MBNA PPI Query

[Smoothound]

Hi

 

They would have worked the figures on a regulatory based system where by you get back the PPI premium and the interest at contractual rate attributable to those charges. In addition you would get 8% interest on any period where the removal of the PPI from the account results in a credit balance and you get 8% simple interest on that credit balance.

 

Here's a spreadsheet you can use to calculate a regulatory based award on a credit card

 

[ATTACH]33399[/ATTACH]

 

If you are going for interest in restitution then that is a straight compound interest calculation

 

ims

 

Hi ims21.

 

I've mentioned this before on this thread that I can't use that sheet as I don't actually have the statements to work from. I am just looking at the figures on the sheet they've sent the FOS and then been forwarded to me. I just don't see how they can have got to those figures! The PPI amount is the same for 3 months then rises a bit and stays the same for 4 months, the interest rises slightly each month then the PPI amount goes to zero and the interest goes up by x6 or so. Over the span of 7 months there is no Statutory Interest until there is no PPI being paid and then it gets added. I just don't understand how it can work like that? Maybe I'm missing something obvious? I'm still waiting to be allocated an adjudicator so no one at the FOS will discuss it currently

[ims21]

Hi ims21.

 

I've mentioned this before on this thread that I can't use that sheet as I don't actually have the statements to work from. I am just looking at the figures on the sheet they've sent the FOS and then been forwarded to me. I just don't see how they can have got to those figures! The PPI amount is the same for 3 months then rises a bit and stays the same for 4 months, the interest rises slightly each month then the PPI amount goes to zero and the interest goes up by x6 or so. Over the span of 7 months there is no Statutory Interest until there is no PPI being paid and then it gets added. I just don't understand how it can work like that? Maybe I'm missing something obvious? I'm still waiting to be allocated an adjudicator so no one at the FOS will discuss it currently

 

Hi

 

Apologies SH....note to self...review thread before answering

 

So we cannot check exactly but the principles will be as follows.

 

If the balance on the account was stable or thereabouts for a period othree months then the ppi monthly premium would be the same. If the balance due then rises a bit then so would the ppi premium and it would remain the same for the period that the balance remained about the same at that new higher balance.

 

The contractual interest will rise as it is compounded

 

There is no statutory interest all the time the card shows a balance due to the lender. It is only when the card balance goes into credit that 8% interest is awarded on that credit balance. So when the account is reconstructed without PPI on a month by month basis, if the reconstructed balance is in credit then 8% interest is awarded on that balance for that month.

 

Remember the general principle that the account should be reconstructed as though the PPI had never featured. The award would be the refund of the premiums paid plus any contractual interest charged on the premiums. Where the removal of PPI causes the reconstructed account balance to move into credit, 8% interest would be awarded on that credit balance.

 

ims

[Smoothound]

Ah right that explains my confusion then! I can see why the Stat interest is zero in places now. I'm still not quite sure why there is that big jump in compound on that one month though?

 

Just wish I could get my hands on all my true statements and see all the figures for myself. I still don't believe I had zero balance on the card for 2/3rds of its life

[ims21]

Ah right that explains my confusion then! I can see why the Stat interest is zero in places now. I'm still not quite sure why there is that big jump in compound on that one month though?

 

Could be that the increased premiums caused the compund interest to rise at a higher rate of knots

Just wish I could get my hands on all my true statements and see all the figures for myself. I still don't believe I had zero balance on the card for 2/3rds of its life

 

It may not have had in the days when the card was operating with PPI. However, when the PPI and associated interest is removed it could have caused the revised (or reconstructed) balance to be in credit as there would have been a lot less expenses on the account.

 

ims

[Smoothound]

I'm guessing now I am probably not likely to get much more than what has been provided so far then in that case? Only thing that still puzzles me really is why there are no entries at all before August 1999 as the card started in October 1994? I would've thought even with the removal of the PPI there would be some figures, they have not even listed the dates and put in zero balances?

[Smoothound]

Having waited and waited and again heard nothing

 

I phoned the FOS again last week who told me that they had emailed MBNA about the missing figures in Jan but heard nothing back so far!!

