Barclaycard not playing by the rules?

Kermit14

Put in a claim to B'card 3 weeks ago via the form from their website, on an account that had PPI from at least the early 90's until 2012.


The account was in debit most of the time and, espec towards the end, high PPI premiums due to maxing out high credit limit.

No acknowledgement rec'd, no phone contact - was about to chase up to see if they had actually received the claim when a 1-page letter arrives enclosing a cheque for £3k in "full settlement". The letter did not include any specific calculation details, just a woolly paragraph that the refund was premiums+interest refund+the statutory 8% interest less 20% tax.


I am going to ask them for full clarification (not sure how forthcoming they might be?) & compare this to the statement history I have available. If they don't co-operate I presume that's the correct time to involve FOS?


In the meantime, am I within my rights to cash the cheque?


Anyone else had something like this - are B'card allowed to try & settle claims like this without a formal acknowledgement or making an informative offer to the customer, giving them the opportunity to challenge if appropriate?


Have they even had time to actually investigate or have they decided to make an ex-gratia payment regardless. Smacks of a bit of a fob-off?


Thanks,


K

tomtontom

Surely the answer is in the statement history you have available - work out how much you believe you are entitled to and challenge their figure based on that.

dunstonh

I am going to ask them for full clarification (not sure how forthcoming they might be?) & compare this to the statement history I have available. If they don't co-operate I presume that's the correct time to involve FOS?

You generally find they are co-operative.

It is highly unlikely they have your complete history as they are known to destroy statements after about 7 years. Where they do not have statements, they are required to use your copies if you have kept them.

are B'card allowed to try & settle claims like this without a formal acknowledgement or making an informative offer to the customer, giving them the opportunity to challenge if appropriate?

yes they are. Its a good thing they have done. The process is not a haggle.

Have they even had time to actually investigate or have they decided to make an ex-gratia payment regardless. Smacks of a bit of a fob-off?

Its possible they are auto-paying out. £3k is still within the auto payout range during busy periods. Nothing you have said suggests a fob off. Maybe when you work out how much you have paid over the last 6-7 years you may have a different view or it may reinforce your view.

Kermit14

Thanks for your replies.


I'd already done some preliminary calcs which gave me cause to question the amount awarded.


Also, I wasn't aware there was such a thing as auto-payout so it all seemed a bit odd. Being too suspicious in my old age!

dunstonh

Also, I wasn't aware there was such a thing as auto-payout so it all seemed a bit odd. Being too suspicious in my old age!

Most providers have an auto-payout threshold where its cheaper just to pay out then argue the case. With the sheer volume of PPI complaints and the use of temporary staff or outside claims handlers, the costs can be quite high. So, you get this sort of floor limit where if they wont even bother checking whether the person has a case or not if the amount they would pay out is below a certain amount. That amount will change depend on workflows and can range from being quite low to quite high. There are also other methods that can lead to similar outcomes.

Chances are they have just looked at the payment history they have on file. if you have longer then contact them and supply copies to allow them to include the longer period.