Barclaycard PPI claim following SAR

[dx100uk]

i think you should go for non compliance of data rather first

 

the link / details are in that thread you listed.

 

dx

[wilko999]

I'm having exactly the same issues as well. Been fobbed off twice asking for calculations - my offer very similar. Spreadsheet suggests I should have £26k owed back - offer of just over 6k. no idea how they are arriving at that figure and no idea where to go to next either. I'll watch this with interest and follow suit!

[anney63]

Try emailing [email protected] he is the CEO of Barclaycard . If he gets enough mailsmaybe he will get something done

[Paraman1]

Thanks for the replies.

 

Dx100uk. Non compliance is what I meant by submitting the N1form to county court to get Barclays to release the requested statements and basis of calculations. I may send a letter before action and then wait to see if ICO get back to me before proceeding. Unless you advise differently?.

 

Wilco 999. I know its frustrating to say the least. Have you got a link to your own thread as I would be interested to see the similarities.

 

Hi Anney63. I’ve been following your thread with interest and I will take your advice to contact the CEO in order to make my intentions clear. Have you had any response in this regard?

[anney63]

Not yet but my case is with the Star Chamber which is the top and was sent there on 18th December . Barclays are slow thats why I maile CEO . I sent copy of the maile by post and faxe so there are plenty of copies in B/card to hopefully get something done

[Paraman1]

After a lot of pressure on Barclays to provide more information regarding their refund offer, I have now received statement figures to January 2001.

That pressure included a letter and email to David Chan (CEO of Barclaycard) threatening court action citing non compliance under the data protection act, A written complaint including all correspondence to ICO and more letters to data protection and customer relations. Firstly I received statements to 2004 and after complaining further, a letter and statement figures to 2001.

 

In the letter they still confirm that their offer is correct and state the following (abridged)

 

“ The refund is made up of the insurance premium you paid plus the interest. The payment also includes an extra amount of 8% interest per year as compensation.

 

Premiums

The premium refund is calculated by adding all premiums paid since inception of PPI policy. Your policy was active from 24th Jan 1995 until 3rd Feb 2010.

The value of payments made since Jan 2001 has been taken directly from statement records we still hold.

 

We use details from first available statements on our records and work back to the point at which the policy was sold. This is based on the assumption that your PPI charges and balance would have reduced at a steady rate to zero for the period dating back to when the policy was sold.

 

If the first two statements available for your account show a value of Zero then we have assumed that the balance on your account was also zero for the period dating back to when the policy was sold

 

This averaging method has been used to calculate the period from 24th Jan 1995 until Jan 2001

 

Compound interest

When a PPI premium is charged it is added to the balance of the account and attracts interest charges at the purchase rate applicable at the time. Interest is also added to the balance and the following month any outstanding balance will incur interest charges.

We have calculated the interest charged on the PPI premiums throughout the term, taking into account the effect of compounding and using purchase interest rate.

 

8% interest (simple interest calculation)

We calculate 8% interest on the individual figure concerned for the number of days from the date of the charge until the date of calculation.

We will pay a simple interest amount if the calculated cumulative total refund amount is greater than the original card balance in any month. If this occurs we will pay 8% on the difference between the two, and if there is a time difference between when the PPI policy was cancelled and when we made the offer.

The 8% interest amount is in line with the recommendations from FOS.”

 

Ok, I don’t really understand a lot of this and hoping someone with more knowledge than I can explain.

 

I have now added the new figures to the spreadsheet (figures now to Jan 2001) and have calculated (from what they state in the letter) the following figures for the remaining dates from Jan 2001 to Jan 1995 -

 

The first two figures from Jan and Feb 2001 were £23.63 and £23. 49 (average £23.56) I then reduced the amount in monthly increments until zero (Jan 1995).

 

I have put the interest rate at 19.9% (purchase rate) and the total , although less than original calculations, is still 2½ times more than offer.

How would this spreadsheet stand up with regard to an FOS investigation?. Any other

advice or comments would be welcome?

 

　

　

　

　

[dx100uk]

If the first two statements available for your account show a value of Zero then we have assumed that the balance on your account was also zero for the period dating back to when the policy was sold

 

This averaging method has been used to calculate the period from 24th Jan 1995 until Jan 2001

 

 

how the hell can they assume that you did not use the card for all that time!!

 

what was the point in having it!!

 

utter bowlarks...

 

dx

[Paraman1]

My sentiments exactly.

I do have figures for the first 2 statements and have used those to decrease to zero (jan 1995).

