Halifax PPI offer - is it correct?

[MattyA]

Re: Halifax PPI offer - is it correct?

They are talking utter bollocks and are trying to short change you.

Why have they only included 8% up until 2006?

Why not contractual rate interest ?

Depending how long standing this account is and what the balance is there is also a case for contractual interest & 8% simple interest in some instances.


You are correct in your thoughts that you should be paid 8% from 2006 to date , whether or not the account had beed sold on.

All of mine had been defaulted prior to my starting my PPI reclaims.


They are trying to con you - It is soooooo wrong.

How much info have you got in the way of statements etc?


Matt

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Just a thought, when it was passed on to the recoveries team did they freeze the interest? (If this is the case, maybe that is what they mean, is that they are paying to that actual date it ceased with them).

If interest was still chargeable then in my opinion, this should also be included in the refund.

I think they are passing it on to the payments team to check the account, maybe they will find that there is further interest to come back.
I would give a further week and if nothing heard, is to contact them, or email the chief executive officer (CEO), tell him that you want to avoid taking the matter to the FOS if possible, but want the matter to be resolved as soon as possible.
(Obviously by explaning the interest issue) ;-) (Your friend of course)

They stopped interest when it was defaulted in 2006 so I don't expect any accumulated interest after that date.

My argument is that:
(a) they owed a refund of £2787 in 2006 so 6+ years at 8% pa should be added to that, or
(b) they sold the debt in 2008 (effectively taking the equivalent of a F&F from Cabot) so 4+ years at 8% should be added.

If that makes sense.

[di30]

Re: Halifax PPI offer - is it correct?

Here is the latest from Halifax:

On one hand it says the PPI calculations are right and then says it will be passed to the payments team.

Hard to tell what they are waffling on about, opinions sought please.

Hiya

Thank you for posting this up.

Just a thought, when it was passed on to the recoveries team did they freeze the interest? (If this is the case, maybe that is what they mean, is that they are paying to that actual date it ceased with them).

If interest was still chargeable then in my opinion, this should also be included in the refund.

I think they are passing it on to the payments team to check the account, maybe they will find that there is further interest to come back.
I would give a further week and if nothing heard, is to contact them, or email the chief executive officer (CEO), tell him that you want to avoid taking the matter to the FOS if possible, but want the matter to be resolved as soon as possible.
(Obviously by explaning the interest issue) ;-) (Your friend of course)

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Here is the latest from Halifax:

On one hand it says the PPI calculations are right and then says it will be passed to the payments team.

Hard to tell what they are waffling on about, opinions sought please.

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

My friend got a telephone call from the Halifax PPI team yesterday. She told them, "Everything in writing, please". They tried to get her to go through the security questions but she refused (I have hammered that into her). Within 30 seconds they telephoned me so I gave them the same treatment, of course.

Makes you wonder what it is they want to say on the phone but don't seem to want to put in writing, doesn't it?

[MattyA]

Re: Halifax PPI offer - is it correct?

I'd also take the opportunity to ask them about the refund of default sums and associated interest.

Might as well go for the lot at this juncture.

Matty

[MattyA]

Re: Halifax PPI offer - is it correct?

They are simply trying to short change you / get away with paying you less than they need to.
Tell them so and ask them to show that they have calculated your redress in accordance with the FOS guidelines......because as it stands you dont believe that they have.

Matty

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

The offer letter before the cheque was sent says, "As our final response, we are offering you a payments of £2787.20 to bring your complaint to a conclusion". There was nothing to sign and return.

The letter attached to the cheque says, ".... please find enclosed our cheque in settlement".

The cheque is incorrectly made-out; showing Mrs instead of Miss so maybe the bank would not accept it in any case.

The money isn't desperately needed right now so I will just hold the cheque until they respond to my letter asking for a full breakdown.

I am trying to get my head around why the are not paying the 8% interest from August 2006. They defaulted the account in 2006, sold it to Cabot in 2008 and it was settled (F&F) late last year. It wasn't terminated after the default, presumably because it was a credit card account. I don't know when statements stopped (years ago) but the SAR should answer that.

The PPI was cancelled (by them) when the account was defaulted.
So I guess they are going to claim it was still an open account with a negative balance and the 8% is only payable for the time the account is, or notionally would have been, in credit.

Credit card companies seem a lot more devious with PPI reclaims than other lenders.

Thanks for all the advice. Other opinions or comments still welcome.

[pompeyfaith]

Re: Halifax PPI offer - is it correct?

The FSA is dishing out fines at the moment for the way PPI complaints have been handled lloyds bank was the latest last week and I am sure more will follow.

[pompeyfaith]

Re: Halifax PPI offer - is it correct?

Yes hold onto the cheque until you get a response to your letter and then take it from there according to there reply.

[MattyA]

Re: Halifax PPI offer - is it correct?

Hi Matty and thanks for the long and encouraging reply.

We don't have any statements but the SAR went off to them on 5th February. I have already had the 'provide account number, date of birth, addresses' letter, even though these were in the SAR. A suitable reply has been sent.

