Hi all, this is my first post and may be a bit long winded so please bear with me.
I complained to RBS about PPI on the 21/04/13 on a Mint c/c that I took out in Dec 2003 and 8 wks later received a reply along these lines,
You will be pleased to know I have finished my review into your concerns about your PPI. Your concerns are important to us.
In the circumstances, as a goodwill gesture and without admission of liability the bank is prepared to make you the offer set out below.
To cut a long story short they go on to offer me £888.62 broken down as follows...
Refund of premiums paid between 13 Dec 03 and 13 Jan 09 £532.43
Compound interest on premiums based on unterest rate charged on c/c £93.61
Total £626.04
Gross interest @ FOS rate £328.23
Less tax at 20% £65.65
Net interest £262.58
Total offer £888.62.
Now, I have only just paid off an outstanding balance of £105 which has been there since Jan 2009 (messy reasons, business going belly up, divorce etc) but not sure this is relevant!
On receiving this offer I phoned RBS and asked for a breakdown as it was a bit confusing how they had calculated it and this week I received said breakdown which showed nothing but the premiums id paid each month, so after searching this site for relevant calculators I did my own calculation.
Using the FOSCISheet v101 for the compound interest, at 18.9% APR it calculated it at £1757.88, lots more than the £93.61 RBS have offered. So today I phoned them again to point this out to them and a young lady told me I had 2 options if I didnt agree with their offer. 1/ Provide proof that I had paid more interest than they had offered, or 2/ Take it to the FSO.
I asked how I could prove it and she told me to provide bank statements which would show the ammount of interest paid!!! When I pointed out that bank statements would only show the single ammount paid off against the card and wouldnt show interest, she just said take it to the FSO!!!
Now my question is do I accept the offer of £888.62 or do I take it to the FSO based on the FSO spreadsheet calculation being so much higher than RBS offer?
Any help and advice would be appreciated and again I apologise for the long post.
Claygo