Cap 1 - Statutory Interest compensation for old PPI?

[Determined100]

I have received response from Capital One upholding a PPI complaint.

However, although the figures are fairly small (they suggest PPI Premiums paid were £157),

the amount of compensation offered does not (in my opinion) take into account the age of the 'issue' (account closed 18 years ago!).

 

Am I correct in suggesting that statutory interest compensation should be applied at a rate of 8% per annum (simple - not compound)?

 

Tried the calculators in CAG library but links don't seem to work!

 

Had similar concern with a couple of Barclaycard complaints

- upheld and compensation offered but with paltry interest calculations.

 

Did complain to BC but they stated that was their standard approach - and tough!

 

Does anyone have any knowledge as to what final settlement figures should be based upon?

 

Any help much appreciated!

 

Apologies - this posted in wrong Forum by mistake (should have been PPI) but cant move?

[dx100uk]

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

[Determined100]

Thanks dx100 - but did try the links and also in library - same problem - doesn't recognise file extension - comes up as 'attachment.php' not xls spreadsheet??

[Ford]

Does anyone have any knowledge as to what final settlement figures should be based upon

the fos; http://www.financial-ombudsman.org.uk/publications/technical_notes/PPI/redress.html#redresscc

 

also, ask for a breakdown.

[dx100uk]

so you don't have ms office loaded then?

 

edit:ah no I know your problem

you need to update IE11

 

do save as and rename to statint.xls

[Determined100]

Many thanks.... Certainly not straightforward!!

 

Had previously read their guidelines but struggled to interpret that to an account closed 18 years ago without all paperwork and where the company just provides headline figures for their calculation without explanation - very confusing!

 

Thanks dx100 - will try....

[Ford]

Many thanks.... Certainly not straightforward!! Had previously read their guidelines but struggled to interpret that to an account closed 18 years ago without all paperwork and where the company just provides headline figures for their calculation without explanation - very confusing!

get their breakdown.

if its too old for complete records the old 'reconstruction' may have been used.

the fos link gives some info re that.

scroll to their eg that most suits yours.

 

see also post #83 here for some useful info

http://www.consumeractiongroup.co.uk/forum/showthread.php?431815-LLoyds-Cardholder-Protection-Plan&p=5040695#post5040695

[Determined100]

Thanks Ford

- have read the thread you suggest although still confused as to the stat interest compensation - some suggest simple 8% per year (on total of PPI charges and associated interest) from account closure to date of redress

- whereas others refer to the 8% being calculated "if the sum of this PPI refund would have put you into a positive balance"

- which I would have no idea of!

 

 

This doesn't seem to provide redress for the 18 years they have held my monies (given that they accept the PPI was mis-sold)?

 

Their calculations (!) :-

PPI Premiums paid: £157

Associated Interest: £65

8% Interest: £7.12

Less tax on the 8%: -£1.42

 

 

Total amount being £228 - for an 18 year old debt - seems poor to me!

[Ford]

according to fos re a closed account;

 

 

it seems you need to consider 'For the periods where your account would have been in credit had you not had the PPI policy, we will pay you 8% per year simple interest on the amount you would have been in credit for the period you would have been in credit'

 

plus 8 % since on

'the difference between what your credit card balance was just before you closed your account and what it would have been without the PPI policy just before you closed your account..'

 

whilst factoring in that it is probably a reconstruction due to its age.

as said, get their calculation breakdown first. take it from there.

 

in other words;

8 % on

periods when (deemed) in credit, due to ppi missell.

plus on any 'difference' in closing balance, due to ppi missell.

 

the 'associated' interest covers the card interest, due to ppi missell.

[dx100uk]

the only way you can truly get a good idea

is to have all the statements and use the fosrunning sheet

[Determined100]

Ok, thanks all - guess a SAR is the only realistic way to go in order to calculate properly - but for the difference of £100 or so - highly questionable whether worthwhile?? Guess the banks realise that too!

[Ford]

indeed. it could help, for a tenner.

get the full breakdown. (no fee required for that)

get the full statements, if available.

then cross reference and calculate.

then can get the true picture of their calcs, if required

[dx100uk]

they're not right no though

[Ford]

- but for the difference of £100 or so - highly questionable whether worthwhile?? Guess the banks realise that too!

determined

what do you want to do? challenge or not.

if so, give them a ring tomorrow and ask for a full breakdown of their calculation as entitled to. you should get that within a couple of weeks.

in the meantime draft a sar letter. if the breakdown doesn't then look right...pursue

otherwise, accept it and have a beer on it.

[Determined100]

Will call Cap1 as suggested and see how they arrived at figures - and if not satisfactory, for the sake of a tenner, will go for a SAR - as you never know what else that may throw up! If nothing, guess best route forward is to just accept as it is and concentrate on (hopefully) more rewarding CC conflicts!

 

 

Just one final point on the Cap1 offer - aside from figures for PPI mis-sell - they state in letter, regards 'Plevin' issue that it is not relevant where the PPI complaint has been upheld? Is this true???

Have tried to attach excerpt from letter ........

 

Thanks Ford & dx100

Cap1 letter - Plevin003.pdf

[Ford]

it looks like they are basically saying that the plevin circs don't apply to your case.

some ppi claims were rejected but were later found to be wrongly rejected, ie plevin circs, and were/are then revisited on fos orders following the plevin case.

if a claim has been previously rejected, then it may be worth looking into whether it should be revisited.

[Determined100]

Well

- Cap1 cant supply statements as too old

- figures quoted were based on their estimation and they claim in accordance with FCA guidelines.

 

Escalated to FOS

- not complaining about PPI premiums (as cant prove otherwise) nor associated interest on premiums

- but on the 8% as this does not take account of the age of the debt.

 

 

FOS have just called me saying they cant do anything - calc is right.

Therefore, If the claim had been for an account that ended a month ago

- the amount calculated would probably be the same for an account closed 20 years ago!

 

This seems rubbish to me!

If the idea is to put you back in a position as if you had not purchased PPI

- then it surely has to reflect the age of the supposed debt?

 

They have had £230 of my money for 17 years

- and to compensate they have paid £7 plus the original £230??

 

 

They may well have followed the rules - but the rules are a nonsense!

If I'd have had the banks money for 17 years I would have been paying min 17% per annum compound interest (and the rest!)

 

Clearly it must be me - insane - and missing the point!