just doing some research into the time limits thingy:

FOS website states: six months from the business sending the consumer a final response (which has to mention the six-month time limit);

and

six years from the event the consumer is complaining about (or - if later - three years from when the consumer knew, or could reasonably have known, they had cause to complain).

I only became aware of the issue when I received the SAR so should be covered here I think.

I've read it and re-read it and Elderbridge make it sound like it's consecutive years but the FOS wording seems quite open?

I know that no-one can say for sure but does anyone else either read it the same way or had experience of this time limit issue?

if you didn't realise the error till the sar return its not time barred ..end off

Telephone call from FOS telling me that the PPI I was sold was a CASHBACK one meaning that if I hadn’t made any claims in the 5 years it was due to run that I’d get the policy (not the payments or interest) back.

This is why they refunded it by cheque and then added it to the balance. Apparently Barclays we’re selling these at the time.

Has anyone heard anything like this as this is the first I’m hearing of this?

Yes i have

Should be detailed in your sar agreement return??

Yes i have

Should be detailed in your sar agreement return??

No mention in the SAR, FOS never mentioned it in previous communication either.

It’s buried in the t and c’s that as long as you keep up the payments that you may get the premium back.

So what they’ve done is refunded me the PPI, payments and interest and then added back to the balance.

Otherwise I would’ve been paid back twice????

in effect restructuring the loan and then increasing the balance.

FOS feels that this is okay and has sided with them.

they cant add it back to the balance no.

go tell the fos.

they cant add it back to the balance no.

 

go tell the fos.

Thanks dx. I agree but FOS do not. They explain it like this:

At the start of your loan, you borrowed an extra £13,469.50 which was added to cover the cost of the PPI. You were charged £3,962.24 in interest because of the PPI premium between the start of the loan until the PPI was refunded. This means the total amount added to your loan over that time because of the PPI was £17,431.74.

In cases like this, we’d expect the business to refund what you’d paid for the PPI up to the point it was cancelled. We’d then expect them to remove the rest of the PPI from the loan that you hadn’t yet paid.

You’d already paid £4,681.86 of this cost yourself, so this is what you were refunded. This also means the amount of PPI left in your balance would’ve been £12,749.88. But when Firstplus made its offer, they removed the total cost from the loan first. So at that point, along with what you’d already paid, too much would have been removed from your balance. This is why £4,681.86 was added back to your loan when it was refunded.

In total you received the total cost of £17,431.74 back - £4,681.86 paid to you and £12,924.10 removed from your balance. You also received simple interest at 8% per year as compensation on the payments you made.

All things considered I think Firstplus made you a fair offer and put your loan in the position it would have been in had the PPI not been sold.

I’ve asked for the ombudsman’s view because them adding it to the loan amounted to their gain - added interest and to my detriment. Oh yeah, when I questioned the cash back business they withdrew that term.

Thats better which is why we ask for scans of letters not a synopsis of what you think it says.

You cant be refunded twice.

You'd already reclaimed the ppi

So were not entitled to the cashback

I do get that about not being refunded twice.

It’s just them writing a cheque and at the same time adding it to the balance.

I never knew anything about cashback, I believed that the cheque was the PPI refund. I never received a statement of their workings out or a statement until recently.

Hindsight is great but if it had been explained to me I’d like to think that I would have been able to question the logic of giving me a cheque and then adding it to the balance.

In effect it was an expensive advance.

Its not its cost you nothing

Its not its cost you nothing

Thanks for taking a look dx. I’ll find something else to worry about.

hey not an issue

you indicated early on maths was not a strong subject.

glad to help.