Ripped off by the fos

[hermanthegerman]

I cant get out of my head how myself and many others have been ripped off by the FOS with regard to the contractual interest portion of a ppi reclaim.

 

The redress guidelines from the FOS have now changed so that companies are now paying CI.

 

Say for example two years ago you received redress from xyz via adjudication which consisted of £2500 refund of premiums and 8% statutory interest.The same claim today would probably net you three times as much due to CI.

 

To conclude redress through the FOS until this year did not put you back in the position you would have been if you didnt take out the PPI in the first place.This means that though people have been settled for their claim they are still paying for the PPI if the account is still active.

 

Rant over.

 

Anyone else feel the same way or in the same position?

[ims21]

Hi

 

Can you point us to the information where fos are now paying compound interest please?

 

ims

[alibobsy]

Yes would love to see this info, just deleted a SOC based on compound interest and reinputted it all into the stat interest rate sheet for a claim I am doing argghhhh.

 

Will see if I can rescue it from the recyle bin and hold onto it to see.

 

Ali x

[hermanthegerman]

Hi ims

 

I had a small claim through the FOS from xyz paid out after the judical review after being with the FOS for over two years.

 

The CI portion of the claim was three times more than the premiums and was paid out.This did not happen in 2009/2010.

 

I will look up the redress guidelines when i get chance but they have definitely changed.

 

Just look at the successful claims thread on mse recently too.CI is being paid after going through the FOS now!!

[candyapple1]

Surely that would mean, when dealing with bank before fos, can insist they do CI also?

[hermanthegerman]

The reconstruction of the credit-card account, to work out what the current balance would have been (where the account remains open) – or what the closing balance would have been (where the account has been cleared or closed) – if the consumer had made the same monthly payments but without PPI. This should be calculated by deducting the PPI premiums and the interest and charges that resulted from those premiums (including those arising because the ongoing monthly balance on the credit-card account was higher than it would have been, if the consumer had made the same payments to an account without PPI).

[candyapple1]

Does the fos running credit spreadsheet do all those things? I know it deducts ppi, and calculates interest on ppi, and the simple interest on any credit balance, but I do not think it recalculates what the interest payments would be on the new balance, cause that should be figured out, and the difference in interest paid should also be refunded, right? Are any banks doing this?

[hermanthegerman]

A certain bank in Chester now seems to be interpreting it that way but they are doing the calcs.Their calcs matched mine for what its worth.

[candyapple1]

Do you have a spreadsheet set up, with the formulas in it? I am going to have a go, will have the following columns:

 

Statement Date

Balance

Interest Charged

Balance Without PPI

Interest

 

On my sheet, in the last few yars, actual balance of 7000-8000, in the reconstructed without PPI, 2000-3000, so a big difference in the interest charges.

 

Just had a through, could you not again reconstruct the card, taking off the diference between the interest each month? I am sure the banks would not go for it, but realistically, think about it, eg estimated interest for balance of 1780.85 is 19.56, whereas interest on balance of 8000 plus is between 120-150 ish, that could at times actually make more of a difference than the PPI itself! Or I am taking this too far?

[hermanthegerman]

So this thread does not lose track, what i am trying to say is that a claim worth say £2k two years ago is now worth £6k because of changed fos guidelines to redress/different interpretation by certain banks.

 

Hence the title of the thread

[hermanthegerman]

Sorry ca

 

All i did with my claim was use a ci calculator and made a seperate page for my claim.

 

Too thick to construct a spreadsheet

[candyapple1]

Sorry htg, didn't mean to go off topic there.

[hermanthegerman]

Its fine CA.

 

[citizenB]

Spread sheets have already been produced by ims21 and others..

 

FosRunningPPI v101.xls

 

StatIntSheet v101.xls

 

CISheet v101.xls