Clarification on 8% interest entitlement

[thestatman]

Hi guys was just looking for some clarification on the 8% interest payments.

 

I have just received an offer from Barclaycard for a PPI claim of just under £2100.

 

The amount comes from a credit card (initially with Goldfish).

 

When I received the offer the break down of the payments indicated that I am not due any interest at 8%.

 

When I rang to query this I was told that because the PPI was still active as it hadn't been cancelled

and as such I was not due any interest at 8% as this interest only begins to accrue from the point at which the policy is cancelled.

 

Just wanted to know if this is correct and standard procedure?

[ims21]

If the card is still live then it may well be that they are correct.

 

What you get on a card under a regulatory award is...

 

1 -> Refund of all premiums.

 

2 -> Any contractual interest charged as a result of the PPI

 

3 -> The account should be reconstructed and for any period where the reconstructed balance shows a credit, 8% simple is awarded on that balance for that period.

 

4 -> Where a card is paid off and closed, there will be a difference between the reconstructed balance and the actual amount paid off. 8% simple would be awarded on this dofference running from the date of payment up to the date of settlement.

 

 

If the PPI is still running on this account you need to get it cancelled right away.

[thestatman]

Thanks for the response ims21. I didn't think they'd be telling lies but thought it worth checking! I cancelled it during the phone call yesterday and i'm awaiting a letter to confirm this.