PPI claim prior to JR in 2010 - should I have been paid 8% interest?

AliR72

Hi,

So an unusual scenario around extenuating circumstances on a PPI claim.

I has a PPI claim upheld by RBS in Feb 2010, and accepted the claim amount being offered. The PPI claim was based on a £10k personal loan with a single premium PPI of £2,151 taken in 1999 and settled in 2004. At the time of loan acceptance and settlement I was working in an international bank, at all times my sickness at work was based on 6 months full pay & 6 months half pay so there was no need for me to take the PPI.

At the time of loan acceptance, loan settlement, the PPI claim & settlement offer (which was before the Judicial review -JR - in 2011), I had a significant gambling addiction, so I didn't pay much attention and just accepted the settlement. 

Now having been 3+ years into recovery from the 35y addiction, I was sorting my paperwork in preparation for moving as my landlord has been trying to evict me for the last year as he wants the property back. On reviewing the PPI claim and settlement I noted it didn't look like RBS had included the 8% interest, and having used an excel spreadsheet, this backed up my suspicion's.

I asked RBS to look at the claim and explained the extenuating circumstances (of my gambling at the time, which can be clearly evidenced) and that a proper breakdown had not been included within the settlement letter. They have kindly reviewed, and confirmed that 8% interest wasn't included because at the time of the claim & settlement they were not obliged to pay 8% interest as it was before the JR so there is nothing more they can do.

I have spoken with the FOS who said they would look at it and also the FCA (including the FCA website) which confirms 8% interest but neither the FOS or FCA mentioned about whether the 8% interest should have been paid before the JR. 

I have stated to RBS and FOS that I appreciate this could be time-barred, however given the extenuating circumstances around my disordered gambling and the fact I was deprived of the money from 2004 to 2010 (when the PPI claim was settled) then 8% interest should have been added (equating to approx £830). I have also stated that I am only seeking the interest that should have been paid up to 2010 and not to current day (2021).

Having reviewed PPI claims on MSE forum at the time (in 2010) there appears (a) Some claims where 8% interest was not being added, (b) some claims where 8% interest was included, and (c) claimants being advised to go back to the lender to ensure the 8% FOS interest was added as the claimant was deprived of the funds.   

Should I still pursue this with RBS and FOS? And does anyone on the forum have PPI claims that were settled prior to the JR which included the 8% interest (and which lenders were they).

Thanks
Ali

dunstonh

I have spoken with the FOS who said they would look at it 

That sounds like the standard telephone line response to anything.  However, the FOS have no remit to look at it as you accepted the offer and did not refer it to them within 6 months of the complaint response.   So, when a real member of staff at the FOS sees it, they will refuse you.

 and also the FCA (including the FCA website) which confirms 8% interest but neither the FOS or FCA mentioned about whether the 8% interest should have been paid before the JR. 

Before the FCA set the rules, firms could use different interest methods.  Some used based rate +x%.     

Complaints have to be settled on the rules at the time.  Outcomes are not changed retrospectively because of rule changes years later.