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    • B5hp8BqJls1p
    • By B5hp8BqJls1p 16th Apr 19, 12:40 PM
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    B5hp8BqJls1p
    PPI One Account Interest Query
    • #1
    • 16th Apr 19, 12:40 PM
    PPI One Account Interest Query 16th Apr 19 at 12:40 PM
    Hi,

    I've had a PPI offer of redress from RBS regarding our One Account mortgage. They offered refund of premiums + statutory interest at 8%. These two calculations on the offer seem correct to me.

    However, the policy was paid for directly from the mortgage account, so therefore the monthly premiums were being added to the total value of the mortgage.

    Since I will have been paying mortgage interest on the PPI premiums should RBS be making an offer that also includes historic interest in addition to statutory interest in the same way that credit card companies do?

    Advice appreciated.
Page 1
    • dunstonh
    • By dunstonh 16th Apr 19, 1:31 PM
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    dunstonh
    • #2
    • 16th Apr 19, 1:31 PM
    • #2
    • 16th Apr 19, 1:31 PM
    However, the policy was paid for directly from the mortgage account, so therefore the monthly premiums were being added to the total value of the mortgage.
    And reduced each month at the same time by the monthly payment. So, it never increased the borrowing.

    Since I will have been paying mortgage interest on the PPI premiums should RBS be making an offer that also includes historic interest in addition to statutory interest in the same way that credit card companies do?
    Why do you think you were paying interest on this?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • B5hp8BqJls1p
    • By B5hp8BqJls1p 16th Apr 19, 2:17 PM
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    B5hp8BqJls1p
    • #3
    • 16th Apr 19, 2:17 PM
    • #3
    • 16th Apr 19, 2:17 PM
    And reduced each month at the same time by the monthly payment. So, it never increased the borrowing.

    Why do you think you were paying interest on this?
    Originally posted by dunstonh
    It's an offset / current account mortgage, so the premiums were added to total owed on my mortgage - approx 10k over 12 years. It was the only 'current' account I was using, so salary paid in and other bills paid out of the mortgage account. If I hadn't been miss-sold the PPI then I would already have already paid an additional 10k off from the total owed on the house - and therefore I've paid interest on that 10k.

    Perhaps the bank could argue that any money paid in was firstly to pay off the PPI premiums and then the mortgage but they've never told me this.
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