PPI claim to Natwest underway

[SickOfBanks111]

Hi

 

I sent an SAR to Natwest regarding another matter and when the paperwork was returned, I found I had PPI cover on a loan.

 

I believe i was misold PPI. So i wrote to the branch where i got the loan on 31 July 09. Letter was delivered on 01 Aug 09. They finally sent me acknowledgement letter around 20 August.

 

I believe they have 8 weeks to investigate and after 8 weeks, I can go to the Ombudsman. Does anyone know if the 8 weeks starts on 01 Aug 09 or 20 Aug 09.

 

I didn't put any figures in my letter. If the 8 weeks starts on 01 Aug 09, I'm thinking of writing to them again, just to stress that I've not had a 4 week update as they promise and that 8 weeks is up on such a date and i want full resolution by that date or am going to ombudsman. What do you thiink about sending this?

 

Also, if i do send it, should i say how much i expect?

 

Does anyone know how to calculate what the refund would be?

I tried using the calculator on here, but didn't understand it.

[birchave0]

If this loan was very recent why do you believe the PPI was miss sold?

I ask this because all of the banks have had an ar*e kicking over the last year regarding their sales practices involving PPI.

At the point of sale they should have advised the following;

 

1. insurance is optional

2. insurance will not affect the decision regarding loan application

3. insurance policy is available to purchase elsewhere, not just the company providing the loan.

 

If you do believe you have a valid complaint, wait for a final response from Natwest before contacting the FOS. You will need a final response before the FOS will investigate. As the FOS currently have cases awaiting allocation going back to Dec 07/Jan 08 you will have a long wait.....

As for the 8 weeks the banks seem to please themselves on timescales.....

 

The amount of PPI should be shown on the original credit agreement for your account, they will have added contractual interest to this too, the same rate applied to the loan itself. If you do contest the PPI this is the amount you want back plus 8% in simple interest which is what the courts would award if your were successful using the county court system.

 

Good luck!

[SickOfBanks111]

Hi birchave0

 

Thanks for replying.

 

The loan was taken out in 2005. I sent a SAR regarding something else and when they sent all the paperwork back, i found i was paying PPI.

 

I was certainly never advised it could be purchased elsewhere, I have existing medical conditions that i wasn't asked about and my employer gives full sick pay etc.

 

I contacted them and they have recently sent me a 4 week letter. So another 4 weeks to go!!!

[alanalana]

Proof of pre existing medical conditions should IMO be a winner if you go to the FOS not sure about the Courts.

 

My pre existing medical conditions got a £10k refund from RBS via the FOS. I could most likely have got costs as well if I had chosen the court route.

[SickOfBanks111]

Thanks for the info alanalana. I've read quite a few of your posts on ppi and it was those that prompted me to try to claim.

 

I got a response today. They have said they're unable to confirm what information was and wasn't given to me, therefore are making a gesture of goodwill offer without any admission of liability.

 

They've offered me what I have paid to date. (approx £4000). I asked about compound interest, but they said they don't offer it and i would have to go to the ombudsman to get it.

 

If I accept, they will pay it into my loan account (as I am in arrears) and anything left after clearing the arrears they will transfer to my current account.

 

Once thats been done and my account is unfrozen, they will rework what is left and reduce my monthly payment.

 

They have assured me I will get the full cost of the policy back, part with the offer and part with reduced future payments.

 

What do you guys think?

 

I reckon the compound interest should be approx £750. Should i give up on the interest or should i go to the ombudsman.

 

Can i even go to the ombudsman with what they are offering?

[livingdeadguy]

Don't give up! Push for the interest.

Have a look at my thread versus natwest. I pushed them after their final offer and as you will see, I got the interest i asked them for confirmed today!

[SickOfBanks111]

Don't give up! Push for the interest.

Have a look at my thread versus natwest. I pushed them after their final offer and as you will see, I got the interest i asked them for confirmed today!

 

Thanks LDG

Just read your thread. WELL DONE!!!!

 

Is there anyone on, who could work out the compound interest for me?

 

Also, I read the

online PPI resource, calculating compensation

stuff and i can't make out from that, if the bank should be offering the 8% compound interest on what you have already paid, or not; or is that something the FOS give you in addition.

What I think i'm trying to say is, if they offer you a full refund but not the compound interest, can you still go to the FOS and if so, what are the chances the FOS will decide in your favour?

Edited October 4, 2009 by SickOfBanks111

[SickOfBanks111]

I'm thinking of writing back to Natwest saying I want the interest. Does anyone know how best to word it? and how long I should give them to reply?

