Black Horse offered payment - what to do?

skyrocket123

I am helping my elderly neighbour to reclaim against Black Horse who have yesterday sent a letter acknowledging her claim.
The letter states that in 2011 they extended the term of her motor finance agreement  for 48 months and that they didn't take into account her next payment therefore charged more than they should. 
They are offering her just shy of £170 including 8% gross compensation interest.
It's unclear whether this is even about the claim we originally put in for so I thought I would check with your knowledgeable people. In any case considering this is from 2010 then £170 seems pitifully low. She very much had a hidden discretionary commission on this car.

Is this them trying to head off future claims for something else?

DullGreyGuy

skyrocket123 said:

I am helping my elderly neighbour to reclaim against Black Horse who have yesterday sent a letter acknowledging her claim.
The letter states that in 2011 they extended the term of her motor finance agreement  for 48 months and that they didn't take into account her next payment therefore charged more than they should. 
They are offering her just shy of £170 including 8% gross compensation interest.
It's unclear whether this is even about the claim we originally put in for so I thought I would check with your knowledgeable people. In any case considering this is from 2010 then £170 seems pitifully low. She very much had a hidden discretionary commission on this car.

Is this them trying to head off future claims for something else?

DCA and what they are offering to resolve is totally independent

Statutory interest is 8% simple interest, ie you dont get interest on the interest. So £170 would be roughly £80 compensation plus 14 years of 8% interest. 

dunstonh

It's unclear whether this is even about the claim we originally put in for so I thought I would check with your knowledgeable people. 

It's not.     However, the original complaint would have resulted in them checking the past information and they found an error and are now correcting it.   There have been quite a few of these.

 In any case considering this is from 2010 then £170 seems pitifully low.

8% interest is the statutory rate.   That will be applied to the misspplied payment.    If you consider it pitifully low then that would be because the monthly payment was low.  

She very much had a hidden discretionary commission on this car.

If it was hidden, how do you know?     
Most Black Horse replies to DCA enquiries just confirm that DCA existed with the dealer.   They don't state whether it was positive, neutral or negative.    The FCA was expected to rule that negative DCA should result in redress but not positive or neutral.    However, the recent court case has moved on from DCA to commission in general.    So, we probably won't know the outcome for several more years.

Is this them trying to head off future claims for something else?

No.  its them identifying another issue and dealing with it as is required of them.