Fos - calculating compensation information sheets (new part added)

[TINK660]

Hi

 

My cc ppi complaint has been upheld by an adjudicator but the company have only agreed to refund the last 6 years which amounts to the grand sum of 0! Needless to say I have rejected this very kind and very generous offer as the card dates back to 1998. It is now going to be passed to an ombudsman which could involve another few months wait!

 

However I found it interesting that the FOS calculation compensation sheets now includes another paragraph that states

"the financial business should assume the customer would have made the same payments to their credit card account each month even if the PPI premium had not been added. The account reconstruction must therefore include removing any interest and charges that would not have been applied if these payments had reduced the balance by more because no PPI premium was added"

 

???????

 

I have found it more than impossible to understand the previous calculations of ppi I have had from Barclays and MBNA but if this should now be applied to future complaints should it not be applied retrospectively to the complaints that have already been upheld and paid out?

 

Any comments?

 

Tink

[marek321]

I find this interesting as I have an ongoing claim with Barclaycard which is with the FOS http://www.consumeractiongroup.co.uk/forum/showthread.php?246239-Barclaycard-PPI

I am still waiting for a result from FOS and this may well have some effect on the final judgement.

[dx100uk]

garbage.

 

ppi refunds are not limited to 6yrs

 

see the limitations act sec 32c

 

go get 'em

 

dx

[noomill060]

Hi

 

My cc ppi complaint has been upheld by an adjudicator but the company have only agreed to refund the last 6 years which amounts to the grand sum of 0! Needless to say I have rejected this very kind and very generous offer as the card dates back to 1998. It is now going to be passed to an ombudsman which could involve another few months wait!

 

However I found it interesting that the FOS calculation compensation sheets now includes another paragraph that states

"the financial business should assume the customer would have made the same payments to their credit card account each month even if the PPI premium had not been added. The account reconstruction must therefore include removing any interest and charges that would not have been applied if these payments had reduced the balance by more because no PPI premium was added"

 

???????

 

I have found it more than impossible to understand the previous calculations of ppi I have had from Barclays and MBNA but if this should now be applied to future complaints should it not be applied retrospectively to the complaints that have already been upheld and paid out?

 

Any comments?

 

Tink

 

 

I spotted this change to the FOS site too. It wasnt there before.

 

This is good news. I had a similarly disappointing "offer" from Barclaycard. £100 odd of miss sold PPI premiums from 2000-02.

 

Luckily I had copies of the statements proving it.

 

Anyway- my kind settlement offer was for less than £200- fot the charges plus interest to date. (Yeah right TEN YEARS interest on £100 odd is less than £100, according to Barclaycard!)

 

 

""the financial business should assume the customer would have made the same payments to their credit card account each month even if the PPI premium had not been added. The account reconstruction must therefore include removing any interest and charges that would not have been applied if these payments had reduced the balance by more because no PPI premium was added"

 

means that the amount of the PPI premium paid each month was not used to repay your actual debt, and so the amount of your debt which the premium would have cleared continude to get interest slapped on it again and again each month. The FOS are now making clear that this interest must be repaid to the consumer, not just the PPI premiums.

[TINK660]

Do you think it will be possible to approach the credit card companies that have already paid out as they say "in line with the FOS guidelines" and ask them to revisit their calculations in view of the additional part to the guidelines?

[iconoclash]

HI -dont see why not - I was paid bank charges in the past and they didnt pay the interest so went back and pointed it out, and they paid it as it was always part of my claim. There is an assumption that they will get it right and use the right criteria in calculating the sums and you are somewhat at their mercy in this respect, now you can see there was other matters they should have taken into account, I would write to them if it were me.