Barclaycard PPI redress

[brown1950]

After nearly 2 years with the FOS - Barclaycard have now finally suggested the following redress:-

 

Total PPI payments = £534.00

Associated Fees = £808.00

Associated Interest = £1038.00

Statutory interest = £1351.76

 

My redress covers the following periods :-

 

Nov 1989 - Dec 1998 ( No statements - so account is reconstructed)

Jan 1999 - March 2007 ( Full statements provided - PPI cancelled March 2007)

 

I can upload the Barclaycard calculation schedule however in the meantime i cannot

understand why the associated interest is lower than the 8 % statutory interest.

 

Is this another Barclays PPI underpayment ? Would appreciate initial observations.

[dx100uk]

Poss because. The a/c entered a credit balance early on when it was reconstructed minus the PPI to the month

[brown1950]

Does that mean you think Barclaycard are underpaying my redress ?

[dx100uk]

if an account entered a credit balance

then under fOS rules

you are entitled to 8% stat int on that sum to the present day

 

if the account with in debit, contractual interest is charged at their rate.

 

the only way to be sure is to use the FOSRUNNING sheet

 

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

[brown1950]

Please find attached Barclaycard Calculation schedule set to me by FOS-

Your comments on the calculations would be appreciated.

[dx100uk]

you'll need to pop them all in a word doc first

then PDF that please

 

 

follow the upload

 

 

dx

[brown1950]

As requested herewith Barclaycard Calculation schedule in PDF

[brown1950]

As requested herewith Barclaycard Calculation schedule in PDF

 

Would appreciate comments on the PPI redress calculations.

The associated interest looks low ?

[dx100uk]

have done the FOS RUNNING SHEET yourself and checked it?

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?361925-Barclaycard-PPI-claim-following-SAR

[brown1950]

No i have not done the FOS running sheet and checked it. I am asking for help from experts on this website.

[Jedicris]

No i have not done the FOS running sheet and checked it. I am asking for help from experts on this website.

 

The help from the experts is to do the FOS running sheet.

 

 

You are the one who can do this

- you have all the required information.

Once you have done this, the experts will be able to give feedback.

 

At the moment it is like me asking you if the piece of string in my hand is long enough.

 

Do the FOS sheet and then come back.

[brown1950]

After nearly 2 years with the FOS - Barclaycard have now finally suggested the following redress:-

 

Total PPI payments = £534.00

Associated Fees = £808.00

Associated Interest = £1038.00

Statutory interest = £1351.76

 

My redress covers the following periods :-

 

Nov 1989 - Dec 1998 ( No statements - so account is reconstructed)

Jan 1999 - March 2007 ( Full statements provided - PPI cancelled March 2007)

 

I can upload the Barclaycard calculation schedule however in the meantime i cannot

understand why the associated interest is lower than the 8 % statutory interest.

 

Is this another Barclays PPI underpayment ? Would appreciate initial observations.

 

UPDATE

 

FOS Adjudicator has rejected my claim.

 

Despite asking Barclaycard 5 times and the FOS 8 times i still await an answer to the following questions :-

 

How has Barclaycard calculated the 'associated interest'' of £1038.00

As my PPI premiums attracted 'compound interest' at what rate was the associated interest refund calculated.?

 

Herewith are examples of the Barclaycard redress :-

 

1.3.94 PPI premium paid £2.00 - Barclaycard associated interest refund = £0.78 - Barclaycard purchase interest rate in March 1994 was 18.10% - I calculate compound interest refund should be £71.91

25.5.99 PPI Premium paid £3.52 - Barclaycard associated interest refund - £5.89 - Barclaycard purchase rate in May 1999 was 18.6% - i calculate compound interest refund should be £48.15

 

Should i take this to the Ombudsman or have i been 'barking up the wrong tree' in respect of compound interest refunds and putting me back into the same position as if Barclaycard had not charged me PPI ?

What exactly is your take on 'Associated interest'?

As Barclaycard have stated their charges for PPI attracted compound inetrest at the card purchase rate the PPI refunds should also be compounded ?

 

Your views would be appreciated.

[brown1950]

Any thoughts

[brown1950]

How has Barclaycard calculated the 'associated interest'' of £1038.00

 

 

FOS Adjudicator has finally put in writing answes to the above :-

 

Quote '''You told me that Barclaycard haven't refunded you the compound interest you're owed

You sent me a compound interest calculator to show hom much you feel Barclaycard's

refund should be on each premium. you've highlighted 3 examples of instances where this

hasn't been done on Barclaycards schedule. Dec 94, Dec 20, and Mar 04. You have also

included the Barclaycard purchase rate for each premium paid.

 

I've looked at the compound interest calculator you sent and i can see that you have taken

the amount charged for PPI on a specific month and looked at how many months have passed

since then and applied the interest of 21%(average) to work out the compound interest due to

you on that PPI charge.