Any ideas on the use of 19.9% on spreadsheet and FOS views on the subject?

[dx100uk]

they charged you compounded int so you are entitled to it back at that rate too

 

dx

[anney63]

This is exactly what they did to me. Sent to FOS and see what happens

[Paraman1]

I assume fos is the route you are now following anney63. Have they given you any idea of timescale?

 

Does anyone know how fos would view this with regard to the interest rate in the calculations and are there any similar cases that have set a precedent ?

[anney63]

No I haven't heard a thing since sending paperwork off I may give them a cal. I dont expect an early settlement

[Paraman1]

I am preparing another FosCISheet v101.xls to send to Barclaycard after receiving more statement figures to 2001 and just wanted to clarify the “CLAIM TO” date. The card ran from 1995 and I cancelled the PPI in February 2010. The card is still running and I was made an offer in September 2012.

[dx100uk]

today as int is still being charged at the compounded rate

 

dx

[Paraman1]

Thanks for that.

2 other questions if i may

1) the compound spreadsheet shows PPI paid plus compound interest to date, Do I add 8% redress or is that pushing it

2) Can i use the running credit accounts spreadsheet, which calculates payments, compound int and 8% redress, if I don't have all of the statements.

[dx100uk]

1. no you cant have both.

2. try if you wish

dx

[Paraman1]

I spoke to FOS to find out their views on compound interest relating to PPI refunds. They emailed me a compensation fact sheet which states

 

If the card account is still open but the PPI has been cancelled (as in my case) The Financial Business should -

 

a) Work out what the balance of the account would be if the consumer had not the PPI policy but had still made the same monthly payments (taking into account any interest and charges related to the PPI policy)

 

b) If this calculation puts the account into credit for any period, pay interest (simple, not compound) on the balance for that period at the rate of 8% a year

 

c) Pay the consumer the difference between the revised balance and the current balance

 

d) Write to the consumer and tell them how the revised balance, the interest and the difference were calculated

 

This is impossible to work out because I do not have balance figures from 1995 to 2001. It also seems that FOS will not look at compound interest for the PPI payments made since inception and prefer to use a simple 8% calculator.

 

Not sure at the moment whether getting FOS to investigate will get me any further.

 

Any ideas

[calcutta]

In the FOS list the a) effectively includes compound interest at the card rate.

 

Tricky to explain but it means each month one has to reconstruct the account as if it had never had PPI. This is done by removing the PPI premiums, and then removing the interest due to PPI. Interest due to PPI is not only the interest on the premiums in that month but also the interest on the interest due to PPI in the previous months.

 

The "interest on the interest" part is what effectively gives you compound interest included in the reconstructed balance in a)

 

It's just how FOS explains it.

 

You could estimate your average balance on the account for missing periods - that's what the banks SHOULD do if they have missing data.

[Paraman1]

Hi Calcutta, Thanks for the reply

 

Yes I’m in three minds which way to go with this at the moment.

a) Accept the offer

b) Go down the FOS route

c) Go the court route and claim compound interest in restitution

 

I have prepared 2 spreadsheets at the moment using the figures I have available. The missing figures are from Jan 95 to Jan 2001. It is accepted that the first PPI payment shown on record (£23.63) from Jan 2001 is then reduced in equal amounts to the inception of the account (Jan 95)

 

The first Spreadsheet is the compound interest calculator which shows a total figure in excess of 20k

 

The second spreadsheet is the FOS running PPI sheet. This has been tricky to reconstruct because I do not have the statements for the missing years. The way I did this was to fill in all the sections with the available statements and then add in the missing PPI payments (reducing back to zero) in the correct column. I then worked out the likely monthly balance on the account using the PPI figures (PPI charged at approx 79p per £100). I then put in approx minimum monthly payment figures and this gave me a rough idea of what I spent per month. This gave me an approximate idea of the account throughout its history. Unfortunately the total figure is very close to the offer of refund (7k).

 

If I go down the FOS route I may be waiting a very long time for a result and I cannot be sure that they would just agree with the banks offer.

 

Having looked around this forum I have noticed that those who have been successful with the court route have been claiming quite a bit less than 20k and the banks have always relented at the 11th hour. It may be different given the amount in question. I have looked at previous court cases (eg Sempra metals) but this was not specifically banks or PPI claims.

 

So there it is. My heart feels that the unnecessary PPI payments I made since 1995 should attract compound interest at the purchase rate of the credit card in restitution.

 

My head feels that I should accept the offer on the table and get on with my life.

 

Decisions, Decisions.