Storecard PPI

[pink1808]

Hi could someone please help?

 

I have had a offer letter for my PPI paid on my house of fraser store card

but they are offering me refund of premiums paid plus 8% simple interest per ann

 

here are details

 

start date 01/12/95

End date 13/03/2013

 

perm piad £188.88

simple int £103.35

 

total due £292.23

 

 

now all its great getting a refund but not sure if I am thinking right should I work it out as you would a credit card with the cost of monthly interest rate and so on ?

 

 

Any advice would be great Thanks

[ims21]

Yes you should be working it out rather like a credit card.

 

Have you got all of the statements of account?

[pink1808]

Hi Thanks for the reply, no I have a few but not a lot I have just mailed Genworth to ask for a breakdown with dates and premiums paid and questioned the interest thing so will see what they say but I have a rough idea on what I have paid which is about right to what they have said its just the interest thing that puzzeled me because I would have had to pay interest every month on my card.

 

Thanks again

[ims21]

Ye you are right, you should get the contractual interest back.

 

In summary you should get...

 

1 -> The premiums charged.

 

2 -> Any contractual interest charged as a result of the premiums.

 

3 -> The account should be reconstructed with the above removed and if in any month the reconstructed account shows a credit balance you should get 8% simple interest on that credit balance for that month

[pink1808]

Thank you that's what I thought will let you know what they say

[pink1808]

here is my reply from Genworth

 

 

Your redress was calculated as follows:

Based on the Premium paid by you of £188.88, policy start date of 01/12/1995, policy end date of 15/03/2013, the monthly premium has been calculated as £0.91. 8% Simple interest is then applied to each individual monthly premium up to the date of the Redress Payment. 20% of the Interest (20% of the 8% Simple Interest) is withheld as the HMRC requires that this be paid directly to them”

 

 

 

the thing is I haven't used the account since about 2001 so how can they say end date 15/03/2013 and also when I contacted Santander over this matter they said they didnt have any details as the account has been closed for so long !!!

 

Any Help thanks

[ims21]

What they mean is that they have stopped the policy form 15th March and calculated the 8% interest on the premiums paid up that date.

 

As far as HMRC goes, it is not a "requirement" as such but some institutions do take 20% basic rate tax off at source so it means that any tax due as a result of that interest has been paid. You will need to declare that n your next tax return so that your tax declarations of income and tax paid are correct.

[pink1808]

Many thanks for your reply.

 

Does how they have paid the interest sound about right to you ? or should I say something about not using the account since 2001 or want it make any difference ? also I am a stay at home mum who doesn't work will I still have to pay tax ?

 

Many thanks

[ims21]

As it is Genworth who are offering the refund they will not account for any interest you have paid on the card as a result of the PPI.

 

However, they are giving you a straight 8% on all of the premiums paid running from the date of the premium to 15th March. That is different to the 8% which would be offered if it were done as in post #4 above since you would have only got 8% interest for the months when the account was in credit.

 

Given the age of the account, I would suggest that the way they have done this is not a bad result and if it were me I would take it.

 

As regards the tax, you will need to contact HMRC since if you are due a refund of this tax then they will be the one to action that.

[pink1808]

OK thanks, sorry about all questions its a minefield of whats right and wrong.

 

Thanks again