Amber -v- Egg PPI Refund

[BankFodder]

They won't understand what RD means. Ony refer to it if you really intend to claim them.

 

As far as expecting Egg to claw back the money - you are flogging a dead horse.

I think that you will have to make do and set about the rest of the business of claiming against yur bank and against Egg

[BankFodder]

It is too late to do this letter now. It has to be in before the money arrives

[amber]

Hmm, ok. Now I'm slightly confused.

On what basis should he go back to Egg and refuse the payout? I mean, what refusal reason to give? Because the interest is not enough, they did not include compounded interest?

 

Natwest bank charges reclaim - yes definately will be taking this all the way.

[BankFodder]

You should stop doing business on the phone if you don't record your calls.

 

I wouldn't describe this as misselling, but certainly Egg were negligent not to have cancelled the PPI on the basis of your new change of status. You have brought it to their attention and they have rectified the mistake and have reimbursed your premiums. However you are entitled at least to 8% pa interest on the premiums which continued to pay after you became self-employed. This is money paid under a mistake and you are wntitled to some compensation for it. Strictly speaking you could ask for restitutionary damages but it wouldn't be straightforward and you would end up in court - with a fairly good chance of winning - but in court all th same.

 

I really don't think that you are going to be able to divert the funds from your current account. However, you may as well give it a go.

 

Contact Egg tomorrow and put them on notice that you do not accept their offer and that your advice to them is to claw back the payment as you are intendting to pursue them for a better pay out.

Of course, you don't record your calls so you will have no evidence of any conversations. Why is it all of you people never record your calls - yet you carry out most important business with one of the most untrustworthy and cutthroat industries.

 

Confirm your conversation immediately by fax so that there is an instant written record of it all.

You will need to invest it with this kind of urgency if you are to stand any chance.

 

Write to them and tell them that you want to be properly compensated for the loss of your money as this was money paid under a mistake and you are not prepared to let them enjoy this benefit at your expense. tell them that you want the matter put before the Ombudsamn and tell them that yo condemn them for not offereing you a compensatory figure when they know full well that the FOS does make these awards and that you are confident that he will do so in your case.

 

I expect that the money will go thorugh to your bank and which case you could try sending a letter of appropriation saying that the money which is coming in is paid in by error and is earmarked for essential mortgage payments and that you want to excercise your right of appropriation in respect of the money.

take the letter round to your bank and give it to the manager. tell him that you want an answer straightaway and that if they do noit agree that you will be complaining to the Ombudsman about it.

 

Have you put your bank account into dispute? Have you informed them that any alleged debt there is disputed as it is comprised of charges> and that you want it all back? If not then you are leaving it all a bit late but you better get a move on and start dong that.

At the same time, begin the process of reclaiming all of your charges back from your bank. Go through the courts and start right now.

 

Let me say that the right of appropriation is normally excercised in resepct of benefits but you may as well try it as it is your only hope. However it is last ditch.

 

Don't threaten anyone with anything unless you are preapred to go through with it. If you aren't, then just don't bother.

...

[amber]

Thanks BankFodder. Sorry if I'm sounding a bit thick on this subject, just finding my feet ableit slowly. Should I just write to them with our complaint or is there a template to use specifically for this?

[amber]

FYI This was the one and only letter I sent out to Egg. The reply (the letter they sent to us) was the offer, the details I set out earlier in this thread.

 

1st September 2009

 

Egg Loans Plc

Dear Sir/Madam,

Ref: Account Number: XXXXXXXX

 

I was sold the Personal Insurance Policy on this account in January 2009 along with a Personal Loan but I now believe that I was miss-sold this policy for the following reasons:

 

This is due to the fact that I was not given the correct information when the Policy was sold to me, as

 

• Your Sales Person did not tell me that the Policy was OPTIONAL

• Your Sales Person was VERY assertive in selling me the Policy

• Your Sales Person IMPLIED that taking out the Policy was ESSENTIAL for me to get the associated credit

• Your Sales Person did NOT give me full information on what the Policy would and would not cover

• I am sure that the Policy was not sold in MY best interests

 

Unless you can satisfactorily justify to me that the Policy was fair and reasonable, I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would aware, added to each payment made.

