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Halifax PPI claim offer - could it be flawed
nisider
Posts: 1 Newbie
Folks
I'm new so if this question has already been dealt with, sorry for repetition.
My claim to Halifax for missold PPI with a credit card taken out in 2002 and then closed in 2012, has been upheld. The credit limit was between £4000 and £6500 during the lifetime of the agreement and the balance was not frequently below £2500. Generally the minimum payment was being made.
The offer is for a total of £634.64, with the following breakdown:
Difference between payments (with/without PPI) at 30 Sept 2012: £286.18
+ Difference in payments (actual with PPI vs assumed value had PPI not been taken): £183.98
+ Compensatory interest calculation: £205.59
- Tax £44.11
The final date of the card account is given (date above), but not the start date (2002).
I'm puzzled at how this calculation has been reached. Is is correct (or incorrect) to correlate the payments value of £286.18 as roughly the value of the premium ... thus over 10 years, the 'income' to Halifax is being reckoned at approx £30/yr? If so, this seems extremely low and not in line with the charge of c9% per £100 balance that I have read about.
Could there be an error in Halifax's reckoning, in which they have just used one year, rather than the lifespan of the product?
A previous PPI claim from Cahoot (Santander) for a £10k loan flexibly paid back over a six year period yielded a dazzling £14,000 payment. Another (more recent) claim from Halifax for a loan of £5k, paid back over 11 months, was also upheld and the offer was c£625.
It's possible I am unrealistically measuring expectations against these experiences but am unsure what basis is applied for calculation and if credit cards are reckoned differently.
My intention is to call Halifax tomorrow to seek further information as I believe this offer value not to be correct. However if anyone reads this in the next 12 hours or so and can offer advice/comments from their experience I would be grateful. Thank you.
I'm new so if this question has already been dealt with, sorry for repetition.
My claim to Halifax for missold PPI with a credit card taken out in 2002 and then closed in 2012, has been upheld. The credit limit was between £4000 and £6500 during the lifetime of the agreement and the balance was not frequently below £2500. Generally the minimum payment was being made.
The offer is for a total of £634.64, with the following breakdown:
Difference between payments (with/without PPI) at 30 Sept 2012: £286.18
+ Difference in payments (actual with PPI vs assumed value had PPI not been taken): £183.98
+ Compensatory interest calculation: £205.59
- Tax £44.11
The final date of the card account is given (date above), but not the start date (2002).
I'm puzzled at how this calculation has been reached. Is is correct (or incorrect) to correlate the payments value of £286.18 as roughly the value of the premium ... thus over 10 years, the 'income' to Halifax is being reckoned at approx £30/yr? If so, this seems extremely low and not in line with the charge of c9% per £100 balance that I have read about.
Could there be an error in Halifax's reckoning, in which they have just used one year, rather than the lifespan of the product?
A previous PPI claim from Cahoot (Santander) for a £10k loan flexibly paid back over a six year period yielded a dazzling £14,000 payment. Another (more recent) claim from Halifax for a loan of £5k, paid back over 11 months, was also upheld and the offer was c£625.
It's possible I am unrealistically measuring expectations against these experiences but am unsure what basis is applied for calculation and if credit cards are reckoned differently.
My intention is to call Halifax tomorrow to seek further information as I believe this offer value not to be correct. However if anyone reads this in the next 12 hours or so and can offer advice/comments from their experience I would be grateful. Thank you.
0
Comments
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Check the start and end dates of your policy. PPI policies do not always run from the start of the card account to the end, they can be and often are taken out mid-term and/or cancelled early.0
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