Capital One Upheld - Lower Than Expected

[CerberusSco]

My other half put in a speculative letter/claim for a PPI refund from Capital One when she had her credit card with them between 2007 - 2009.

 

She paid the account in full and closed it in 2009.

Her original credit limit was only £200.

 

She's had a letter back today upholding her complaint and an offer of £41.68 as a refund.

This amount was a lot less than expected to be fair.

 

They have made the following calculations:

 

£29.71 - Premiums

£1.11 - Associated Interest

£13.57 - Interest @ 8%

£2.71 - Deduction on 8% interest (Basic Rate Income Tax)

 

Now I told my other half to submit a SAR before making a claim so we could work out roughly how much she was owed,

but she didn't do this and this offer seems derisory and lower than she expected.

 

Is there anything that can be done at all?

 

I am tempted to send a 'thanks but no thanks' letter and add compensation to this amount.

 

I'm also thinking that they haven't calculated the interest @ 8% correctly.

 

It doesn't say if the 8% interest is per annum in which case is she entitled to 8% for every year since her account has been settled (2009)?

 

Thanks in advance.

[dx100uk]

8% PA on the total from account closure

 

ppi at their int rate from each monthly levy of it.till closure

 

dx

[ims21]

The key to this one will be whether the premiums and associated interest are correct.

 

If they are then the 8% might be about right.

 

For example, if the account was closed mid 2009 and paid off, the difference between the reconstructed balance and the balance actually paid would be £29.71 + £1.11 = £30.82.

 

8% simple on that amount for 4.5 years until now would be some £11.16.

 

There may be a couple of quid of interest accrued due to the card being in credit for some months when the PPI was removed and the account reconstructed.

[CerberusSco]

If they are correct is she entitled to reject the offer and add compensation to the amount for her time and effort she had to put in? I don't want her to take the mickey, but I feel as though she is entitled to slightly more than they have offered her.

 

Am I also right in thinking that she should get interest up until the point she became aware of and applied for a refund based on the mis-sale? So regardless if the card was paid off and closed in 2009 she should be entitled to 8% interest up until Dec 2013.

[ims21]

If they are correct is she entitled to reject the offer and add compensation to the amount for her time and effort she had to put in? I don't want her to take the mickey, but I feel as though she is entitled to slightly more than they have offered her.

 

Am I also right in thinking that she should get interest up until the point she became aware of and applied for a refund based on the mis-sale? So regardless if the card was paid off and closed in 2009 she should be entitled to 8% interest up until Dec 2013.

 

You said this in the opening post...

 

My other half put in a speculative letter/claim

 

Which indicates that only a letter was sent. What other time and effort was put in?

 

In any event, in an upheld claim the lender is only required to give back the premiums, the associated contractual interest and the appropriate amount of 8% compensatory interest (which is a better return than would be payable if it were in a bank, building society or many other places).

 

There is nothing to stop you asking but I would be extremely surprised if you get any more, assuming their calculations are correct.

 

I would not reject their offer though...if you are going to ask for more then do it without rejecting.

[Hortz]

You said this in the opening post...

 

 

 

Which indicates that only a letter was sent. What other time and effort was put in?

 

In any event, in an upheld claim the lender is only required to give back the premiums, the associated contractual interest and the appropriate amount of 8% compensatory interest (which is a better return than would be payable if it were in a bank, building society or many other places).

 

There is nothing to stop you asking but I would be extremely surprised if you get any more, assuming their calculations are correct.

 

I would not reject their offer though...if you are going to ask for more then do it without rejecting.

 

This sums it up perfectly.

 

If the credit limit was only £200 as the OP has stated and bearing in mind that most PPI was a maximum of £1 per £100 on the card then even if it had been maxed out for the full two years, that would only be £48 in premiums. The comments above are accurate as regards statutory interest.

 

The OP can ask for the monthly premium breakdown or even request the statements. However, it is solely based on how much the individual has paid.

[Hortz]

If they are correct is she entitled to reject the offer and add compensation to the amount for her time and effort she had to put in? I don't want her to take the mickey, but I feel as though she is entitled to slightly more than they have offered her.

 

Am I also right in thinking that she should get interest up until the point she became aware of and applied for a refund based on the mis-sale? So regardless if the card was paid off and closed in 2009 she should be entitled to 8% interest up until Dec 2013.

 

Entitled on what grounds? All you are entitled to in the event of an upheld complaint is what has been paid and the relevant interest/FOS 8% where applicable.

 

Again, the comments above are accurate. Since the opening post implies that the complaint was simply sent on the "off chance" basis (plus for this amount of money there won't have been a very detailed investigation done) I'd just accept it and have done with it. Or otherwise ask for a breakdown/statements as per my previous post.