[SickOfBanks111]

Also....

 

Has anyone else received compound interest from Natwest / RBS without having to involve the FOS?

[pompeyfaith]

They've offered me what I have paid to date. (approx £4000). I asked about compound interest, but they said they don't offer it and i would have to go to the ombudsman to get it.

It is not a case of they don't offer compounded interest, more the case that you have already paid it so you want it back and at the APR they charged you.

 

The 8% interest is statutory interest and is work out at simple not compounded you can indeed claim this also because they have deprived you of the money over a considerable time so they have in effect borrowed that money from you so it is only right that they should pay to borrow it just like we do.

 

Write back to them giving them a further 14 days to reflect and make it known that the FSA and FOS take a dim view of financial companies pushing claims on to them that they can sort out quiet easily.

 

FSA unveils tough measures to protect PPI consumers

 

CP09/23: The assessment and redress of payment protection insurance complaints

 

Regards

 

PF

[SickOfBanks111]

Hi PF

 

Thanks for the reply.

 

I'm really confused by all this.

 

My original ppi policy was about £4200. Then interest at 7.9% (same as the loan), took total cost of the ppi to £5100 ish.

 

So far, I'd paid approx £4k of the £5100. So can i claim £4k plus simple interest? and how do you calculate simple interest? as i am going to tell them how much i want back.

[pompeyfaith]

If you paid interest at 7.9% on the PPI then that's what they have to pay you back compounded PLUS another 8% simple.

 

Do you have the agreement if you do post it up here minus personal details then ill work it all out for you.

 

Regards

 

PF

[SickOfBanks111]

If you paid interest at 7.9% on the PPI then that's what they have to pay you back compounded PLUS another 8% simple.

 

Do you have the agreement if you do post it up here minus personal details then ill work it all out for you.

 

Regards

 

PF

 

that would be a massive help.

 

I'll pm you in a few mins with the details if thats ok

[pompeyfaith]

Yup Ok

[alanalana]

As pompeyfaith says claim back the compound interest and the 8% statutory on top. There are calculators which PF can point you to but the FOS have their own method to work out what is owed. Much better though to have an idea so you should be able to claim back you PPI month by month plus the compound up to the date the account was settled or refinanced and then the 8% stat from the start of each monthly payment up to the date a settlement is agreed.

 

aa

[SickOfBanks111]

Does anyone know of any draft letters for rejecting their offer and asking for a full refund plus compound interest?

 

I'm really struggling trying to word it correctly

[SickOfBanks111]

If i get what PF has calculated, I owe you guys some drinky poo's!!!

 

Thanks everyone for the help so far

[alanalana]

You should write accepting the £4,000 as a part payment of what they owe you for the mis-sold PPI that you have paid to date. Explain though that you will insist on the contractual interest at the rate they charged you when you took out the loan. You are also entitled to the 8% statutory interest from the start of the loan to the day the dispute is settled.

 

Explain that unless they agree to your proposals you will submit a formal complaint to the FOS. This will mean a long delay but the FOS are upholding 90% of claims in the consumers favour. Also if you go to the FOS it will cost them a £500 fee to the FOS.

 

Hope this helps with an idea. Just draft up a letter and post it up so folks can read and advise but leave out all the personal data such as names, account numbers etc.

 

aa

[SickOfBanks111]

Hi AA

 

Thanks for replying.

 

You and PF have been a huge help.

 

I'm really confused by all this.

 

I know the initial cost of the ppi and then they charged me 7.9%. Then as far as i know the total cost gets divided up into 60 equal payments.

 

They have offered me what i have paid to date and will adjust my future monthly payments to take into account the remaining ppi payments i won't be making. So they are giving me the ppi, plus the interest they charged me back.

 

So I then say I want contractual interest on top of that, at 7.9%. and this is basically because i have in theory loaned them the money. Is that right?

 

And i don't understand where the statutory interest comes into it?

 

If i write back saying i accept it as partial payment and the refuse to give my the interest, will it not create problems if i go to the Ombudsman that i have already accepted a partial payment from them?

[livingdeadguy]

If this is anything like my own experience with them then they take PPi then add interest then divide up into equal monthly payments.

So all you need to do is add these together to get your total then add 8% to each monthly ppi payment and total it up.

The 8% is what you would have been entitled to as you have gone without the money that you have been paying.

I think this is correct but someone else will be along soon to confirm.

[SickOfBanks111]

If this is anything like my own experience with them then they take PPi then add interest then divide up into equal monthly payments.

