Santander PPI claim - interest query

goaten2000

Hi

My wife claimed PPI from Santander for an old Cahoot Flexible Loan. Santander have responded with an offer which does not appear to include the statutory interest I received on my previous claim.

The offer breakdown is (exactly as worded on the letter)

A: Full refund of PPI payments - £1753.75
B: Associated Interest - £260.53
C: Total offer amount (A+B) - £2015.28

Then follows a statement that says:

On a rolling line of credit account such as your Cahoot Flexible Loan, 8% out of pocket interest is only applied if the loan would have had a credit balance had the PPI not been included. Your loan would not have been in credit had PPI not been applied, therefore 8% out of pocket interest has not been offered. This is in line with the requirements of the Financial Ombudsman Service and the Financial Conduct Authority. As no 8% out of pocket interest has been awarded, no HMRC deduction has been necessary.

Can anyone explain this in layman's terms?

Thanks in advance for your help.

-taff

You weren't paying enough off the balance to be in credit despite paying the PPI.