RBS PPI calculation

Gunwoody

Hi all,

Can anyone enlighten me as to the correct way to calculate PPI redress for a credit card?

I complained after the calculation RBS sent me was wrong - so i complained, only to be told there'll be no revised offer.

I've now had a letter from RBS stating that they only pay stat int (8% & 15% pre April 1993) on accounts where the balance is positive after PPI payments are refunded.

So, simply put (and this is just an example), 12 months of £10 PPI payments, refunded (-£120) against a balance of say £240 would leave the account with an outstanding balance of £120. RBS say that the account has to go into credit before statutory interest is paid.

I thought, and i may be completely wrong, that the statutory interest awarded was as recompense for being 'deprived' of those funds over time, irrespective of what the balance of the account might be at the time.

Someone set me straight please as i'm not sure I have the fight in me to go back to RBS AGAIN and argue if I don't have the absolute truth of it. The 4 page letter they've sent to explain is enough to finish me off after waiting the best part of 5 months for a decision.

Many thanks

[Deleted User]

Gunwoody wrote: »

i'm not sure I have the fight in me to go back to RBS AGAIN and argue if I don't have the absolute truth of it. The 4 page letter they've sent to explain is enough to finish me off after waiting the best part of 5 months for a decision.

I would have thought a four page letter would have explained in detail exactly how their calculations are in line with regulatory guidelines?
Without sight of this letter (and your account history) it's difficult to comment usefully.
Is your account in arrears or in default , by any chance?

If, after reading their decision, you still fail to understand or agree with it you can ask FOS to look at it.

SonOf

I thought, and i may be completely wrong, that the statutory interest awarded was as recompense for being 'deprived' of those funds over time, irrespective of what the balance of the account might be at the time.

Are they refunding the actual interest that you were charged? (which would have been in the 30% range).
Did you go into arrears, defaults or had the balance reduced as part of an agreed settlement?