So all you need to do is add these together to get your total then add 8% to each monthly ppi payment and total it up.

The 8% is what you would have been entitled to as you have gone without the money that you have been paying.

I think this is correct but someone else will be along soon to confirm.

 

Arh right ok. That confirms what i'd been thinking.

 

My next issue is; i've just found out that my monthly payments have varied a bit. a few times i missed payments and then caught up the following month, and i've also been making reduced payments for the past 10 months. Does anyone know if that effects the amount of contractual/compound interest i claim for?

[alanalana]

Hi AA

 

Thanks for replying.

 

You and PF have been a huge help.

 

I'm really confused by all this.

 

I know the initial cost of the ppi and then they charged me 7.9%. Then as far as i know the total cost gets divided up into 60 equal payments.

Do you have the agreement showing the breakdown of the PPI payments for each of the 60 months.

 

They have offered me what i have paid to date and will adjust my future monthly payments to take into account the remaining ppi payments i won't be making. So they are giving me the ppi, plus the interest they charged me back. If you have cancelled the PPI you should also get a rebate of a part of the remaining PPI still to be paid

 

So I then say I want contractual interest on top of that, at 7.9%. and this is basically because i have in theory loaned them the money. Is that right? No you should get back the PPI premiums including the contractual interest at 7.9% and statutory interest at 8%.

 

And i don't understand where the statutory interest comes into it?

 

The statutory interest is interest the FOS would apply. It is to put you back into the position you would have been in if you had not had PPI added to your loan. You have basically lost the Money for a period of time which you would otherwise not have done without PPI.

 

If i write back saying i accept it as partial payment and the refuse to give my the interest, will it not create problems if i go to the Ombudsman that i have already accepted a partial payment from them?

 

The Ombudsman will look at the whole case and make a decision but I turned down an offer as I was not offered 8% statutory went to the FOS and the offer was increased by over £1k.

 

If you have cancelled the PPI and they are offering a refund you should get the following:

 

the number of PPI premiums you have paid including the contractual interest at 7.9% which was added to the PPI single premium.

 

so if you have paid xx months of the 60 you should get xx months repaid including the contractual interest.

 

You should also get the statutory interest at 8% on each of the xx months payments from the date the payment was made until the date settlement has been reached.

 

There are calculators but Pompeyfaith should be able to assist if you post up the details of the dates of payments the amount of the payments for each month.

 

aa

[SickOfBanks111]

The Ombudsman will look at the whole case and make a decision but I turned down an offer as I was not offered 8% statutory went to the FOS and the offer was increased by over £1k.

 

If you have cancelled the PPI and they are offering a refund you should get the following:

 

the number of PPI premiums you have paid including the contractual interest at 7.9% which was added to the PPI single premium.

 

so if you have paid xx months of the 60 you should get xx months repaid including the contractual interest.

 

You should also get the statutory interest at 8% on each of the xx months payments from the date the payment was made until the date settlement has been reached.

 

There are calculators but Pompeyfaith should be able to assist if you post up the details of the dates of payments the amount of the payments for each month.

 

aa

 

 

Cheers AA

 

PF has done one of his famous spreadsheets for me.

 

I think I FINALLY understand the calculations. I've been looking on the web for the formula to calculate compound interest and my calculation now comes out very close to PF's spreadsheet.

 

My understanding is I get the ppi plus interest they charged me back. and then I can either ask for 8% stat (simple) interest OR 7.9% (same rate they charged me) contractual (compound) interest. I am asking for the 7.9% compound as it works out slightly more.

 

I am just in the middle of writing my response to Natwest. I'm saying i don't accept their offer as full and final settlement. However I do accept it as partial payment and spelling out exactly what else I want them to pay etc.

 

I'll let you know how i go on.

 

Don't think they will accept it to be honest, based on what they said when i spoke to them on the phone.

[alanalana]

They will most probably not accept it. But there is a 90% chance the Financial Ombudsman Service will.

 

That is the current percentage of claims upheld in the consumers favour.

 

The other thing is every time a complaint is submitted to the FOS the institution complained about faces a FOS fee of £500 for the investigation and adjudication.

 

This must be costing the financial institutions a shed load of money on top of the claims being upheld.

 

aa

[SickOfBanks111]

I'm giving them 10 days. Going to fax it tomorrow.

I'll have the Ombudsman forms filled in ready for when i get their responce.

 

Does anyone know how quickly Ombudsman are dealing with complaints lately? I expect they are snowed under