Halifax PPI offer - is it correct?

[di30]

Re: Halifax PPI offer - is it correct?

The best of luck!

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Right, the letter has gone off today asking for a detailed breakdown of the offer and asking why the 8% stopped in August 2006. I have also said that any payment they make in the meantime will be regarded as a partial settlement. They have 14 days to respond.

I guess it will be with the FOS before they reply.

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

So is the refund actually being awarded to your friend, or are they using it to reduce any debt owed?
If Halifax sold the account on with all liabiliities, as far as I'm aware this is nothing to do with Cabot.

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.

[di30]

Re: Halifax PPI offer - is it correct?

Hiya Do they mean?

Well I must agree with Niddy.
There is interest to add all the way and not just the fact that it was passed on to recoveries in 2006, there is something quite not right about this.

Maybe your friend could write one more time to question this and give them 14 days, if your friend hears nothing by 14 days, then yes complain to the FOS. The FOS will also be expecting them to pay interest all the way, that should be standard procedure.

So is the refund actually being awarded to your friend, or are they using it to reduce any debt owed?
If Halifax sold the account on with all liabiliities, as far as I'm aware this is nothing to do with Cabot.

[di30]

Re: Halifax PPI offer - is it correct?

Hellooooo


And thank you folks.
I shall take a looksie at it now.

[The Tech Clerk]

Re: Halifax PPI offer - is it correct?

As Niddy states go the FOS

[Never-In-Doubt]

Re: Halifax PPI offer - is it correct?

You don't need guidelines. It's clear as muck.

You get interest up until the point you became aware of and applied for a refund based on the missale.

You should reject it and look at the FOS

NB: no need to tell the FOS the history etc all they need to know is the account was SETTLED last year and you then learned about the ppi etc so are reclaiming. That's it.

[DoTheyMeanMe]

Re: Halifax PPI offer - is it correct?

Thanks Niddy, that is my thinking but somehow I am struggling to get my head around it. As always, they sound so damned cock-sure of themselves in their letter.

The difference is over £1400 so worth making a fuss about. It must be quite a common scenario so it is a pity the FSA guidance doesn't use it as one of their examples.

[Never-In-Doubt]

Re: Halifax PPI offer - is it correct?

Well as you became aware of the missale & of the subsequent claim/refund in 2012; they'd pay interest until 2012.

Plus 6 years interest could be a few hundred quid so worth arguing it. Of course as the account is SETTLED the bank have no right to do anything with the refund other than return it you via cheque.

[DoTheyMeanMe]

If I am posting in the wrong place please move me.

Quick background:
(again, for a friend)

Halifax Credit Card
Balance at default approximately £13,000
Commenced 2003
Defaulted 2006
Sold to Cabot
F&F agreed and paid to Cabot in 2012 = £3300.

Immediately after the F&F payment was made a PPI reclaim was made to Halifax. As expected, this was rejected. Three very firm letters later, Halifax agreed the PPI was mis-sold.

Halifax are offering a payment of £2787.20, which is made-up as follows.

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

9th Aug 2006 was the date the account was 'passed to recoveries', according to their letter. This means they are only offering the 8% interest up to that date.
Does this seem right?
I cannot find any reference in the FSA handbook on PPI Complaints relating to a terminated credit card account.

My thinking is:
If their mistake with mis-selling of the PPI had been discovered in 2006 the refund due would have been some £2700 at that point. To retain this amount for a further six and a half years and then not pay the 8% interest on it does not seem right.

Their offer letter says:
This represents a refund of all the PPI premiums paid (inclusive of interest), plus simple interest at 8% for any period where your account was in credit, or from the date of the card being closed to the date of payment. This has also been adjusted by other factors that are relevant to your circumstances.

It subsequently goes on to say:
As your account was passed to Recoveries on 9 August 2006 we have calculated your refund at this date. We can confirm that any subsequent payments you have made to your account would not affect our calculations.

Views or further guidance will be much appreciated.