Been Offered Compensation. Is it Enough?

jaysan

Hi - Just wondering if anyone can tell me if the calculation for compensation is correct. I had a Nationwide Credit Card with over £9000 of debt on it. I made a claim against the PPI and they have offered £274 - I made the claim on my own and did not use a claims company.

This is made up of Premiums Paid, Interest at card rate - They have offered no refund of over limit fess, no compensation interest at 8%

Firstly I don't know it its calculated correctly or if any of its right - Any advice please.

Nasqueron

You receive a refund of the PPI you actually paid plus 8% statutory interest. The balance on the card is irrelevant, what is key is how long the policy was running for and how long you had the balance

They are allowed to deduct the value of the claim off any refund

jaysan

There is no statutory interested added according to the calculations provided. Also I have no idea, as it was a long time ago; of how much was paid, I guess I am relying on them providing correct information. I had the card for about 5 years and there is a weird story behind how the card was provided.

Agricolae

Further information may help us give you more of an idea.

So far we know you had the card for about 5 years and - at the end(?) you had £9,000 of debt on it. You've said you claimed on the PPI, or were you referring to the complaint about how it was sold to you? The distinction is important.

I think it would be useful to know:

* Whether you had the PPI for as long as you had the card (i.e. 5 years)
* Whether you had a large balance on the card for all or some of that time.
* Whether the debt you referred to ended up being written off by Nationwide because you couldn't pay it.

Normally if you were getting PPI back on a credit card you would be refunded the premiums you'd paid, plus any interest and charges on the account you had to pay extra because of the PPI premiums. If that would have left your card in a positive balance then you 8% interest on the positive balance.

jaysan

I have no idea how long the PPI was on the card for. I know it was mercenary but I just put in a speculative claim. The card limit was £7500 and I got in a mess with it hence the £9500 (just checked) on it. The debt was sold on and became statute barred in 2004. The large balance was for a significant amount of time and the first purchase on it when I got it was for £3500 and never went down or was paid off. I do remember the monthly minimum payment was about £270 per month. The story behind the card is also a bit weird. I never applied for it, it was sent to me without me asking for it. I think they sent it because I had about £10000 in a company share save scheme they managed. This card and my bad money ethics ruined my life. The card was active around 1996/7 I think.

Should I contact them and ask them to prove the calculations?

Nasqueron

Given you've now pointed out you didn't pay your debts I'd be inclined to let sleeping dogs lie and take the money, you start digging too much and they realise you didn't pay them back and they'll offset the refund against the money you owe. Also if you don't have any records it'll be tough to get any further

Something a bit odd here though as the refund process for PPI is premiums paid + 8% interest.

Can you clarify if you made a CLAIM or COMPLAINED about PPI (they are 2 different things, despite what MSE seems to think) - a claim is when you ask the insurer to pay your bills if you can't; a complaint is saying the policy was miss-sold and should be refunded.

jaysan

I made a claim for mis-sold PPI using resolver, regarding the non payment of the debt I have asked about this and it seems when a debt is "sold" to a collector this does not absolve the original lender from mis-selling claims. The original lender is at fault and should compensate the claimant. Once the debt is statute barred it cannot be chased either by the original lender or the debt collection agency it was sold to.

[Deleted User]

jaysan wrote: »

Once the debt is statute barred it cannot be chased either by the original lender or the debt collection agency it was sold to.

That works in reverse too. It cannot be chased by a borrower who failed to repay either.

-taff

jaysan wrote: »

This is made up of Premiums Paid, Interest at card rate - They have offered no refund of over limit fess, no compensation interest at 8%.

They are not obliged to offer over limit fees, these fees are not PPI.

Interest of 8% is only given if the card would have been in credit if the PPI payments and interest added on those would have put your card in credit.

The debt is not necessarily 'sold', it is usually passed to an agency who collect on behalf of the bank.
This means any redress you are owed can still be taken back by the bank as you obviously had amounts in arrears.

Owing a significant amount for a long time doesn't have any bearing on the amount of PPI paid, as if you defaulted on it pretty quickly, you won't have paid that much.

When did you have the card from, how was it sold to you, when did you default on it.

Agricolae

I think ultimately the best thing to do in this scenario may be to ask them to provide their calculations.

The figure they've gone with is somewhat bizarre considering the situation with the account (unless, as has been said, you defaulted on it quickly and the PPI was cancelled).

Edit: Overlimit fees could, theoretically, be caused by the monthly PPI premium being posted to the account. I would have thought the reasonable thing for a bank to do would be to look at each month and if the account went overlimit by less than the PPI premium charged that month, the overlimit fee is refunded.

-taff

For the debt to be statute barred in 2004, it had to have been defaulted on in 1998 at a minimum.
We have no idea how quickly the limit was reached because we don't know when the card was sold.
If they had it six months and racked it up to 8,000 in six months then defaulted, that could account for the 274.