 

I'd like to clarify that when refunding the associated interest due we'd expect a business to

only refund the extra interest you've paid because of the PPI. I've taken March 2004 as an

example. The known PPI payment you made that month was £3.95. In you email you sent

you feel that on this month you should be refunded £44.86 in associated interest.The total

interest you were charged on the credit card that month was £9.08. So we would expect

Barclaycard to calculate the proportion of that £9.08 you paid because of the PPI.

The amount Barclaycard have worked this out to be £3.98 '' Unquote''

 

So after 2 years of asking i have now received an explanation from the FOS to my

question of how do you calculate associated interest in respect of credit card PPI refunds.

or have I ?

[dx100uk]

yes but as that PPI was then charged int again on it on all following months.

it adds up. to the total [=compounded]

 

int on a monthly ppi charge is not ONLY limited/charged in that one month

that PPI balance exists in subsequent months till the OC stopped their int

or the PPI was cancelled

 

what planet are the FOS on?

 

dx

[brown1950]

And on another PPI credit card claim i have received another explanation from a different FOS Adjudicator as follows :

 

Quote '' I can see you have sent though a calculation for the interest charged due to the PPI.

 

 

As I have explained the additional interest added to your card because of the PPI will not be charged on a daily rate.

 

Your calculations show the interest rate charged in each month as a result of the PPI.

Therefore the interest should be worked out on the amount of the PPI in the balance for each particular month.

 

As an example in March 2000 the balance of your account was £1,188.02.

The interest charged on your balance was £17.95.

Your PPI charge was £7.91

we would expect the refund od associated interest to be proportional to the amount that was caused by the £7.91 PPI charge '' Unquote

[brown1950]

What can i present to the FOS to contradict their interpretations of associated interest (compound interest)

 

One thing i do know is that my credit card PPI refunds

do not put me back in the same position as if PPI had not been charged

(as should be the case quoted by FOS on their website)

[brown1950]

yes but as that PPI was then charged int again on it on all following months.

it adds up. to the total [=compounded]

 

 

int on a monthly ppi charge is not ONLY limited/charged in that one month

that PPI balance exists in subsequent months till the OC stopped their int

or the PPI was cancelled

 

 

what planet are the FOS on?

 

 

dx

 

Your suggestion on how best i should tackle the FOS would be appreciated.

[dx100uk]

the cisheet shows the total compounded interest charged month on month

from the date that ppi sum was levied.

 

the explanation by the fos is relevant only to the month the ppi was first levied

what about every other month after that when that PPI balance had more interest added

 

think you've got a newbie adjudicator there

 

dx

[brown1950]

Many thanks for your reply.

 

 

The problem I have is I have two PPI credit card claims with the FOS :-

 

M&S - dating back to 1991

Barclaycard - dating back to 1989

 

Both adjudicators are 'singing from the same sheet'

and because of the way they calculate the 'associated interest'

the FOS are reducing my claims by thousands of pounds.

Please see my earliers posts for the explanations from the two adjudicators.

[brown1950]

yes but as that PPI was then charged int again on it on all following months.

it adds up. to the total [=compounded]

 

int on a monthly ppi charge is not ONLY limited/charged in that one month

that PPI balance exists in subsequent months till the OC stopped their int

or the PPI was cancelled

 

what planet are the FOS on?

 

dx

 

ok put forward your argument about the compound interest /associated interest and received following replies from the 2 FOS adjudicators :-

 

a) as you do not accept my original findings

i have now passed your claim to the Ombudsman

this refers to the Barclaycard claim..

 

b) will look into this further and come back to you.

this refers to M&S claim.

 

will let you know how this develops.

[brown1950]

UPDATE

 

Both FOS adjudicators have now asked Barclaycard and M&S to re-calculate my

compensation.

 

Understand my files have not been passed to the Ombudsman (yet)

[dx100uk]

ok

[brown1950]

http://www.consumeractiongroup.co.uk/forum/showthread.php?443589-Monument-PBP-refund-**WON-£16k!!**&p=4935529#post4935529

for a card of that age the compound int will be impressive.

 

if you are wanting to check it correct

either send them a request for a complete breakdown

 

or send them an sar to get all the statements.

 

TBH: monument rarely cough up

but when they do they get it right.

 

I notice you refer to compound interest when settlement on PPI redress is expected.

 

Can you explain therefore that the

FOS do not expect Companies to pay 'associated interest '' compounded ?

[dx100uk]

its not associated interest

 

this credit was a credit card.

 

each month the outstanding bal has a set amount of interest added

 

that outstanding balance contains PPI.

 

so its compounded int.

 

 

unlike a loan, whereby the PPI is front loaded.