PPI RBS Complaint Upheld but partial refund

dc70

Hello,
I asked RBS how much PPI I had paid and they stated in writing that it was £1,311. I filed a complaint that the policy was mis-sold and they responded stating that "the bank is prepared to uphold your complaint and to offer the following redress:" They are offering a "Total Refund of PPI premiums" of £64, plus statutory interest.

Since they have upheld my complaint that PPI was mis-sold, are they not required to refund all the premiums? There is no mention of comparative redress etc.

Thanks!

DC

[Deleted User]

Were there arrears on the account?

dc70

No - no arrears.
DC

[Deleted User]

I'd read carefully where they stated (in writing? ) exactly how much PPI you paid.

Are you sure this wasn't the total amount you borrowed?

What exactly does it say in the offer letter awarding you £64 plus interest?

Could this be a Plevin refund of undisclosed commission?

dc70

The response to my original request for information about PPI contained a table which referred to 4 loan accounts. The table included columns for policy start date, end date and "Insurance Premium". The £1,311 amount stated in the original post was one of the values under Insurance Premium.

The offer letter says:
"Having reviewed the information you have provided, the Bank is prepared to uphold your complaint and to offer you the following redress:"
Then in a table:
"Total refund of PPI premiums and associated interest paid to date: £64.01"
Then amounts for statutory interest.

I mentioned there were four loan accounts. Each had a PPI insurance premium listed against them in the response table. I quoted one of them in the original post for simplicity and because it was the most extreme (5% refund of premiums). The others contained various refund rates from 37% to 83%.

There is no mention of Pevlin. The bank has confirmed that the complaint is upheld, rather than rejecting the complaint about mis-selling and only accepting Pevlin.

DC

[Deleted User]

Sounds like only one of the four accounts has been successful.

You'll either receive rejection letters for the others or they will uphold those separately.


This appears to be a query only the Bank can answer accurately, but you are certainly the first poster I've ever encountered who asked prior to complaint exactly how much PPI was paid...

dc70

The process I followed was the one set out by the FCA - first to contact the bank to check if I was charged PPI. They responded with a table showing 4 loan accounts with 4 PPI policies and 4 values under a column marked "Insurance Premium".

I then complained about mis-selling and got four response letters. They were all the same in that my complaint was upheld. Their offer of PPI refund was 5%, 37%, 54% and 83% respectively of the value of PPI Insurance Premium shown in the response table.

My original question stands though - if the bank is upholding my complaint and not citing Pevlin or Comparative redress, what grounds do they have to not make a full refund of PPI premiums?

DC

[Deleted User]

dc70 wrote: »

if the bank is upholding my complaint and not citing Pevlin or Comparative redress, what grounds do they have to not make a full refund of PPI premiums?

A question you should direct to the Bank, since forum users can only guess based on the very limited information you have provided.

dc70

Ok thanks.
The reason I asked here is to be armed with information before contacting the bank. Is it simply the case that although a complaint is upheld, the bank does not have to make a full refund and does not have to give a reason why? If so, then contacting the bank will probably yield a "that's our offer, take it or leave it" response I would think.
DC

[Deleted User]

dc70 wrote: »

Is it simply the case that although a complaint is upheld, the bank does not have to make a full refund and does not have to give a reason why?

No. They have to explain how their redress calculations are made.

I have no doubt it will be something basic you have missed, though. Are you sure the amount you think you paid in PPI is correct?

dc70

To be honest, I was surprised at the amounts of PPI "Insurance Premiums" disclosed. They do seem to be disproportionate to the amount of the loans. But then again, it's hard to see what else those values could be. They are not the loan amounts. As I mentioned, RBS propose to refund 5% of one of the values, but 83% of another. Since the policies are likely to be identical (all against loans taken out across a 4 year period), it's hard to find a logic for the difference in refund levels. I'll ask them!
DC