 

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

 

Yours faithfully,

[amber]

Going to forward them this letter - can you guys check it over and tell me if it sounds ok, any constructive critism? Many thanks.

 

Thank you for your reply to my letter dated 1st September 2009 whereby I believe that I was miss-sold the Personal Insurance Policy on the above Personal Loan account. I have received your reply dated Thursday 22nd October 2009 in the post, yesterday evening Monday 26th October 2009 when I accessed my post as I upon arriving home at approx. 4:45pm. I telephoned Egg to discuss the content of this letter. I was informed to call back in the morning to speak to someone in the Refunds Department. That they where ‘closed right now’ and that ‘they do not commence work until 9:00am’.

 

SO THIS CORRESPONDENCE IN REPLY TO YOU - IS AT MY EARLIEST CONVIENIENCE TO DISCUSS THIS OFFER OR EVEN ACKNOWLEDGE RECEIPT OF YOUR LETTER.

 

This letter is to give you notice, that I DO NOT ACCEPT YOUR OFFER. I wish to be properly compensated for the loss of my money as this was money paid out under your mistake, as you have admitted by making me an offer. I am not prepared to let you enjoy this benefit at my expense. I more than interested in investigating further the conduct this PPI. I want this matter to be put before the Financial Ombudsman Service and I shall be instigating this. I condemn Egg Plc for not offering me a compensatory figure when I know full well and am perfectly clear, that the Financial Ombudsman Service does make these awards and I am confident that he will do in my case.

 

Please note that whilst this loan account is in dispute, no payments shall be made to the account until this matter is resolved.

 

My advice to you is to recall any payments you wanted to make to me as a matter of urgency as I intend to pursue this further with Egg and the matter is NOT resolved.

 

I look forward to a full and prompt response to this letter.

[amber]

Just an update on this situation.

 

1. Rang Egg to get fax number and inform them of our rejection of their offer.

2. Faxed a copy of the above letter.

3. Sent hard copy in the post yesterday by registered delivery.

4. Ordered a Truecall yesterday, and its arrived in the post today..Yay! Now that was first class service.

 

Hubby was the one who spoke to Egg (as its his account) and they are looking at clawing back the refunded PPI from his Natwest account where they deposited it. He is awaiting Egg to call him today with an update on this. So will keep you posted.

 

Being very proactive yesterday, I sent off many requests to different creditors for CCA's and SAR's along with the appropriate cheques for £1.00 & £10.00 respectively.

 

I presume its best to open separate threads for each of them as they are not PPI claims?

 

NatWest have no record of the SAR request they received over 3wks ago now (I know because I sent it recorded delivery but cheques not been cashed). Been informed I have to send in a new request.

 

Can I ask now with refusing Egg's offer on the PPI, what is the next stage to go to? How does one work out the contractual interest? (IF this is what I should be claiming as part of the 'whole' package).

 

Thanks

[amber]

Hi Everyone

 

Just bumping this thread. Been waiting some time now. No feedback at all from Egg. They never returned the call they said they where going to. Theres been no reply whatsover to the above letter I sent to them on the 27th October. I'm stuck and in a quandry now as to what to do next with this? Can someone please advise me what to do next after sending the above letter and refusing the Payment Protection Insurance cover refund? Do I add interest/compounded interest? Do I contact the Financial Ombudsman or do I wait to hear back from Egg first? I'm confused.

Thanks in advance.

[amber]

Does anybody have an idea how I can change the title of this thread?

 

Its past tense now, no longer urgent. I wish to change it to "Amber -v- Egg PPI Refund" and don't seem to see a button anywhere to email site admin. Thanks.

