Got PPI settlement figure - what now?

euphemia

I hope that someone out there can help us

A bit of history -
We took out a loan with First Plus in July 2005 (business debt) for £54,000. We also took out cover solely for my husband (we were pushed into this) which came to £10,762. We were told that the insurance was for the whole term - 25 yrs but if we didnt make a claim in 5 yrs we would get the money back.

We have recently sent off letters to them about reclaiming PPI (templetes for here) and after several letters they have given us a settlement figure.

Quote "we are willing to offer an enhanced rebate of the insurance policy. The enhanced rebate that we are prepared to offer you is calculated on a pro-rata basis of 78% of the premium (22% being held back for the provision of claims and administration costs)

I would therefore like to offer you an enhanced rebate of £3,032.12 in addition to the £745.41 that will be applied to your loan account on cancellation of the policy"

Does this mean that £3777.53 will be credited to our account and if so do you think that this is a reasonable amount or do we take it to the FSA and see what happens.

Also happens to the loan amount? Does it reduce back to £54,000?

Sorry for it being a long post but would just like as much advice before deciding what to do next.

Mandy thanks

xxlaurissaxx

Theres no way i would accept that. They added over £10k onto your loan and only offering back just under £4k? I would write back asking for the whole lot!

euphemia

Thanks for your reply.

Their letter also states "This communication should be viewed as our final response to this matter"

Is this just another ploy by them to shake us off and if so what do you think we can do next, write back and ask for the full amount plus interest?

Any other opinions would be greatly appreciated.
Thanks

jonesMUFCforever

No I would take that as a letter of deadlock and go to Financial Ombudsman.