I got PPI, But Capital One kept it!

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
13 replies 1.5K views
GillBrennanGillBrennan Forumite
5 Posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
OK, I’m confused…

I wonder if someone can decode what I’ve been sent.

Brief History…

So I wasn’t going to do PPI as I never had it.
I was going to get a firm as it was too complicated… but I didn’t
My partner eventually persuaded me to go back to my mum’s and into the loft where all my paperwork was.
I found quite a few credit card statements with PPI on them - oh dear, seems I had not paid attention back then.
I used the Resolver in its most basic form to send the email to firms and waited…

Capital One were first to respond, first a letter saying we’ve got it and how committed they are… then a letter saying were upholding my complaint - Wow, great... well, kind of.

It was a five page beast outlining PPI, charges, interest and the 8% on all that - minus tax.

For me this comes to: £1682 - WOW - not bad for someone who wasn’t going to as they didn’t have any :/

However… THIS is my confusion the next paragraph says:

“We have applied £1682.96 to the account in reduction of any over limit amount or defaulted balance on the account.”

Eh? What does this mean? There is no cheque, we’re keeping it?

This seems like a way for banks to make money on PPI - they've put money aside from PPI but in my case they are keeping it - basically doing an internal PPI transfer!

They do go on to say:

“If there are financial difficulties that we are unaware of and the redress is required to pay priority debts, such as a mortgage, please provide us with evidence of the same so we can consider this position.”

Which is why I think this means they are keeping it.

I could possibly argue if I didn’t pay all the PPI in the first place I wouldn’t have been in the mess I got myself into! On various cards I had at the time - that I found in the loft - I was paying about £260 in total PPI each month…

Which brings me on the the final part - sorry it’s so long :/

I got in a mess and was getting cash out to pay cards with and applying for other cards and using those to pay of older ones… Not clever, but if the banks performed proper due diligence I would have only owed a few grand before they shut the door, rather than a considerably bigger amount when I defaulted on one of them. This was pre 2008.. Maybe there was a reason this happened.

I ended up getting an IVA in the end and paid most of it back over five years.

On the final page of the Capital One letter they say this:

“If the debt owed to us was sold to a third party, we have not taken into account any further payments that may have been made since when calculating 8% simple interest. If any repayments have been made, please let us know so that we can calculate whether any further redress may be due.”

So, I think this means that if it DID get transferred to the IVA company and Capital One got more cash there may be more money to calculate as the debit I paid the IVA company included PPI - so I need to find that evidence and tell them? I paid A LOT of money to the IVA people!

I really appreciate any pointers or clarification.

I'm really glad I DID do the Resolver thing as it was so easy.

Gill
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Replies

  • zx81zx81 Forumite
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    It all seems ok.

    They've put the redress against the unpaid balance, which they're allowed to do.

    If you feel you actually settled it in full, then you can send them that evidence.
  • Wow, quick reply, thanks :)

    Presumably they can tell me when the account was closed and what state it was in at that time? I can then possibly track how much they got via the IVA as 'conveniently' their system doesn't track that :/
  • zx81zx81 Forumite
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    They can certainly tell you the total outstanding balance, although they may no longer have it broken by payment type, due to its age.
  • societys_childsocietys_child Forumite
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    I was paying about £260 in total PPI each month…
    Typically PPI was charged at ~75p. per hundred pounds outstanding balance.
    What was the balance on the card?
  • Rainbowgirl84Rainbowgirl84 Forumite
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    Wow, quick reply, thanks :)

    Presumably they can tell me when the account was closed and what state it was in at that time? I can then possibly track how much they got via the IVA as 'conveniently' their system doesn't track that :/

    Presumably you were given that info. from that time and should have record of it?
  • [Deleted User][Deleted User] Forumite
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    Typically PPI was charged at ~75p. per hundred pounds outstanding balance.
    What was the balance on the card?
    The £260 a month in PPI appears to have been across several lenders or different finance...
  • Edi81Edi81 Forumite
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    You defaulted, they lost out as the IVA repayments would only have given them a part of what you owed.

    Capital One are correct and within their rights to keep the money.
  • societys_childsocietys_child Forumite
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    The £260 a month in PPI appears to have been across several lenders or different finance...
    I did wonder, but thought I'd ask the question anyway ;)
  • You borrowed money and broke the agreement, right?

    You are due nothing from the bank but only a reduction on your bad debt.

    Think about it as a positive.
  • Thanks for your quick replies everyone, I do appreciate them - even if some are not so cheery :)

    It's nice to understand what is happening. I'm a very different person from back then, I had got divorced for various unpleasant reasons - basically walked away - back in the late 90's banks would give you money with just a signature.

    Over time the debits built up I think Barclaycard don't share much with other firms so I was 'allowed' to borrow way more than I could practically afford to pay back.

    I eventually realised this - perhaps due to the default notice and organised an IVA - which at the time seemed the thing to do, although I had no house to protect and no particular assets that could be taken as I was living with my parents at this time. In the following five years I paid back well over 34k - they even upped it in the final year as I was doing overtime!

    I don't feel the IVA allowed me to walk away 'scot free' I've paid 'someone' a ton of money in the following five years! I'm feeling a bit now I should have done something different :/

    It seems I would need to reach out to the IVA firm and see how much they paid to each lender?

    So, to reply to everyone.
    societys child - Yes, it was over a few cards, the balance from the statement I had was 4k and the payment was £32.

    Rainbowgirl - No, I don't have records going back to 97 - but I do know when the IVA started so I can find that info.

    Moneyineptitude - Yes, a few cards.

    Edi81 - I'm thinking the IVA was a bad idea now as I paid 'someone' A LOT! - at least 34k! It seems I need to find out how much they got from those payments and then they can recalculate - they seem 'super accurate' with their initial calculations - but have no ability to track any payments made by the IVA firm.
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