[amber]

Bumping this.

 

Can someone please offer some advice as to what the next steps should be for me to follow.

 

Received a letter this morning from Egg (not the reply I am awaiting on) reading the following:

 

Dear xxx

Loan agreement number xxxxxxx

Outstanding Balance xxxxxx

 

We recently sent you a default notice in relation to your loan account which you where not able to satisfy and the full outstanding balance is now due and payable.

 

However, as you have made an arrangement with us for payment of the outstanding balance, we are pleased to confirm that so long as you adhere to this arrangement no further action will be taken in respect of this account.

Yours sincerely blah blah

 

So having refused the refund and sat waiting for a response that does not seem to be coming, what to do next. They have issued us with a default.

They seem to be acknowledging the DMP agreement with the CCCS that we have set up but on the other hand firmly making us aware that they are the ones in control.

 

Can someone please help with some advice with this as the days are ticking by and I really need to be doing something but don't know what to do. Thanks in advance.

[alanalana]

Can somebody please help - this is very urgent. My husband sent off the preliminary letter contesting mis-sold PPI on his Egg loan.

 

Tonight he has just this min opened his mail to find a letter from Egg stating 'we have arranged for all premiums charged to your account to be refunded in full, together with associated interest charges; (this is the good news)

total amount around £4k. They state on the letter "we have sent the amount

]to your nominated bank account[/color]'

Please let us know you nominated bank account !!. THIS is a BIG problem. We do not want it to go there as we are severely overdrawn and contesting the charges on the bank account and as soon as it goes there, it will get swallowed up immediately, ALL £4k of i

 

He has rang Egg and they said there is nothing they can do, that they cannot recall it as its a BACS payment. Surely this is wrong?

Is there anything we can do?

The money has not appeared yet in the nominated bank account, so why won't they let us stop it and send us a cheque instead.

 

What we though was brilliant news is turning into a nightmare.

 

Any advice PLEASE, we have to ACT very FAST to try and resolve this.

 

Thanks in advance xxxx

 

More information is required on this thread;)

[amber]

alanalana what they meant by nominated bank account was his personal Natwest bank account that was being used to pay them there monthly direct debits. Which was severely overdrawn and in the red due to being over the authorised overdraft plus escallating bank fees.

 

The urgency at the inception of this thread has now passed. We sent them a letter refusing to accept believing we are owed more with contractual and/or compounded interest.

 

The money has since been swallowed up by Natwest.

 

Since the letter was sent and faxed and Egg where also informed over the phone on the same day and first thing the next morning, we have heard nothing.

 

Hence my requests for advice and assistance over what to do next as a next step as I am a complete novice and just finding my feet here.

 

And now I have a default notification today.

 

What was good news turned into not so good news at all. Why they didn't pay the PPI refund directly off the outstanding loan amount is anyones guess.

 

What further information do you require of me? Thanks.

[amber]

Does anybody have an idea how I can change the title of this thread?

 

Its past tense now, no longer urgent. I wish to change it to "Amber -v- Egg PPI Refund" and don't seem to see a button anywhere to email site admin. Thanks.

 

Bankfodder,

 

I've been trying to send you a PM regarding the above but your inbox is full. Any chance you could modify the title of my thread please? Thanks

 

Amber

[amber]

Update.

 

I've been reading Steven's thread regarding 'How to calculate Interest' and I've downloaded the PPI Calculator for Single Premium Policies. I'm wanting to get a stern letter in the post to Egg because they still have not got back to us and they need a kick up the @ss. (So does my other half for burying his head in the sand waiting complacently for feedback from them and not chasing them, but thats another story).

 

I need some expertise help to go check over the figures that I have worked out in the 'Statutory' and the 'Contractual' boxes.

 

PLUS I am still unsure if I claim for either/or (or both) in relation to this case, can someone please advise?

