Advice regarding PPI Offer received and possible F& F payment of debt

[Neeta]

Hi All

 

I have received an offer from one of the credit card companies I owe, relating to repayment of PP. The amount they have offered is what I asked for after using a calculation spreadsheet I found on this site so a HUGE thanks for that.

 

They have had several letters from me explaining my financial circumstances with an offer of payment but have yet to formally accept my monthly payment offer. So currently I am paying them a 'token' amount of £50 per month but they are still applying interest and charges.

 

I wasn't expecting them to be so quick to accept my PPI complaint and their subsequent offer - I only wrote to them 2 months ago regarding this.

 

The 'Acceptance' letter they have sent me states ' I understand that you will use all or part of the refund to repay any arrears that are due at the time the payment is made'

 

The amount they are repaying me is just under half of what I owe on the CC debt, but with all the recent charges and interest on the account the arrears amount is almost a quarter of the total I owe.

 

I would have liked to have been able to get this card out of the way by negotiating a full and final payment and at almost 50% of what I owe I thought I stood a good chance of getting it paid off, but now I'm unsure of what to do. Should I write to them and ask for a F&F amount? I'd be grateful for any advice, I want to accept their offer but I don't want it just to disappear into the lump of arrears and me not actually feel any benefit from getting it.

 

Hope this all makes sense.

 

Thanks in advance for your help.

 

N

[dx100uk]

you need to firstly make SURE they are paying the PPI correctly first.

 

did you use compounded interest at THEIR statement rate?

 

if not you should do....

 

dx

[rebel11]

Hi Neeta

 

DX is quite right, if you search Slick's recent posts you will find a straight forward calculator. You uses the rate that they are charging you at the moment on your latest statement. It could wipe a bit more off your arrears.

 

This explains Compounded Contractual Interest. They've borrowed your money, they've made profit from your money, it's call

'Restitution'.

 

http://www.consumerwiki.co.uk/index....erest_Tutorial

[Neeta]

They have included a para that reads 'Once the legal proceedings have been resolved with the FSA and FOS we will consider whether they have affected the way your refund should be calculated. If the legal proceedings or other considerations have had an effect on the way your refund should be calculated we will review the refund payment we have made you and let you know if you are due a further payment from us'

 

edited to add:- they have also said.. the method we use to work out how much to refund is as follows:-

 

a) we calculate a refund of the CRP monthly payments that you have paid for the last 6 years

b) we calculate simple interest at 8% per annum on each of the CRP monthly payments.

[dx100uk]

and this was a credit card?

 

dx

[Neeta]

Yes DX, originally Citibank now Opus

[dx100uk]

try this:

 

if it is a credit card.

 

dx

[dx100uk]

moved to PPI forum

 

dx

[Still_surviving]

I realise this is a PPI forum thread, but you do make mention of charges being added to the account...

 

Before you make any F&F offer, make sure yo claim back ALL late fees, overlimit fees, returned item fees plus compound interest. They are all reclaimable.

 

Only once you have these plus the PPI removed from the balance, should you do any calculations .

[Neeta]

I had misunderstood and thought that charges couldn't be reclaimed from credit cards, after further reading and the posts above I realise that refers to bank charges and not credit card so I'll look into that now. In the meantime would you leave the PPI offer and not accept it yet? There is no time limit detailed on the letter from the CC company.

 

Thanks for your advice

 

N

[rebel11]

What the guys are saying is work out what the PPI claim should be, don't take their word for it. Then go back to them and tell them what it should be. And yes, claim back all Penalty Charges with Compounded Contractual Interest.

 

I had misunderstood and thought that charges couldn't be reclaimed from credit cards, after further reading and the posts above I realise that refers to bank charges and not credit card so I'll look into that now. In the meantime would you leave the PPI offer and not accept it yet? There is no time limit detailed on the letter from the CC company.

 

Thanks for your advice

 

N