M&S Chargecard/credit card PLEASE HELP *** SUCCESS ***

[ims21]

Hi

 

Still going through all the docs....will post back as soon as I have something sensible to report

 

Don't worry, I haven't forgotten you

[emmtay]

ok thanks ims

[ims21]

Ok so June 2006 was when they automatically changed this store card to a credit card.

 

Looks like the have used the right formula up to June 2006 and then applied the statutory interest from that date up to the date of settlement.

 

That would be right had the account been closed as it would conform to the FSA/fos rules.

 

However, the balance on the store card was transferred to a credit card and the balance included the PPI. From that point they were still charging contractual interest on the credit card so some of that interest was charged as a result of the included PPI balance.

 

So I would think it reasonable that you should get that back.

 

The overriding principle is that you should be put back in the position you would have been in had the PPI not been applied in the first place. The balance on the store card would have been lower at the point of transfer and subsequent interest would have been lower.

 

I can't see that they have made any provision for any interest refund after the account was made into a credit card and if it were me I'd question that with them.

 

ims

[emmtay]

Hi ims

Thanks for that, so, what should I tell them they should change? Or should I do a different spreadsheet and send that to them and explain what they're doing wrong? If so, please can you tell me which spreadsheet to do and what interest rate to use and for what period as I'm getting a bit confused now.

Thanks

emmtay

[emmtay]

Hi again

No it was June 2003 when they changed it to a c/c from a store card, so nearly 3 years as a c/c with a much higher balance!

cheers

[emmtay]

another thought...surely the statutory interest should be from first premium until settlement?

[ims21]

Hi ims

Thanks for that, so, what should I tell them they should change? Or should I do a different spreadsheet and send that to them and explain what they're doing wrong? If so, please can you tell me which spreadsheet to do and what interest rate to use and for what period as I'm getting a bit confused now.

Thanks

emmtay

 

If they were charging you contractual interest on the balance after 2006 then ask them why they have made no allowance for this in their calculations. Point out that the balance still included the PPI and therefore part of the contractual interest post 2006 was as a result of the balance being higher than it would have been had the PPI not been in there. See what they say.

 

Hi again

No it was June 2003 when they changed it to a c/c from a store card, so nearly 3 years as a c/c with a much higher balance!

cheers

 

So they have accounted for contractual interest from 2003 to 2006 and from then on see the point above.

 

 

another thought...surely the statutory interest should be from first premium until settlement?

 

No...see my previous posts on how the regulatory method calculates the statutory interest

 

ims

[emmtay]

Ok thanks, will send them an email this afternoon and let you know what they reply,

cheers

emmtay

[emmtay]

Just one more question for now:-)....would you take this to court or accept their offer?

[ims21]

See what they say about the interest post 2006

[emmtay]

ok, email sent! cheers

[emmtay]

Not a good result...here's their response-

 

Thank you for your email which I received this afternoon. I am sorry that you are still unhappy with our calculations and offer of redress.

 

Our Finance department has reviewed their calculations and firmly believe that the refund is correct.

 

They have confirmed that all contractual interest has been refunded.

 

The 8% statutory interest has been calculated on all the PPI premiums paid, which is the compensation to place you back in the position you would have been if the PPI hadn't been charged.

 

We believe the compensatory payment of £200 due to our initial error when calculating your refund is fair and reasonable.

 

As I previously informed you if you disagree with our calculations and redress then you must go back to the ombudsman and ask them to review our calculations.

 

Once again, I am sorry that you remain unhappy with our offer and compensation and I hope I've made M&S Money's position clear.

[ims21]

What answer did they give in respect of the query on the interest they charged post 2006?

[emmtay]

they didn't! This was their answer! What do you think I shoudl do? Court?

Emmtay

[ims21]

Write back and say that they haven't answered your question and you want a written reply. Remind them that you have asked a specific question and you want a specific answer.

 

Forget court at the moment

[emmtay]

ok, thanks

[emmtay]

Hi ims

As I thought, this was their answer....

 

Thank you for your email dated 03 June.

 

As I stated in my email to you on 01 June, our Finance department has

checked the refund of your Payment Protection Insurance (PPI) policy. The

calculation is correct and is in line with the Financial Services

Authority's (FSA) redress policy. In addition, the refund is in line with

the calculations that the Financial Ombudsman Service (FOS) use for the

redress of PPI.

 

With regards to the amount of compensation for our initial error in

calculating your PPI redress, M&S Money firmly believes this is fair and

reasonable.

 

In my last email, I did inform you to contact the FOS if you want to take

this further. By mentioning this again, I don’t wish to cause any more

upset. As I can’t help you any further you will need to ask the FOS to

review our calculation and compensatory payment

 

Once again, I'm sorry that you felt it necessary to contact me about this

matter and I trust I’ve been able to clarify our position again

 

I have sent a reply once again asking for an answer to the question, but i don't hold out much hope.

 

I really don't know what to do next...do I contact the FOS again, or what are my chances in court do you think? I don't have any experience in court, althoug i did claim my bank charges back through MCOL.

Any advice greatly welcomed

Emmtay

[ims21]

You need to press for an analysis of the calculations. If the lender will not provide them then fos can force them to give the breakdown.

 

If you look at the case studies and guidance on the fos website the lender is required to provide this information.

[citizenB]

If you can find a similar situation on the FOS site - then you could bring this to the attention of the person you have been in communication with. Or you could ask for your "complaint" to be shoved up the chain of command!

[emmtay]

Hi, thanks for replies, will see what they answer this time, and have a look at FOS in the mean time. Back soon!

[emmtay]

Hi, had a good search on FOS website and cannot find anything similar to mine

Not had a reply from M&S yet...normally they reply within 24 hours, so hopefully he is getting me the answer this time!

[ims21]

If you read the case studies they refer to requiring the lender to provide an analysis of how the figures are arrived at

[emmtay]

Yes I hope this time he comes back with a proper explaination of their workings, otherwise I will have to go back to FOS unless I brave court.

[emmtay]

Hi

Yet AGAIN, 3rd time now, I have received the same email just saying they believe the calculations are correct, blah, blah...to which I have now emailed the following.

 

 

 

Dear

I am not sure if I am not explaining myself clearly enough, but I STILL am not getting the answers to the questions I asked. Therefore, once again, I am asking for specific answers to a specific questions, and also require a FULL breakdown of how your figures have been calculated in each stage.

'The balance on the store card was transferred to a credit card and the balance included the PPI. From that point you were still charging contractual interest on the credit card so some of that interest was charged as a result of the included PPI balance, so I should get that back.

The overriding principle is that I should be put back in the position I would have been in had the PPI not been applied in the first place. I can't see that you have made any provision for any interest refund after the account was made into a credit card ?

If you were charging me contractual interest on the balance after 2006 then why have you made no allowance for this in your calculations. The balance still included the PPI and therefore part of the contractual interest post 2006 was as a result of the balance being higher than it would have been had the PPI not been in there?'

 

 

According to the rules, the lender is required to provide an analysis of how the figures are arrived at, and the complete workings. If the lender will not provide these then FOS can force them to give the breakdown.

PLEASE do not just send the same reply as you have done in your last 2 or 3 emails; IF your finance department are unable to answer these questions, then it is transparent that they do not know what they are doing.

I look forward to hearing your response urgently.

Yours sincerely

 

Emmtay

[citizenB]

I dont think you could have made it any clearer.. lets hope they pass it on to someone who understands the question.