Reclaimed some MPPI, but the bank took most of it back

Cronin

I recently helped my dad reclaim some MPPI back from Halifax to which he paid between the years 1997-2000. In total, the amount my dad paid came to £252.76 which I believe he should have received plus interest. However the bank reduced this number down to £62.61 by factoring in things I've never heard of, using certain calculations sent via letter.

They calculated the final sum by using the following - 'Commission and profit share rate above 50%', 'Compensatory interest' and 'Tax deduction'. All of which reduced the payment down by almost 1/5.

Has anyone else experienced anything like this? Can we refuse this offer and get the full amount he paid back as I thought this is the minimum you should get back?

Any help would be appreciated!

[Deleted User]

Cronin wrote: »

They calculated the final sum by using the following - 'Commission and profit share rate above 50%', 'Compensatory interest' and 'Tax deduction'. All of which reduced the payment down by almost 1/5.

What you describe is a Plevin refund of undisclosed commission. Such a refund is only paid if the PPI complaint has failed.
So the payment has not been "reduced" by 1/5 at all and your rejection letter will have already explained why the complaint was rejected in very plain English.

The Ombudsman won't overturn this unless you can show that the PPI was mis-sold.

dunstonh

Has anyone else experienced anything like this?

yes. Pretty much most people whose complaint has been rejected.

A rejected complaint has to then do a Plevin check to see if a part refund applies or not.

Can we refuse this offer and get the full amount he paid back as I thought this is the minimum you should get back?

If you disagree with the rejection of the complaint and feel their decision is wrong, you can refer your complaint to the FOS.

Do remember that you only get a refund if the complaint is upheld. most MPPI complaints are not upheld. And currently the FOS uphold rate on all types of PPI is just 36%. The MPPi rate would be much lower than that if they published it.

There is nothing wrong with having MPPI. You can still buy it today. There has to be a wrongdoing for it to be refunded.