PPI Reclaiming successes and failures

smitchy73

ThunderCat wrote: »

My letter said exactly the same. Although in my case the refund is for a credit card which still has an active balance. So I guess they will apply the same method in this case too. Shame as I would rather have had the dosh sent straight to my bank account so that I could have split it between other smaller debts as well.

Thundercat, if you're CC isn't in arrears then they have no right to apply any redress to the balance, this is just their way of reducing your debt by not giving it to you to do as you see fit. This is part of the FSA handbook FS10/36

[FONT=TimesNewRoman,Bold]

"3.9 Other matters concerning redress

[/FONT]

3.9.1 G Where the complainant’s loan or credit card is in arrears the [FONT=TimesNewRoman,Italic]firm [/FONT]may, if it has
the contractual right to do so, make a payment to reduce the associated loan or
credit card balance, if the complainant accepts the [FONT=TimesNewRoman,Italic]firm’[/FONT]s offer of redress. The

[FONT=TimesNewRoman,Bold][FONT=TimesNewRoman,Bold]

FSA 2010/36

[/FONT][/FONT]

Page 13 of 14

[FONT=TimesNewRoman,Italic]

firm [/FONT]should act fairly and reasonably in deciding whether to make such a

payment."

In other words if you're not in arrears they should pay the money directly to you.
Also if they say they can put it on your card and you can withdraw it from there, don't be fooled as they'll charge you for the cash withdrawals, and charge you the relevant interest on the withdrawal, so if you really want it in your bank or by cheque tell them this.
However, if you have arrears, thats a different story, and if you read the exerpt from FSA, they can only take the redress to pay off arrears if it's in the contract, so double check if it's that.
Hope this helps.:D

ThunderCat

Thanks for the advice smitchy (I wish the banks were as quick in answering my queries ). Much appreciated There are no arrears on my balance, so I will let you all know if the money reaches my account or not!
I'll throw the FSA handbook at them if they decide to mess me around. :rotfl:

allofushere

How do the banks work out interest on a refund for credit card PPI?

Also, if I have an agreed overdraft with the bank, would they be able to pay it into my account and then instantly reduce my overdraft? I m worried that any money I get will be put towards either my loan, my overdraft or my card debt and I wont see a penny. I am not in arrears with any of these payments, however a couple of months ago I rang them to say I did not think I could pay my cc bill that month, (stupidly thinking that honesty and being up front would work in my favour). BUT... They instantly put a stop on my card account. I did in fact manage to pay the monthly payment and have done ever since, but my card is still on stop. Have I got any chance of seeing any of my PPI refund when I get it????? And can they keep my card on stop if I have always paid my monthly payments?

smitchy73

allofushere wrote: »

How do the banks work out interest on a refund for credit card PPI?

Also, if I have an agreed overdraft with the bank, would they be able to pay it into my account and then instantly reduce my overdraft? I m worried that any money I get will be put towards either my loan, my overdraft or my card debt and I wont see a penny. I am not in arrears with any of these payments, however a couple of months ago I rang them to say I did not think I could pay my cc bill that month, (stupidly thinking that honesty and being up front would work in my favour). BUT... They instantly put a stop on my card account. I did in fact manage to pay the monthly payment and have done ever since, but my card is still on stop. Have I got any chance of seeing any of my PPI refund when I get it????? And can they keep my card on stop if I have always paid my monthly payments?

Refund of interest first. Basically the first charge of ppi to your account will be taken off your bill at the original date, you should then get a refund of the interest which was charged by your card supplier(say 15%), if, when this is taken off your balance, and you end up in credit then you get 8% on that amount back to when it was in credit. However, if you're account is not normally paid off then you should get back just the ppi amount plus any interest charged on it at the card's rate back to when it was added to your account. This should happen to all ppi charges on your CC account( so 2nd month, 3rd, 4th and so on). The plus side to this is that most cards are charging more than 8% interest so you're getting back what you were billed for, but nothing more. This is to put you back in the position you would've been in if ppi hadn't been charged to your account.
Just as further info, check your account details, as some minimum payments breakdown work along the lines of paying off 1% of balance, ppi premium + charges + interest for that month, so in effect because you're paying off the ppi charge for that month you're not actually paying interest on it.
As for your account and card stop in place, if you didn't miss your payment the bank should lift the stop notice, although a call to customer services should fix that.
As for your overdraft, if they pay this directly to your account, then in theory yes they could take away your overdraft facility once the redress is refunded to your account, but they could do this at any time, even just as your wages get paid in, and then refuse all your direct debits which would normally come out of your O/D.
In this case you may be better asking for a cheque and pay it in to a different account if you have one.