 

I asked them to chase it up and moaned about their lack of keeping me up to date with events and apparent lack of commitment meant to persuing this claim

 

Their excuse was that they were extremely busy! I know this but feel they should at least keep us informed

 

Upshot is that a couple of days later they phoned to say that those figures had been lost by MBNA in a system move or something

and that MBNA were currently trying to reconstruct them somehow and as an apology MBNA would be adding £100 to the figure for my inconvenience!!

 

Needs to be more like £1000 if you ask me for the hassle, chasing I have had to do

and the fact they tried to fob me off with a partial payment in the first place nearly a year ago now

and ignored my letter asking for a full breakdown of the figures etc.

back then

[Smoothound]

I now have an updated offer but it's still a bit of a joke as it is again not a proper breakdown just an amount, interest and stat interest, oh yes £100 for my inconvenience!

 

As there was no comment to my previous post I guess it's not worth persuing this any further even though I feel £100 is ridiculous for 3 years of agro, messing around, no response to letters and indeed barefaced lying by trying to wriggle out of paying out in full!

[dx100uk]

i'd still demand the calculations

 

you are within your right to do so.

 

dx

[Smoothound]

FOS told me the letter would include a breakdown but nothing apart from final figure plus 2 lots of interest! To be honest I'm peeved because of the way I originally calculated it is far removed from the FOS way so the figures are wildly different! I can actually accept it if this is the way it has to be done but what sticks in my craw is the paltry £100 offered for all the ignoring, messing, lying and just general time wasting that has gone on throughout this case The FOS are as guilty as their letter makes little sense when you read it!

[dx100uk]

did you use the FOS running SOC?

 

dx

[Smoothound]

I didn't use FOS way because when I put my claim in I was told to calculate it out separately plus I had very few statements with actual figures on as I've said before. My figures were mostly pulled from my Comms Log and estimated where I didn't have them. The FOS way arrives at much lower figures it seems because of the way card payments are applied to the premium first which in my eyes is just the big boys sticking together

 

This second payment has come about because of stuff i've mentioned previously but I will repeat.

 

1/ Wrote to MBNA with old style figures and waited ages and finally got a full and final offer figure 05/11 with no breakdown.

2/ Accepted offer as partial because figures were no where near mine but asked for full breakdown and said it wasn't full and final until figures were supplied.

3/ No further contact from MBNA ie. I was ignored.

4/ Filled in FOS questionnaire and put it into their hands

5/ FOS ignored questionnaire and started new claim

6/ MBNA/FOS wasted months doing this I don't think either contacted the other until MBNA finally told FOS this claim had been settled back in 05/11 as per 1 above.

7/ During all this mucking about I had little or no communication from FOS at all unless I phoned or wrote to them.

8/ During one of these phone calls I was told that MBNA had told them it had been settled but they failed to notify me and my file just sat dormant for weeks because I wasn't informed.

9/ I told them if they'd actually read my questionnaire they would have known all this before they restarted the claim but they said they restart every claim!

10/ I then asked for a breakdown of the early figures which MBNA finally emailed to FOS and FOS emailed to me after I phoned yet again and chased them up.

11/ Spreadsheet is attached and has loads of missing figures which I queried with FOS and was told they would look into it and I would be assigned an adjudicator.

12/ More time passed and I phoned again after not hearing anything to be told MBNA have lost loads of early figures in a "systems move" and are trying to reconstitute them! They could have told me this aback at point 2/3 but chose to stay silent and hoped I'd just go away!

13/ I then phoned again recently and was told that MBNA had a figure for the lost stuff and were also going to add £100 to it for my inconvenience etc. Which I have now received but it is just a figure plus 2 lots of interest and £100 no breakdown.

