Thread: MrShed vs Halifax Visa - help appreciated!

Hi all,

First of all, let me apologise for the slightly off topic nature of this post - it is primarily to do with PPI charges. However, I feel the arguments have now gone into a more general nature with the bank, and not many contributors over that area of the forum!

I will try and be as concise as possible.

- I have held a Halifax Visa since 2002.
- In August 2003 I was signed up for PPI cover, which to my recollection I cancelled within one month verbally(over the phone). May be important to note that I had several credit cards at this time.
- Due to circumstance(mainly my laziness, although I havent yet admitted this to HBOS), the address on the account was not changed when I moved in 2003 after this PPI subscription/cancellation.
- During this period of time, I had a direct debit set up for minimum payment each month.
- July 2007, get called from DCA(internal) at Halifax stating I am over limit, due to the fact that the direct debit was not covering the interest + PPI that I was still being charged for.
- Complaint put in with Halifax, alleging:
* I never took out the cover(cant honestly remember whether it was on that card or not I took it out).
* I cancelled regardless.
* Misselling - due to the fact I was not working at the time(again couldnt remember exactly - turns out I was, but part time), and also pressurised selling.

- Complaint upheld by halifax on two counts: the working thing, and they could not produce either a signed agreement to pay the PPI or a transcript of the phone conversation.

Here is where the dispute begins. After(finally) acquiring all my statements, after many calls, the following is what I have claimed for:

- Refund of PPI cover totalling £155 over the 4 years.
- Refund of compound interest at the RATE ON THE CREDIT CARD totalling £69
- Refund of overlimit penalty charges, incurred due to the direct debit not covering the total amount of increase each month, totalling £80 (and compound interest on this).
- Removal of all defaults arising from this from my credit file.

I have been offered:
- Refund of £110 of PPI cover - for some reason they have missed off the PPIs since May 06.
- Refund of £9 in interest. They have calculated this at a rate of 8%. Not compounded, and even more insulting, not even 8% per year - just a flat 8%.
- A "goodwill" gesture of £8 refund on the penalty charges.
- No removal of defaults from my credit file.

The £119 has already been credited to my credit account. I have pretty much been told on the phone that this offer will not be increased.

Therefore, questions:

- First of all, as I have in writing that they basically accept liability, presumably the extra £45 in PPI charges is a no brainer legally?
- The interest they have based on the rate I would get if I had the money in the bank. However, as the money has been incurring their interest rate, surely legally I am owed this rather than the 8%?
- Penalty charges - I suspect this is on slightly more shaky ground, as presumably the(valid) counterargument is that I should have managed this so that regardless of the charges, I kept under my credit limit. My argument is obviously that were it not for the PPI charges, I would never have gone over my credit limit, as my DD would have covered all extra charges. In addition, I was not contacted for several months after first having gone over the credit limit(obviously by phone, as they did not have my address), therefore incurring several more charges. What are peoples opinion on this?
- The money has been automatically credited, and the letter did not say, or even hint at, this being in "full and final settlement". Can I safely therefore use this money in the interim without jeapordising my further claims? I have now in fact asked the question whether this is in full and final settlement, and am expecting an answer, verbally(over the phone), tomorrow. Have I shot myself in the foot by doing this?
- Big one: where do I go now? Would you suggest Ombudsman or small claims court?

Thanks in advance for any help anyone can give, and any questions I will be happy to answer!

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UPDATE: I have had confirmed on the phone today that the offer will definitely not be increased.

Can anyone advise?

Sorry Maurice confused what exactly you mean?

As point of note they have said I can actually use what they have credited so far without them taking it as acceptance. I am getting in writing the fact that that is their final offer, and also that they will not take use of that money as acceptance, should arrive tomorrow - the guy I have been speaking to is excellent and I have no reason to doubt this.

Thanks for the advice so far guys - what do you lot think of the specifics(ie the interest rate of the claim and also the penalty charges)? Not wanting to go down the "unfair penalty" route on the charges at the moment tho....