Although in good MSE sense, if you have credit card debt which is on a high interest, and overdrafts which sometimes charge per day you're overdrawn, this can work out quite expensive and it's sometimes not a bad idea to pay these off.

We just got refund back from Clydesdale and paid off a £5k CC with bank of scotland, which incidentally also have a ppi complaint in against with a decision due in October, so if we get a refund they have to give it straight back to us. We could've paid off three loans we have for the same money which are all due to finish next year and reducing our outgoings by about £300, however, when we looked at how long the card would take to pay off even at £300 a month it was into decades, so we done the wise move and paid the CC knowing that at worst loans will be finished next year and we have the extra from the CC payment each month.

Hope this helps:D

pnash1981

Hi HSBC have agreed to pay me a whopping 4.5k. Does anyone know how long it takes them to pay up once you accept the offer? Thanks

dombo17uk

Hi peeps,

I'm a first time poster, so please bare with me, hope I'm doing it right!!

I registered two PPI complaints with Egg four weeks ago. One was for my credit card, the other for four loans I had with them. I called last week on the off chance to see if there was any progress andd I was informed my complaint had been upheld! I could't believe it. It was so simple to do, just one phone call and no questions asked, have had a nice cheque through the post yesterday! When I spoke to someone on the 'phone, he told me the total amount for both loan and credit card would be £2985.51! I was assured that the letter would be sent out within 7 - 10 working days and like I say, they have both landed on door mat, a cheque for the loan of £2807.47 and a cheque for £178.04 for the credit card. I confirmed with the chap on the 'phone that the full breakdown of figures would be in the letter, but they weren't. Just one more call solved that and I now have a full breakdown. I wounder if one of you cleaver people would be kind enough to make sure I've not been done out of anything?

Loan 1
Taken on 30/06/04, due to run until 21/07/05
Loan amount - £3000
Total amount - £3261.45
PPI - £261.45
Loan terminated 26/11/04 (got a top up loan from Egg)

Loan 2
Taken on 17/12/04, due to run until 01/01/2009
Loan amount - £3103.30
Total amount - £3699.01
PPI - £595.71
Loan terminated 01/02/2005 (got another top up loan from Egg)

Loan 3
Taken on 01/02/2005, due to run until 01/03/2010
Laon amount - £3781
Total amount - £4684.09
PPI - £903.09
Loan terminated on 13/03/2006 (yet another top up with Egg)

Loan 4
Taken on 13/03/2006, due to run until 27/11/08
Loan amount - £7452
Total amount - £8660.64
PPI - £1208.64
Loan finally finished on 27/01/2009 (I must have taken a two month payment holiday!)

Does the amount of £2807.47 sound right?!

Also, had a break down of my credit card which I had from July 2003 - Feb 2005. The standard APR was somewhere between 12.9 - 16.9% (he couldn't tell me the exact APR), but the monthly standard rate was 1.167%.

The balance was the following-

Aug 2003 - £70.19
Sept 2003 - £1111.87
Oct 2003 - £919.09
Nov 2003 - £1102.57
Dec 2003 - £1081.96
Jan 2004 - £1148.22
Feb 2004 - £1129.13
Mar 2004 - £1005.22
Apr 2004 - £1173.47
May 2004 - £1157.18
Jun 2004 - £1209.25
Jul 2004 - £64.87
Aug 2004 - £509.04
Sept 2004 - £696.59
Oct 2004 - £329.28
Nov 2004 - £550.87
Dec 2004 - £940.04
Jan and Feb 2005 - no balance!

Like I say, they have offered me £178.04 for the card, is this about right?!

Sorry for such a long post, but thank you so much to everyone for their support.

Cheers!:beer:

LynK_3

smitchy73 wrote: »

Refund of interest first. Basically the first charge of ppi to your account will be taken off your bill at the original date, you should then get a refund of the interest which was charged by your card supplier(say 15%), if, when this is taken off your balance, and you end up in credit then you get 8% on that amount back to when it was in credit. However, if you're account is not normally paid off then you should get back just the ppi amount plus any interest charged on it at the card's rate back to when it was added to your account. This should happen to all ppi charges on your CC account( so 2nd month, 3rd, 4th and so on). The plus side to this is that most cards are charging more than 8% interest so you're getting back what you were billed for, but nothing more. This is to put you back in the position you would've been in if ppi hadn't been charged to your account.
Just as further info, check your account details, as some minimum payments breakdown work along the lines of paying off 1% of balance, ppi premium + charges + interest for that month, so in effect because you're paying off the ppi charge for that month you're not actually paying interest on it.
As for your account and card stop in place, if you didn't miss your payment the bank should lift the stop notice, although a call to customer services should fix that.
As for your overdraft, if they pay this directly to your account, then in theory yes they could take away your overdraft facility once the redress is refunded to your account, but they could do this at any time, even just as your wages get paid in, and then refuse all your direct debits which would normally come out of your O/D.
In this case you may be better asking for a cheque and pay it in to a different account if you have one.

