Agency work

[shutmeup]

Hi, I'm trying to help a friend reclaim PPI on a Lloyds Credit Card, he opened the account in 1999 and at the time was a temporary worker for an agency.

 

I know that would be a reason for mis-sold if it was a loan but would it still count for a credit card?

 

He didnt get a full time job until 2 years after getting the card so would he just be able to claim for that period?

[ims21]

Yes that would still be good for a credit card.

 

The product was mis-sold at the time of the sale so he should reclaim everything for a mis-sold product, not just two years.

[shutmeup]

That's another good argument to use then.

 

He's just had his claim rejected by lloyds, applied for the card in the bank and was told by one of the staff to add ppi as it would better his chances of being accepted for the card, yet has just been told the staff would never have said anything like that.

 

I don't know how the complaint handler knows what was said in a branch 13 years ago!

 

Also in his original complaint he just added 8% stat interest but am i right in thinking you use the interest rate they were charging then add the 8% on top of that?

[ims21]

You should get back the premiums paid plus any contractual interest added as a result of them. The account should be reconstructed without the PPI and if in any period the reconstructed account shows a credit balance then 8% simple is paid on that credit balance for that period.

 

If the account is closed and paid off, there will be a difference between the balance actually paid and the reconstructed balance and 8% simple is paid on that difference running from the date the account was paid off to the date of settlement of the claim.

 

Have you got ALL of the statements of account? If not you won't be able to calculate the amount due back.

[shutmeup]

yes he has all the statements and even has his payslips from the time he opened the account showing he worked for an agency!

[ims21]

£rd spreadsheet here will help you work out what you might be due back.

 

Follow the instructions in the notes tab of the spreadsheet

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

[shutmeup]

He was only sent statements to Jan 2000 so missing the first 7 months of the account.

 

Should i now use the 4th spreadsheet and work out the interest on each charge at the APR they charged at the time?

[shutmeup]

Also i've noticed in their rejection letter that they state the policy booklet at the time would have shown any exclusions in making a ppi claim.

 

So would it still be a valid argument to use that he was a temporary worker or would they just say it was his own fault for not reading the terms and conditions correctly?

 

After a lot of reading and getting very confused am i correct in thinking you can only claim compound interest on each amount up until the account was closed? (2006)

Edited October 1, 2012 by shutmeup

[shutmeup]

Could anyone advise me if this calculation is correct as i'm getting in a pickle!!

 

PPi charges from 2000 to 2006 - £626.17

contractual interest until 2006 - £1029.23

 

Then do i add the 2 amounts together and claim the 8% simple from 2006 until now?

 

I've read too many threads today and my brains turned to mush now!

[ims21]

You should still complete the third spreadsheet I linked you to.

 

As you are missing 7 months then pick up the account at the point you do have information for.

 

Where it asks for the monthly spend, take the opening balance from the first statement you have and use that figure for the monthly spend. Then proceed as normal.

 

It won't be 100% accurate because you are missing the first seven months byt you could estimate that in the absence of any information.

 

If the account was closed and paid off, complete the sheet right up to the end of the account.

 

You will see that there is a difference between the actual balance paid off when the account was closed and the reconstructed balance per the spreadsheet. Enter that difference into this spreadsheet to work out the 8% due on that difference right up to date.

 

StatIntSheet v101.xls

 

You would be looking to get back the value calculated by the reconstruction spreadsheet plus the 8% interest calculated as described in this post.

[shutmeup]

Thanks,

 

i've been getting mixed up with the different way of working out ppi interest compared to unlawful charges interest.