 

Here's those figures again:

 

PPI Premium on Loan £3538.40

Less any PPI premium refund taken off loan £556.03

Refund of interest charged on PPI premium at contractual loan rate £1116.37

Total refund due £4098.74

Amount they applied to pay the outstanding arrears £388.65

Remaining amount they send to his bank account £3710.09

 

About the loan:

 

Interest rate 6.73%

APR 6.9%

Principle Loan £10000.00

Loan Payment Protection £3538.40

Total Amount £13538.40

Number of monthly instalments; 84

84 Payments of: £202.54

 

Based on these figures and usual the PPI calculator, I get the following figures back:

 

Statutory

Total Paid £4649.44

Total Interest £1585.81

Total Refund Required £6235.25

 

OR

Contractual

Total Paid £4649.44

Total Interest £1606.28

Total Refund Required £6255.72

 

Now, I don't trust myself with figures, I'm absolutely crap at maths and I know you have to be red hot when you are dealing with these institutions.

 

So can anyone offer any advice over which I should be claiming, in which I can throw at them as my reason for refusing the fee they offered us?

 

Thanks for your time, sorry its so long winded. A xxx

Edited November 16, 2009 by amber
spelling

[amber]

Shamefully bumping this.

[alanalana]

Update.

 

I've been reading Steven's thread regarding 'How to calculate Interest' and I've downloaded the PPI Calculator for Single Premium Policies. I'm wanting to get a stern letter in the post to Egg because they still have not got back to us and they need a kick up the @ss. (So does my other half for burying his head in the sand waiting complacently for feedback from them and not chasing them, but thats another story).

 

I need some expertise help to go check over the figures that I have worked out in the 'Statutory' and the 'Contractual' boxes.

 

PLUS I am still unsure if I claim for either/or (or both) in relation to this case, can someone please advise?

 

Here's those figures again:

 

PPI Premium on Loan £3538.40

Less any PPI premium refund taken off loan £556.03

Refund of interest charged on PPI premium at contractual loan rate £1116.37

Total refund due £4098.74

Amount they applied to pay the outstanding arrears £388.65

Remaining amount they send to his bank account £3710.09

 

About the loan:

 

Interest rate 6.73%

APR 6.9%

Principle Loan £10000.00

Loan Payment Protection £3538.40

Total Amount £13538.40

Number of monthly instalments; 84

84 Payments of: £202.54

 

Based on these figures and usual the PPI calculator, I get the following figures back:

 

Statutory

Total Paid £4649.44

Total Interest £1585.81

Total Refund Required £6235.25

 

OR

Contractual

Total Paid £4649.44

Total Interest £1606.28

Total Refund Required £6255.72

 

Now, I don't trust myself with figures, I'm absolutely crap at maths and I know you have to be red hot when you are dealing with these institutions.

 

So can anyone offer any advice over which I should be claiming, in which I can throw at them as my reason for refusing the fee they offered us?

 

Thanks for your time, sorry its so long winded. A xxx

 

Sorry you have had to wait for a response to your posts.

 

Now I am not good at figures but here is some information from other threads.

 

 

As the Egg issue was a loan I believe the only interest on PPI that the Financial Ombudsman Service will award is the 8% simple statutory interest to any successful claim for mis-selling that they uphold.

 

I would advise you not to lose too much sleep over the figures if you go to the FOS with a complaint then you can insist that Egg provide you with a full breakdown of calculations as to how they arrived at the rebate figure.

 

I do not see how Egg having allegedly mis-sold PPI can then use any rebate to pay into a Natwest bank account just because it was being used to pay the direct debits on the Egg card. I know banks can offset arrears on one account against another so if Egg and Natwest are linked then they are allowed to take the refund to offset the arrears on another account. If however EGG and Natwest are not linked then I believe Egg have no right to repay PPI refunds to Natwest.

 

I am currently unable to check for any links as the FSA register website is currently unavailable.

