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PPI Premium Cap 1


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Afternoon All,:-)

I'm currently working on a PPI claim for a friend against Cap 1.

SAR has been sent off but while we're waiting I have been going through the statements they do have.

I have come across an anomaly that I haven't heard mentioned before with PPI.

The account had a £200 credit limit and on the statement I was looking at had over limit charges bringing the card balance to £460. It looks like the PPI premium that month (£3.62) was based upon the total card balance (£460).

As PPI would only pay your minimum payments, shouldn't it of been a case of the PPI premium being based upon the card balance minus penalty charges, as in the £200 credit limit?

The account was fully paid around 2008 and had some charges reimbursed in 2006/7 but this will also be looked at closely when the SAR comes back.

As usual thanks in advance.:-)

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Hi

 

The PPI premium would be based on the total balance, including any charges/fees etc because the minimum payment would be based on the balance including those as well.

 

In any event, it doesn't really matter 'cos you'll be claiming back all of the ppi payments and the charges too.

 

Regards

 

ims

 

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