EGG PPI Offer - Should I accept?

[scrambledbyegg]

After a single letter just received an offer from Egg for miss sold PPI, BUT it ignores the original loan (2001) and contains no compound interest, it is only the original premium plus interest at a "contractual rate" it completely ignores the interest on the loan. Should I reject the offer? It is about a grand short of the figure quoted as total payable in the attached.

 

egg_p1blk.pdf

[KER]

So you've asked for £3500 and they've offered £2500?

[dj1971]

Hi Scrambled,

 

If in your original claim letter you requested a refund on the original loan from 2001, then personally I would refuse their offer on that basis alone.

 

Am confused by your comment "and contains no compound interest" and then "it is only the original premium plus interest at a contractual rate"

 

If you let us know the date your first repayment was made, I can work out how much your refund should be, then the decision is yours whether or not to accept their offer.

 

DJ

[KER]

Hi Scrambled,

 

If in your original claim letter you requested a refund on the original loan from 2001, then personally I would refuse their offer on that basis alone.

 

Am confused by your comment "and contains no compound interest" and then "it is only the original premium plus interest at a contractual rate"

 

If you let us know the date your first repayment was made, I can work out how much your refund should be, then the decision is yours whether or not to accept their offer.

 

DJ

 

Glad I wasn't the only one confused

 

 

We need to know the figures to balance up your options I was offered £400 less than I'd asked for (although I'd added more than 8% statutory interest on top of the original figure, so I was quite happy to accept their offer). Letting them "off" that £400 is the difference between having a long drawn out battle on my hands, referring to the ombudsmen and making the case longer, or that 4k being in my bank account within 21 days (fingers crossed).

 

It can be fine demanding more and more, but sometimes you have to look at what's the best outcome for you at the time

[scrambledbyegg]

Hi the original figures are iin the previous attachment for the Oct 2005 loan (I'll have to dig out the 2001 but guessing kinda similar. The offer is 2862 less PPI refund when load defaulted (2009) of 164 plus 113 contractual interest, giving a total of 2811, which is less than the original amount even without the 8%. INteresting they neither accept or deny the loan was miss-sold (existing medical condition), and they only quote the newer loan reference so I guess I could treat them separately.

 

Just a thought on insurance in general, isn't it interesting how the selling of insurance occurs, imagine buying a car in the same way and having to tell the dealer every road you were ever going to drive on with the car before buying, then breaking down on a different road and being told sorry warranty doesn't cover you! The whole finance industry is morally bankrupt and allowed to get away with whatever they like, when was the last time a DCA had its licence removed for mis practice yet if you read these forums it occurs on a daily basis. These forums and the valuable contributors on here offer some of the only real protection out there for consumers. Bit off topic, but just wanted to express my gratitude for here and annoyance for a an industry which takes but never gives.

[dj1971]

Ok Scrambled,

 

How many monthly payments have you made in total?

 

DJ

[scrambledbyegg]

I'll have to look that up about about 12-18, from what I can tell the full amount was included in the loan, I'll post the info up a bit later, just gotta pop out.

[scrambledbyegg]

Before I was defaulted I paid, 5 payments. The PPi on the first loan was 2343 with 46 payments made. I have attached details on the loan Egg are making the offer on.

egg2_ppi.pdf

[dj1971]

Getting more confused here scrambled.

 

So to clarify, you have had 2 loans from egg. The first was taken out in 2001 and you made 46 payments before Egg defaulted you in 2009 and have now offered you a refund of £2,282.

 

Right so far?

 

The second loan taken out in October 2005 on which you made 5 payments and then ???????? Egg have made no mention of a refund on the second loan.

 

Correct?

[KER]

Getting more confused here scrambled.

 

So to clarify, you have had 2 loans from egg. The first was taken out in 2001 and you made 46 payments before Egg defaulted you in 2009 and have now offered you a refund of £2,282.

 

Right so far?

 

The second loan taken out in October 2005 on which you made 5 payments and then ???????? Egg have made no mention of a refund on the second loan.

 

Correct?

 

 

I have a horrible feeling OP thinks he's going to get a huge windfall for the second loan - rather than just a refund of premiums paid.

[dec22]

Have you tried ringing the person at Egg dealing with your case and asking whether they have investigated your first loan? Secondly I would ask why the contractual interest is so low on the refund. Egg generally won't pay you the 8% statutory interest (I assume this is what you are referring to as compound interest) unless you go through the FOS.

 

The staff are generally quite helpful.

 

Good luck!!

 

PS Forgot to ask, was the balance from your previousloan consolidated into your new loan in 2005?

[scrambledbyegg]

The first loan was consolidated by the second one, which after five months was defaulted by Egg (even though I paid before the DN deadline, I later found out it was passed to DCA 1 week before their own deadline!). Having looked at the defaulted amount, I think that that the offer by Egg, although low is not too far off, as has been pointed out its a balance between cash now vs 8%.

 

The letter only references the second loan, which may be my error in that I used the claim form by the FSA and only made reference in the notes to the first loan, in hindsight I am guessing that I should have been more explicit.

 

My question I suppose is this, given the reference on the offer relates to the second loan, if I accept that would it affect a future, separate claim against the first one? The first one I guess would be more appropriate to contest the 8% given the time. My feeling at the moment is to accept, wait for the payment and then proceed with the first one later.

 

On a side note, I have been trying to set up a payment plan with Arden, I have made an offer in line with another similar debt, but they refuse to accept without an income/expense report, am I correct that only a court is legally required to request such information? Should I just make the payments I offered and ignore their refusal?

 

Cheers

[dj1971]

Hi scrambled,

 

If you are happy to accept this offer, personally I would write to Egg making it perfectly clear this acceptance is in relation to the loan taken out in 2005.

 

Then there is absolutely nothing stopping you going after them for the PPI on the first loan.

 

DJ

[scrambledbyegg]

I sent off the acceptance yesterday, on the form I added "For account xxxx only" just in case they try and say that their reference number relates to me and not that one account. I should know how they take it in 14 days!

[dj1971]

Nice1 scrambled. Do keep us updated with any developments.

 

DJ

[scrambledbyegg]

Quick Update

 

I sent the form off with "only in relation to load xxx" written on it and have been patiently waiting for my account to be credited. The past few days I have had to reminders from Egg asking me to return the acceptance form (little keen perhaps) so I called up to ask if they had received it since it has been nearly two weeks. They said they had, noting it was for one loan only and that they had also sent out an offer for the first loan! That is very efficient since I hadn't even mentioned it to them yet! I am waiting for their letter so don't know what the offer is yet. My original intention was to try and insist on the 8% since the loan was 2001 I am guessing that would be a sum worth pursuing. It will depend on what they offer since my car dies yesterday and unless its a reasonable amount and I stand a good chance of winning its probably better jam today. Anyway I'll keep the post up to date when I receive something.

[dec22]

Good news for you!

 

Dec

[scrambledbyegg]

The second offer cam today with "contractual" interest, which is about 45% of what I believe 8% would be (the loan was 2001). I had intended to stick this one out and try for the full, but the car I just bought turned out to be a dog, so better to take the money and get a decent motor since getting to work depends upon it. I am torn between saying well done Egg (for being so quick and easy) or suspicious for them being so. I'll post on the PPI successes when the cash actually arrives, seeing is always believing with the finance industry!

[dec22]

More good news. They are quite quick nowadays at refunding you. Mine took about 8 days to land in my bank account from receiving the acceptance form. I assume you'll get a cheque if the loan is settled.