 

IMO you should gather up all of the information posted so far and send all correspondence from all parties with a complaint to the Financial Ombudsman Service who will take a while to adjudicate but may well come up with a solution as they are currently upholding 90% of consumer complaints in favour of the consumer.

 

Links that may help with your claim for Mis-sold PPI

Financial Ombudsman Service

 

http://www.financial-ombudsman.org.u...-insurance.pdf

 

I hope this helps to keep the momentum going

 

aa

[amber]

I've had a reply from Egg today regarding the letter I sent to them in post no #32. I've typed it out below and wondered if anyone could offer some further advice for me as this is all very confusing and like double-dutch to me. I have sent all completed forms to the FOS as advised. Here's the contents of the letter:

 

Re: Your Egg Loan Account XXXXX

 

Thank you for your letter dated 27 Oct 2009, regarding your complaint. Please accept my apologies for the delay in my response.

 

After listening to the phonecall, Egg made the business decision in your case to refund the premiums paid and assoicated interest. At no point has Egg admitted liability.

 

In your letter you have stated, you want your complaint investigated further by the Financial Ombudsman Service. I await correspondence from your case handler. Once the case has been passed to the Financial Ombudsman Service, we will deal directly with the adjudicator, dealing with your case.

 

Please find enclosed a breakdown of the payment protection premium for each month of your loan. The calculation is based on a mathematical formula called the Rule of 78. It is also sometimes refered to as "the sum of the digits". This allows us to determine how much insurance you have paid at any point in your loan.

 

To calculate the insurance amount payable under the Rule of 78's, first, add up all the digits for the number of payments scheduled to be made. For a 12-month loan this would be 1 + 2 + 3 + 4.....+12 = 78 units. In the first month, before making any payments, you have the use of the entire amount borrowed. You thus pay 12/78 of the total insurance in the first month of the loan. In the second month, you pay 11/78; in the third, 10/78; and so on down to the last payment, 1/78. Likewise, the sum of the digits for a 48-month loan would be 1 + 2 + 3....+47 + 48 = 1176 units and you would pay 48/1176 of the total interest in the first month, 47/1176 in the second month, and so on.

 

It is important to remember that insurance is calculated for each month that the loan is in place, rather than for each monthly repayment. To calculate how much insurance will be saved by early repayment of your loan, simply add the digits for the remaining payments and multiply the fraction by the full payment protection premium.

 

If there is anything in this letter that you wish to discuss of which needs further explanation, please contact us using the details provided.

 

 

And thats it. They sent me a list of calculations of which I will scan and post up. They mention "after listening to the phonecall, Egg made the business decision to refund the premiums". This is bull****. When my husband rang up that evening at 4:50 approx he was told the refund department was shut and to call back in the morning. The phone operative he spoke to said there was no way he could stop the BACS payment. THEREFORE how could Egg have a made a business decision on that phonecall when they had already instructed a BACS payment which had promptly arrived in the account first thing in the morning after the call.

 

Please can anyone offer any advice as to what to do next with this? I don't understand their 'Rule of 78' as maths is not my forte, all I know is that it didn't include the interest he had paid on top of the premiums had the premiums not been on his account in the first instance.

 

Also, is it worth me just taking this through the courts instead of the FOS (just a thought, thinking the FOS are going to be swamped and take an absolute age to get back to me regarding this).

 

Thanks for reading. A x

[amber]

Bump

[alanalana]

I've had a reply from Egg today regarding the letter I sent to them in post no #32. I've typed it out below and wondered if anyone could offer some further advice for me as this is all very confusing and like double-dutch to me. I have sent all completed forms to the FOS as advised. Here's the contents of the letter:

 

Re: Your Egg Loan Account XXXXX

 

Thank you for your letter dated 27 Oct 2009, regarding your complaint. Please accept my apologies for the delay in my response.

 

After listening to the phonecall, Egg made the business decision in your case to refund the premiums paid and assoicated interest. At no point has Egg admitted liability.