 

My main gripe now is the fact that now MBNA are admitting there was actually more to the claim than when they "settled full and final" back in May last year the I&E payment of £100 is a complete P take for sure That's without taking into account the limp wristed way the FOS calculate the repayment of the premiums and interest

MBNA Figures.xls

[Smoothound]

Spoke to the FOS today about the lack of breakdown and the pitiful inconvenience payment to be told that the breakdown is ok and I am lucky to be offered £100 as they don't normally pay anything for this at all!!! After further discussion the girl agreed to ask MBNA for a full month by month breakdown of the new figures which will be emailed to me ASAP. So more waiting and inconvenience to come and I also notice on the offer letter they are still allowed a further 10 weeks to contact me personally once I do accept the offer

[Smoothound]

Sorry to drag this old thread up but I thought I'd ask the question here rather than just randomly in the MBNA section. Having got a full and final settlement on this a while back. I'm now a bit annoyed that I never thought at the time to add in/do a separate claim for unfair charges etc. Seeing as the last letter from MBNA said full and final does that mean I cannot go back and try to get my charges or does the full and final just apply to the PPI?

 

Thanks for listening.

[dx100uk]

sure you can

 

but you'll prob only get the last 6yrs from today.

 

dx

[ken100464]

Depends what the charges were. Overlimits caused by the PPI and late fees if the recon balance was in credit should have been taken out when you did your reclaim. Would suspect these should be part of your Full and Final as you cant go back and have more dibs at it for this reason. If you didnt pick it up then would think they would be referring you to your acceptance letter.

 

So a pure charges reclaim is what you have.

 

My own take and maybe not the same as some on here is reclaiming charges became a whole lot harder from summer 2012. Not impossible I grant.

 

Our last reclaim for charges has been rejected by FOS this weekend. So all the twaddle on how easy it was is long gone. Its court or nothing now. We tried every single account 7 in all and failed on all. Total waste of time. If had known it was court or nothing back then I would have done things differently.

 

Furthermore it will be limitations law first to get at any of the meaty charges pre summer 2006. If you fail with that then you are just arguing £12 post 2006 charges as unfair. Alot harder to do than the meaty ones. If your account ended before summer 2006 then I would suspect you are after a dead duck tbh

 

Just my opinion after trying this the last 8 months. PS FOS are quoting this line aswell so the banks have them in their back pocket now.

[Smoothound]

OK. The main reason I asked is because I was just about to embark on a Barclaycard claim as I've been running to standstill for years and they are charging me £12 pm because I'm over limit! Reason I'm over limit is because they reduced my limit from £2500 to £0 Just thought it might be worth looking into the charges on my old MBNA account too!

[ken100464]

Suspect your Barclaycard claim would be somewhat different and would stand on fall on the unreasonableness of paying overlimits on a balance they have reduced. An account they have closed and expect you to clear with a reducing limit as you do is something very different to an account closed limit set to zero and if you dont pay up penalty fees are applied.

 

They certainly dont seem to be treating you fairly. But as a whole and not the individual charge being fair.

 

I certainly would be after the Barclays charges as you are but think the MBNA will be a tad more difficult but not impossible.

 

Even a stopping of these panalty fees in the future would be a small victory but you certainly dont get if you dont ask.

 

Good luck on them.

[Smoothound]

Well the MBNA card goes back to 1994 and the last statement entries I have are Jan 2010. I never got any statement entries earlier than Jan 2006. I guesstimated my prior to 2006 PPI charges.

 

The Late fees etc. were never taken out at the time the PPI was repaid so as far as I am concerned still owed as the Full and Final is about the PPI claim nothing else. The card was defaulted any way and passed to Experto who took me to court for the balance and because I didn't really understand or have the confidence to defend it I ended up with a CCJ and £25 a month for a few years!

 

I have put the charges in a sheet and from 2006 to the end of the card the charges amount to £360 and the interest just under £600 so nigh on £1000 possibly owed still not including the more interesting ones prior to 2006

[Smoothound]

BC have just called my phone number 15 to 20 times without a break! In my book that is harassment!! Just gone to my phone log and although the number came up each time there are no entries for today at all How the hell did they do that?

[Smoothound]

Wrong thread

Edited April 14, 2013 by Smoothound
Wrong thread again!!