'The Financial Ombudsman has accepted on your behalf'
in Reclaim PPI & other insurance
5 replies 112 views
I made a claim re a Nat West credit card in mid August 2019.
I had heard nothing by November 2019 so contacted the Financial Ombudsman. The Ombudsman investigated and informed me that RBS would be making an offer of compensation and continued 'The offer is in line with the ombudsman’s general approach where we decide that a consumer shouldn’t have been sold PPI. And this should put you in the financial position you’d be in if you hadn’t taken out the PPI policy. ... Natwest will be in touch with you directly with details of how much compensation they owe you and how they’ve worked the amount out. Natwest will need to look at your individual circumstances – including the actual payments you made for the PPI and any interest charged – so it will take time for them to carry out the detailed calculations.'
RBS texted me on 13.3.20 to say my payment should be with me within 28 days (56 days in certain circumstances). No further details of the payment were given.
On 9.4.20 I called RBS and the lady gave me a breakdown on the phone of the amount they were paying (split into refund of premiums, interest, and CC interest) and said - and this is the bit that confuses me - that 'the Ombudsman has accepted this on your behalf'. I reserved my position on that, as I don't recall giving the Ombudsman authority to do this. I also asked for a breakdown of how the refund of premiums element of the proposed award had been calculated. This is because she told me on the phone that it was £1263. I had this card for 20 years so that looks light to me. She said a breakdown would be sent to me. I have not received it yet.
On 14.4.20 RBS wrote to me a letter saying, amongst other things, 'thank you for returning the signed acceptance form'. I have not ever seen an acceptance form let alone signed one.
On 23.4.20 they sent me a cheque for the amount calculated on refund of premiums plus £1263 plus interest, totalling over £5k. The accompanying letter said 'we confirm this now settles the matter and your PPI case file has now been closed'.
So - it's very nice to get a cheque for £5k, but I am not happy because:
a) I haven't seen how they've calculated the premiums.
b) I have never signed an acceptance form.
My question is: when you refer a PPI complaint to the Ombudsman, are you authorising them to accept a claim on your behalf? Or has something gone wrong here? I'm not for the moment going to bank the cheque but instead write back to RBS. But I just need to understand if I have a leg to stand on in these circumstances.
Thanks in advance for any help and sorry if this has been covered before - I searched the forum and couldn't see anything but accept I may have missed it.
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There is no haggle with these things. The calculation is defined. And the ombudsman has accepted the calculation used is acceptable.
Its not a case of permission being needed. You either accept that or you accept nothing. A binary choice.
Did you borrow on the card every month of that 20 years? You only pay PPI in the months you do not pay the full balance.
Acceptance forms are no longer required. Some do it but many dont and since the CV lockdowns that step is being bypassed as its meaningless.