The account was opened in 2003, defaulted in 2006 and sold to Cabot in 2008 so statements are a possibility.

The offer they made was:
Refund of premiums: £2145.14
Refund of interest applied to PPI: £661.26
Total interest at 8% until 9th Aug 2006: £30.80

Their letter says: "As your account was passed to recoveries on 9th August 2006 we have calculated your refund as at that date".

Subject to getting statements, default charges, etc. will become the next claim.

What with refusing the claim to begin with, ignoring two letters, and then coming back with this offer, this bunch are getting my goat now. Fortunately, my friend's financial situation is not as bad as it was (thanks in no small part to this site). Unlike many PPI claimants, she is not desperate for the money (it is needed but not desperately).

It is encouraging to read that you have achieved so much due to your perseverance - many thanks.

I reckon they owe you at least £4312.96 based on 'their ' figures(£2837.20 + 6years 6 months 8% Simple interest @ £18.92 / mth = £1475.76)

Would need to see what they send you in the way of a detailed breakdown / in response to your SAR to work it out properly.

Matty

[MattyA]

Re: Halifax PPI offer - is it correct?

Right...

Heres where you will get differing opinions & I am not sure which / what is the right answer.

You could reject it if you dont need the money.....which is what some people will advise.

I have accepted their offers in partial settlement, cashed the cheques and have then gone on to fight them for more money and have won.

With others, they sent me a settlement figure along with a form for me to sign 'in full & final settlement' before they sent the cheque...these I refused.

Might be worth holding the cheque for now and seeing what response you get to your letter.

Did their covering letter say in 'full & final' settlement?

Might be worth giving them a call to discuss ,asking them if they have recieved your letter and explaining that you dont think they have calculated the redress in accordance with the FOS guidelines and that you need their detailed breakdown of how they have calculated the redress before you can accept their offer in full and final settlement.

Matty

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Now it gets interesting.....

This afternoon's post brought a cheque from Halifax for £2787.20.
Suddenly they seem in quite a hurry to pay.

They will not yet have received my letter asking for a breakdown of the offer, in which I said 'any payment made will be regarded as a part payment'.

So, where from here?
Hold the cheque until they reply?
Cash the cheque?
Send the cheque back?

Anyone had this happen or can anyone advise, please?

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Hi Matty and thanks for the long and encouraging reply.

We don't have any statements but the SAR went off to them on 5th February. I have already had the 'provide account number, date of birth, addresses' letter, even though these were in the SAR. A suitable reply has been sent.

The account was opened in 2003, defaulted in 2006 and sold to Cabot in 2008 so statements are a possibility.

The offer they made was:
Refund of premiums: £2145.14
Refund of interest applied to PPI: £661.26
Total interest at 8% until 9th Aug 2006: £30.80

Their letter says: "As your account was passed to recoveries on 9th August 2006 we have calculated your refund as at that date".

Subject to getting statements, default charges, etc. will become the next claim.

What with refusing the claim to begin with, ignoring two letters, and then coming back with this offer, this bunch are getting my goat now. Fortunately, my friend's financial situation is not as bad as it was (thanks in no small part to this site). Unlike many PPI claimants, she is not desperate for the money (it is needed but not desperately).

It is encouraging to read that you have achieved so much due to your perseverance - many thanks.

[MattyA]

Re: Halifax PPI offer - is it correct?

Halifax sold the account to Cabot. I negotiated a F&F with Cabot before I (she) made the PPI claim so that any PPI refund would not go to Cabot.

If we can get this up from £2700+ (by getting 6+ years of 8%) the result will be £13,200 of debt gone and a profit of about £800 on the total deal.

Now that would be Poetic justice in the extreme.

You are on the right lines for sure, in accepting the payment in PART settlement of the claim and asking for a detailed breakdown of how they have arrived at their redress figure.

As the others say you are being short changed here.

Do you / your friend have copies of all the statements going back to when the account was opened?

If so brilliant (let me know) and if not SAR them and see what comes back,however they might try to hide behind the 6 year rule on what / how far they have to go back.

You are entitled to the refund of PPI premiums + any contractual interest applied to these charges by them ,up until the point the account was settled and then 8% simple interest from then on until the date that the claim is settled fully.

PS: If they can prove they did not apply contractual interest (they will almost certainly try and argue that they didnt) you will be able to apply 8% interest to each and every PPI premium from the time it was applied to the date the claim is settled.

Have you reclaimed default charges (late / over limit fees)? , if not do so , along with any contractual interest applied to these charge and 8% simple interest from the point at which the account was closed / settled to date.

I have done all of the above on a number of accounts and have recentley settled 2 long standing battles (Amex & Mint) to within a midgies of what I had calculated the redress should be,albeit after a fight.

You need to go to the FOS , but dont expect miricales from them, keep pressing the lender directly by writing & complaing to CEO directlty (and repeatedly).

You will get there eventually if you fight them.

Well done for getting so far & the thought process which has resulted in you wanting to challenge their offer ,so many many people dont and have been short changed yet again by the banks.

Good luck - I will help wherever I can.

Matty