 

In your letter you have stated, you want your complaint investigated further by the Financial Ombudsman Service. I await correspondence from your case handler. Once the case has been passed to the Financial Ombudsman Service, we will deal directly with the adjudicator, dealing with your case.

 

Please find enclosed a breakdown of the payment protection premium for each month of your loan. The calculation is based on a mathematical formula called the Rule of 78. It is also sometimes refered to as "the sum of the digits". This allows us to determine how much insurance you have paid at any point in your loan.

 

To calculate the insurance amount payable under the Rule of 78's, first, add up all the digits for the number of payments scheduled to be made. For a 12-month loan this would be 1 + 2 + 3 + 4.....+12 = 78 units. In the first month, before making any payments, you have the use of the entire amount borrowed. You thus pay 12/78 of the total insurance in the first month of the loan. In the second month, you pay 11/78; in the third, 10/78; and so on down to the last payment, 1/78. Likewise, the sum of the digits for a 48-month loan would be 1 + 2 + 3....+47 + 48 = 1176 units and you would pay 48/1176 of the total interest in the first month, 47/1176 in the second month, and so on.

 

It is important to remember that insurance is calculated for each month that the loan is in place, rather than for each monthly repayment. To calculate how much insurance will be saved by early repayment of your loan, simply add the digits for the remaining payments and multiply the fraction by the full payment protection premium.

 

If there is anything in this letter that you wish to discuss of which needs further explanation, please contact us using the details provided.

 

 

And thats it. They sent me a list of calculations of which I will scan and post up. They mention "after listening to the phonecall, Egg made the business decision to refund the premiums". This is bull****. When my husband rang up that evening at 4:50 approx he was told the refund department was shut and to call back in the morning. The phone operative he spoke to said there was no way he could stop the BACS payment. THEREFORE how could Egg have a made a business decision on that phonecall when they had already instructed a BACS payment which had promptly arrived in the account first thing in the morning after the call.

 

Please can anyone offer any advice as to what to do next with this? I don't understand their 'Rule of 78' as maths is not my forte, all I know is that it didn't include the interest he had paid on top of the premiums had the premiums not been on his account in the first instance.

 

Also, is it worth me just taking this through the courts instead of the FOS (just a thought, thinking the FOS are going to be swamped and take an absolute age to get back to me regarding this).

 

Thanks for reading. A x

 

As you have received their final offer and you are not happy with it I would suggest a complaint to the FOS. I am also not up on rule of 78 but the FOS will be able to sort that out for you. You can always insist on a full breakdown of the calculations Egg uses before you agree to accept any settlement.

[reidnet]

Its been a while since I fought with Firstplus re their use of the rule of 78 which was to calculate early settlement figures. The rule of 78 is no longer used in new agreements as it was in fact considered by the OFT etc as being unfair to consumers.

 

I fought their settlement figure on the grounds of being unfare and after a bit of fight they gave in and refunded the extra when I raised a summons.

 

I will look through and see if I can find all my notes on that one, I have moved house a couple of times since then and may not have the printed notes but I should have them archived on PC somewhere.

 

Ian

[alanalana]

Its been a while since I fought with Firstplus re their use of the rule of 78 which was to calculate early settlement figures. The rule of 78 is no longer used in new agreements as it was in fact considered by the OFT etc as being unfair to consumers.

 

I fought their settlement figure on the grounds of being unfare and after a bit of fight they gave in and refunded the extra when I raised a summons.

 

I will look through and see if I can find all my notes on that one, I have moved house a couple of times since then and may not have the printed notes but I should have them archived on PC somewhere.

 

Ian

 

I am sure advice on this rule of 78 would be most welcomed. I have just tended to pass all to the FOS, put on my waiting cap (actually hibernation cap) and wait for a result and so far have two from the FOS and two settlements without the FOS and more to go.

 

aa