Although in good MSE sense, if you have credit card debt which is on a high interest, and overdrafts which sometimes charge per day you're overdrawn, this can work out quite expensive and it's sometimes not a bad idea to pay these off.

We just got refund back from Clydesdale and paid off a £5k CC with bank of scotland, which incidentally also have a ppi complaint in against with a decision due in October, so if we get a refund they have to give it straight back to us. We could've paid off three loans we have for the same money which are all due to finish next year and reducing our outgoings by about £300, however, when we looked at how long the card would take to pay off even at £300 a month it was into decades, so we done the wise move and paid the CC knowing that at worst loans will be finished next year and we have the extra from the CC payment each month.

Hope this helps:D

I am trying to grasp this, unfortunately maths was never my strong point.
Do you mean for example with my B/card on 24th Sept 1996
My balance from prev statement was £3625.91
Interest charged was £60.84 monthly interest rate was 1.61%
PPI was £25.90
I paid £180 which left the balance at £3727.68 (I had used the card)
but
on 25th October 1996
My balance from previous statement was £3967.24
on 30th October I paid £150.00
and on 5th Nove I paid £3,100. (must've got a loan)
PPI was £6.52
Interest £32.80
which left the balance at £937.41
Monthly interest rate was 1.61%
so do you mean if my claim was upheld I would be due interest on the payments I made eg the £3,100??

Sorry to be so stupid but as I say I am completely thick at Maths, that's why I chose a career that involved English only !:)

smitchy73

LynK wrote: »

I am trying to grasp this, unfortunately maths was never my strong point.
Do you mean for example with my B/card on 24th Sept 1996
My balance from prev statement was £3625.91
Interest charged was £60.84 monthly interest rate was 1.61%
PPI was £25.90(you'd be due the interest on this amount)
I paid £180 which left the balance at £3727.68 (I had used the card)
but
on 25th October 1996
My balance from previous statement was £3967.24
on 30th October I paid £150.00
and on 5th Nove I paid £3,100. (must've got a loan)
PPI was £6.52(and on this amount)
Interest £32.80
which left the balance at £937.41
Monthly interest rate was 1.61%
so do you mean if my claim was upheld I would be due interest on the payments I made eg the £3,100??(NO)

Sorry to be so stupid but as I say I am completely thick at Maths, that's why I chose a career that involved English only !:)

You're not stupid, just need to learn the FSA handbook!!:eek:

You're due the above(in red) but your due the interest which was charged on your ppi charge on each and every month that it was applied to your account, unless of course the account's minimum payment is set up to pay for example 1%+ppi + monthly interest+any late payment charges, some accounts are just 1%+ monthly interest+any charges.

Hope this helps:D

smitchy73

LynK wrote: »

I am trying to grasp this, unfortunately maths was never my strong point.
Do you mean for example with my B/card on 24th Sept 1996
My balance from prev statement was £3625.91
Interest charged was £60.84 monthly interest rate was 1.61%
PPI was £25.90(you'd be paying 1.61% interest per month on this ppi charge)
I paid £180 which left the balance at £3727.68 (I had used the card)
but
on 25th October 1996
My balance from previous statement was £3967.24
on 30th October I paid £150.00
and on 5th Nove I paid £3,100. (must've got a loan)
PPI was £6.52(as above 1.61% interest per month)
Interest £32.80
which left the balance at £937.41
Monthly interest rate was 1.61%
so do you mean if my claim was upheld I would be due interest on the payments I made eg the £3,100??

Sorry to be so stupid but as I say I am completely thick at Maths, that's why I chose a career that involved English only !:)

The above is just to add that interest rate is per month!!!

This is why some people who have had endless months and years with a high balance on their credit cards have been getting refunds into £20k+:eek:

di3004

devotee wrote: »

I got a settlement for BC PPI today, just over £3k!!!!! I thought I'd probably get a couple of hundred pounds, so this was a nice surprise! Now I just need to get on MBNA's case!
Good luck everyone!

Fantastic!:T Congratulations!:beer: