Thread: Landy v M&S PPI / **WON**

Hi everyone

I went to update my thread on M&S PPI and realised that I hadn't actually started one - doh!

Anyway, Mr L had a M&S credit card until 2008. The card had PPI applied which we only recently realised was mis-sold. Surprisingly after only two letters M&S have offered to refund the PPI as a 'gesture of goodwill', admitting no liability etc.

The offer is for the premiums plus 8% statutory interest.

The claim we submitted was for contractual interest plus 8%.

This means their offer falls short by about £1000.

Mr L has 6 weeks to accept the offer or 8 weeks to complain if he is still not happy.

Mr L is all for accepting as it's still a substantial sum - but to me that's not the point. They charged him the contractual rate (around 19%) so I think this is what we should get back.

I'm sure the advice will back up my viewpoint, but I suppose I just want reassurance. This has only been going on for a couple of months so a few more weeks wouldn't hurt.

Does everyone agree that with another push we might squeeze a bit more out of them?

All advice gratefully accepted as always, thank you

Regards,

Landy x

Hi middenmess

The credit card balance was paid in full last year and the card is no longer in use, so I don't think I would achieve anything by trying to prove whether it was enforceable or not - if it was an active account it might be different

I've written declining their offer as F&F settlement and said we will accept as partial settlement only.

Will update as and when.

Regards,

Landy x

going on past expeireance if u dont accept the offer it will result in a deadlock letter which would mean step 2 4 you but i do agree that you have not been put back in the right position so the question is are u prepared to wait while the fos sort it but remember the 8% interest will still be adding by the day until they do so i would send them your non acceptance letter and try your luck and if its a no then its step 2

Hi PF and LP

Thank you for your advice - the letter declining their offer has been sent so now I guess we'll just have to wait and see!

M&S say in their offer letter that it is their intention to put Mr L back in the position he would have been in had the insurance not been added, but then go on to say their offer contains 'an element of interest' - when what they are actually offering is 8% yet their contractual rate was nearer to 20%.

Well done LP on getting a result you are happy with!

Will keep the thread updated with any further developments.

Regards,

Landy x

Originally Posted by leviculus_puella

not sure if this helps at all landy but i kept at m&s and they increased theyre offer by approx 5000 pounds it wasnt the whole amount i asked for but it wasnt far short, it has taken nearly eight months though, they didnt want to play ball after i refused theyre first offer but i knew how much id paid and gave them evidence of this my advice is to keep at them and if you can afford to wait go to the fos because then youll get the whole amount but a bit of persistence paid off for me

Was this a card or a loan & when did you take it out please?

I'm now having to complain to the insurance underwriter as FOS can't deal with my complaint directly with M & S as they weren't regulated when I took out my card in 1998.

Hi LP

That's great - fortunately Mr L's account is no longer in use, although M&S don't seem to agree as they already told him that the charges refund we requested would be credited to his account............which he hasn't used for two years and has no valid card for:?

Regards,

Landy x

Hi everyone

Just updating this thread -

Sent letter via RM recorded delivery to M&S accepting their offer as part settlement only - this took 10 days to arrive

I don't know if it was down to the postal strikes or what, but as it took so long, I feel I should give them a little longer to come up with a better offer. In my letter I gave them a further 10 days, which would have taken us to 2nd Sept, but as they didn't receive it till the 1st Sept I'm not sure how much extra time I should allow them? Any ideas please guys?

Regards,

Landy x

Hi PF

Thank you - will do!

I take it you've no news yet?

Take care,

Landy x

Hi everyone

Just updating this thread -

M&S have responded saying they hope to have this resolved within another 4 weeks.

As much as I know I should stick to my timetable and put in the fos complaint now, I feel that maybe allowing them the extra time they've requested might see a result more quickly than if the FOS get involved.

M&S have already offered a refund of the premiums paid - it's just on the interest front that their offer falls short............so I'm inclined to let them have their extra time.

Will let you know how I get on.

Regards,

Landy x

Hi everyone

Well today we have received a further letter from M&S stating that their previous offer was their 'Full and final offer' and that they 'will not be refunding any of the contractual interest you referred to in your letter'.

Their offer was for all premiums paid - around £1200 - plus what they term 'an element of interest' amounting to around £250. Total refund offered £1450 approx.

My calculations show they should be refunding the following -

Premiums paid £1200 (approx)

Contractual interest @ 19.9% £790 (approx)

Statutory interest @ 8% £440 (approx)

Grand total £2400 (approx)

In the light of the recent confusion that has arisen regarding whether the fos actually require firms to repay contractual interest, I am now unsure whether to accept their offer or file a complaint with the FOS only to wait several months (if not years, lol!) only to find the FOS upholds M&S's viewpoint

If only we had some clarity as to what the FOS's position on contractual interest actually was!

I return again to the general concensus of opinion that the idea is to be returned to the position you would have been in had the PPI not been mis-sold in the first place - which means not only would you not have paid the premiums, but neither would you have paid the interest at the contractual rate which was applied to those premiums.

Maybe the problem arises when one requests a refund of premiums paid plus contractual plus 8%??? Because, let's face it the 8% would only normally be added once it goes to court..................

Possibly if one had just asked for premiums plus contractual, the firm might be more inclined to agree - maybe asking for both is just being greedy?

Any opinions on whether I should bother taking this one to the FOS or whether I should just roll over and accept their offer would be greatly appreciated

Regards,

Landy x

I found out yesterday that I had won my claim against M & S which was referred through fos to Allianz as the insurers at the time when I took out my card, like you it is only including a flat 8% interest, but after speaking to the technical department at FOS & giving their telephone number to my compliance officer I am pushing for the contractual interest too.

I have got to wait until Tuesday for my compliance officer to speak to his manager & FOS Technical Advice department.

The Technical advice deparment are very helpful & will advise you on what to do.

Have you received your cheque yet?

Originally Posted by landy_alert

Hi everyone

Well today we have received a further letter from M&S stating that their previous offer was their 'Full and final offer' and that they 'will not be refunding any of the contractual interest you referred to in your letter'.

Their offer was for all premiums paid - around £1200 - plus what they term 'an element of interest' amounting to around £250. Total refund offered £1450 approx.

My calculations show they should be refunding the following -

Premiums paid £1200 (approx)

Contractual interest @ 19.9% £790 (approx)

Statutory interest @ 8% £440 (approx)

Grand total £2400 (approx)

In the light of the recent confusion that has arisen regarding whether the fos actually require firms to repay contractual interest, I am now unsure whether to accept their offer or file a complaint with the FOS only to wait several months (if not years, lol!) only to find the FOS upholds M&S's viewpoint

If only we had some clarity as to what the FOS's position on contractual interest actually was!

I return again to the general concensus of opinion that the idea is to be returned to the position you would have been in had the PPI not been mis-sold in the first place - which means not only would you not have paid the premiums, but neither would you have paid the interest at the contractual rate which was applied to those premiums.

Maybe the problem arises when one requests a refund of premiums paid plus contractual plus 8%??? Because, let's face it the 8% would only normally be added once it goes to court..................

Possibly if one had just asked for premiums plus contractual, the firm might be more inclined to agree - maybe asking for both is just being greedy?

Any opinions on whether I should bother taking this one to the FOS or whether I should just roll over and accept their offer would be greatly appreciated

Regards,

Landy x

Hey Landy snap I just had an offer from Capital One premiums 0% but 8% statutory.

Basically told them to get stuffed as their letter was quite abhorrent. I will post the details on the letter after the result comes in. Big stack of papers sent back to the FOS same day.

If you were being charged contractual interest on the PPI then you should IMO be entitled to that interest being repayed.

Must say though my claim is smaller than yours.

aa