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PPI Redress being revisited after FOS complaint

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ToonExile
ToonExile Posts: 16 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 3 March 2019 at 8:31PM in Reclaim PPI & other insurance
In August 2018 I had my complaint against Barclay card upheld for my PPI Insurance held on my Barclay card from 1992 until 2004, the card continued without PPI from 2004 to 2011.

I was unhappy with the redress offered as I knew that this card would have had an average balance of around £2400 a month during the period up to 2004.

Barclay card offered me compensation which was inadequate. They stated as they had no records of my account previous to May 2004 (my PPI was stopped in April 2004, I found that to be a little too convenient that all my statements prior to May 2004 had gone missing), that they had created an offer based on historical averages for a typical customer.

I wrote to Barclay Card asking them to reconstruct the balance on the card from Nov 1992 to Apr 2004 based on my spending patterns on the same card from May 2004 to Nov 2011. They refused to do so. As a consequence of this refusal I contacted the FOS. At the same time I raised a GDPR request which I received in due course with statements from May 2004. I passed these statements to the FOS as part of their investigation.

I have now received the FOS adjudication. The adjudication states that Barclay Card have acted unfairly in this instance and need to reconstruct my credit account from 1992 to 2004 using an average balance of my card between Apr 2004 and Feb 2007 when my credit limit increased. They are to use the average balance as the starting point and then work on reconstructing the account from that point.

My question is what methodology will they use as I can find nothing indicating how a calculation will be done in these circumstances either on the FCA or FOS websites.

I do have a copy of the FCA Handbook 10/12 which has working examples of how to calculate PPI in most instances, but I am afraid not in this situation.

I would like to be able to work out what is likely to be a fair and reasonable offer from Barclay Card if and when it arrives.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    ToonExile wrote: »
    My question is what methodology will they use as I can find nothing indicating how a calculation will be done in these circumstances either on the FCA or FOS websites.
    Clearly they'll be working on an average based on whatever documentary records (from May 2004? )still exist of your usage of the credit card.
    ToonExile wrote: »
    I would like to be able to work out what is likely to be a fair and reasonable offer from Barclay Card if and when it arrives.
    I can't see any way in which you could check this. However, the Bank will provide a thorough breakdown of their calculations if you request such additional information if and when your amended offer arrives..
  • ToonExile
    ToonExile Posts: 16 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    So I really need to take Barclays on trust or will they give me breakdown of the numbers they come up with as well as their method for getting there. Mmmmmm!!
  • Bermonia
    Bermonia Posts: 977 Forumite
    500 Posts
    As your complaint is with FOS then any redress offered will be required to meet FOS requirements.
  • ToonExile
    ToonExile Posts: 16 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I am afraid the information I am trying to find out is what are the FOS requirements, they are not documented on their website for cases like mine.

    I want to be able to work out what the ball park figures should be for my redress. If I can't do that I am at the mercy of whatever Barclays decide.
  • Bermonia
    Bermonia Posts: 977 Forumite
    500 Posts
    No you are at the mercy of Barclays legal obligations... which have been defined by FOS to Barclays, as such the redress offered to you will meet FOS’ standards.
  • ToonExile
    ToonExile Posts: 16 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    How do I know that.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Because the consequences are far to high for them to try to diddle you out of thirty quid.
  • ToonExile
    ToonExile Posts: 16 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Because the consequences are far to high for them to try to diddle you out of thirty quid.

    I doubt it is thirty quid I suspect it is many thousands of pounds. On a further point why should I trust Barclays to follow the FOS recommendations.

    When I asked them to reconstruct my credit card balance based on the information they do have which is significant they refused to do so.

    When I pointed out the following information from the FOS own website they still refused to do so.
      • asking the consumer if they have any records of their account (perhaps credit card statements) that would help the business calculate the consumer’s loss;
      • if there is still a gap in the records, taking what is known about the consumer’s credit card account - and their behaviour during the period for which it does have records - and making reasonable assumptions based on that information about what would have happened to the consumer’s credit card account for the period it does not have records.
      • When making reasonable assumptions, a business might want to take into account some of the following factors:
      • the consumer’s actual spending and payments over some or all of the period for which it does have records;
      • how its customers generally operated their accounts over the period for which it does not have records;
      • the average credit limit of its customers over the period in question;
      • its knowledge of how its customers generally behave.


      They completely ignored the highlighted items from this list to get the best result for Barclays and not myself. The only items from these recommendation they used were the first and last bullet points.

      So again why would I take Barclays at their word!
    1. [Deleted User]
      [Deleted User] Posts: 35,242 Forumite
      Part of the Furniture 10,000 Posts Photogenic Name Dropper
      Then you have no reason to take anyone at their word for anything, as the same principles apply.

      Action and consequence.
    2. -taff
      -taff Posts: 15,368 Forumite
      Part of the Furniture 10,000 Posts Name Dropper Photogenic
      You ask them for a full breakdown of how they got their figures and if you're unhapy you go back to the FOS


      No-one here can help you any more than they already have..
      Non me fac calcitrare tuum culi
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