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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.
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.
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