PPI consequential loss rules ?

Graham_Hickey

I've been looking through the PPI redress compensation rules which sumarise that you should be put in the situation you would have been in had you not taken out the mis-sold PPI.

I had Mortgage PPI and during the monthly payment period I was running in agreed overdraught mode with my bank. With my mis-sold PPI I also have consequential costs to recover to put me in the position I would have been in before the mis-sold PPI situation.

Does anybody know any redress rules that might cater for this and their source.

Any help would be most appreciated. Thank you.

[Deleted User]

No. Redress is premiums, plus associated interest and 8% compensatory interest.

However, the above is dependent on you having been mis sold the PPI.

Nasqueron

The 8% interest is far more than you would have earned by having the money in a savings account. Assuming they do accept the MPPI was miss-sold (not clear if you have complained or if they agreed already) you would have to prove that the MPPI payment alone was the reason for any extra charges you had. It is a hard case to imagine you living so close to the edge that an insurance policy you knew would be charged each month on a certain day would tip you over as opposed to day to day unexpected costs.

[Deleted User]

Graham_Hickey wrote: »

I also have consequential costs to recover

What "consequential costs" are you referring to?

You can't possibly allege the cost of a MPPI policy alone caused you to have an overdraft! :eek:

I think you'll have to be content with the additional 8% interest you will receive to cover these costs.

It goes without saying that any refund at all is dependent upon a successful mis-selling complaint.

antrobus

Graham_Hickey wrote: »

...

I had Mortgage PPI and during the monthly payment period I was running in agreed overdraught mode with my bank. With my mis-sold PPI I also have consequential costs to recover to put me in the position I would have been in before the mis-sold PPI situation.

...

Most MPPI complaints don't succeed.

Why do you think it was mis-sold?

Graham_Hickey

I've had it confirmed that the MPPI was mis-sold. I chose to use overdraught rather than use credit cards (had them with zero balance) at the time. Overdraught was for other items as well. I know the consequential overdraught cost fpr just the MPPI payments.

The statement that when PPI is mis-sold we make it so that you are put into the position that you would have been in had you not been mis-sold PPI in the first place. That does not do what it says on the tin if consequential costs are not taken into consideration.

Thank you

dunstonh

If the MPPI premium was say £25pm and your overdraft was going over the limit each month by £10pm then you would have a case under consequential losses. However, if your MPPI premium was £25pm and you were going over by £100pm then clearly you were going over the limit whether the MPPI existed or not. So, there is no consequential losses in that case.

[Deleted User]

Graham_Hickey wrote: »

I know the consequential overdraught cost fpr just the MPPI payments.

That's not "consequential" loss. You chose to use your overdraft to fund your lifestyle. As I said earlier, you can't possibly allege that the PPI payment alone caused you to incur overdraft fees.

Graham_Hickey wrote: »

The statement that when PPI is mis-sold we make it so that you are put into the position that you would have been in had you not been mis-sold PPI in the first place.

As the Bank have agreed you were mis-sold, you'll now receive a refund of all the PPI you paid, plus 8% interest. The additional interest should more than cover the percentage of overdraft fees incurred by your PPI. So you are indeed being put back into the position you would have been in had you not bought the PPI policy.