1000 then you get 8% on that £1000. But if after taking PPI and interest out you have a balance the next month of £1000 debit then you don't get interest for that month.

Its all very complicated, but some banks have been taking the simple route of just adding up the PPI premiums and adding 8% interest on the that figure, which gives a much lower amount to be paid back to you.

Derwent
Many thanks for your comprehensive answer, I fully accept your point in the paragraph I have highlighted.
I was refering to the 8% interest the courts would have put on the payments had the case gone to court and which you refer to the banks paying in your last paragraph.
My intention in putting in the calculator link was intended to try to help the numerous questions being posed as to how much could people expect to receive.
Would it be better to use the calculator tool as a benchmark indicator to give a worst case senario and that if the bank offers below that then it is likely that the offer is one that the bank is hoping will be accepted.
If I remember correctly I think it was one of your early posts where the comment was made by a bank that the offer was not usually challenged.
Thanks to your posts and the results you have achieved I will definitely be referring any credit card offer that does not include culmative interest to the Fos as, as you have proved the cumulative interest will far outstrip the simple 8% they are offering

IANC

Dizzywithmoney wrote: »

Just spoke to someone regarding the First Plus claims!! Have been told that the offer letters have started to go out this week and there will be an acceptance letter with them to return and then they have 6-8 weeks to pay this out!! I said I thought that payment had to be made by 31st August and he replied that just the offer letters had to be out by this time!!!

This is the case I'm afraid.

They only have to uphold or reject the complaint by the 31st of 16 weeks (depending on when you sent the complaint).

They can take upto 8 weeks to make payment I think.

alastair1982

Many thanks to Offcumden and Derwent for the replies and info, it's greatly appreciated. I'm certainly very vigilant of what i think they'll try and get away with. I've been doing my reading and have spoken to the adjudicator at the FOS about this and it has been confirmed that the basic they have to do (and will try I'd imagine!) is to pay the premiums back plus 8% interest. This is what I'm expecting from them, but I'll be querying for sure where the compound interest is if i don't see it in the breakdown.

My view of it is that I wouldn't have been paying more on monthly mimumum payments/interest charges had the PPI not been on the card and compounded/rolled over month by month, year by year.

Derwent, am I right in thinking from what you said, that once the PPI plus any associated interest from that payment has been taken off for it's associated month, they then have to refund me 8% on the outstanding balance for that month? In the case of the £1000.00 balance on the card, that would amount to £80?

offcumden

alastair1982 wrote: »

Many thanks to Offcumden and Derwent for the replies and info, it's greatly appreciated. I'm certainly very vigilant of what i think they'll try and get away with. I've been doing my reading and have spoken to the adjudicator at the FOS about this and it has been confirmed that the basic they have to do (and will try I'd imagine!) is to pay the premiums back plus 8% interest. This is what I'm expecting from them, but I'll be querying for sure where the compound interest is if i don't see it in the breakdown.

My view of it is that I wouldn't have been paying more on monthly mimumum payments/interest charges had the PPI not been on the card and compounded/rolled over month by month, year by year.

Derwent, am I right in thinking from what you said, that once the PPI plus any associated interest from that payment has been taken off for it's associated month, they then have to refund me 8% on the outstanding balance for that month? In the case of the £1000.00 balance on the card, that would amount to £80?

I think thats the case however if the month it applied to was in march 1999 for instance the £80 would now be circa £385
4450 days x £1080 x 8% = £385 + £1080 Thats if I'm correct of course
Pity Derwnts offline but I'm sure he be able to correct if it not right

alastair1982

By the looks things then, it could be quite a large refund or am I getting my hopes raised?

cazzieblueeyes

just had £5k refund from HSBC loan taken out in late 1970's. Took 6 months to process but got paid it in the end-interest and original payments etc.!!