HFC offer

[vossy]

Hi,
I have had an offer from HFC today and wondered whether the offer received is in fact a fair offer.

Premiums paid = £99.56 and then they have added 8% compensation on to give a total of £179.89

The premiums paid were between November 2001 to November 2002.

Now I get the figures to roughly about £219 adding 8% interest alone.

Any advice from others on here, should I just roll over and accept this or should I decline the offer? They say if not accepted this letter is their final response.

Thanks

[di30]

Re: HFC offer

Hi,
I have had an offer from HFC today and wondered whether the offer received is in fact a fair offer.

Premiums paid = £99.56 and then they have added 8% compensation on to give a total of £179.89

The premiums paid were between November 2001 to November 2002.

Now I get the figures to roughly about £219 adding 8% interest alone.

Any advice from others on here, should I just roll over and accept this or should I decline the offer? They say if not accepted this letter is their final response.

Thanks

Hi Vos

So that is a year you paid of the PPI premiums, so that works out about £8.29 x 12 months = to bring it to the amount offered, plus they should calculate inline with the FOS guidelines and include the relevant interest on how the FOS calculate, as below.

I am not fantastic on the calculation side of it sorry Vos, reclaiming of the PPI is what I'm better at lol.

What I can suggest is, if you feel they've not calculated correctly, interest etc, it maybe worth asking them to send you a more of a detailed breakdown of how they came to this, in case anything is amiss.

Did they mention if they deducted basic tax via HMRC?
Just wondered, as some will do this automatically where the amount due will therefore be reduced. Below is examples of credit card and loan ppi, on how its calculated, where businesses must follow the same rule, if they have upheld and not a goodwill offer etc.

Well done Vos anyway hon x

CREDIT CARDS

1. Where card account and the PPI are still in force.

If the consumer agrees to cancellation of the PPI the financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year; and
c) send the customer a statement showing the resulting balance on the account (with details of how it was calculated).

2. Where the card account is still open but the PPI has been cancelled.

The financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year; and
c) send the customer a statement showing the resulting balance on the account (with details of how it was calculated.)

3. Where the card account has been cleared and closed and the PPI has been cancelled:

The financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year;
c) pay the customer the difference between the revised closing balance and the original closing balance;
d) pay the customer interest on that difference at 8% simple per year from the date of closure to the date of payment; and
e) send the customer details of how the revised balance, the difference and the interest were calculated.

FOS may also consider it appropriate for the financial business to pay the consumer additional compensation for any distress and inconvenience he or she has been caused, including where the financial business rejected a complaint which it knew (or should have known) would be upheld, If they consider such an award is appropriate this will be specified by the adjudicator.

LOANS

These are examples full publication can be found on Link following them


Loan and PPI policy still in place at time of FOS decision.
Lender agreed for the cancellation of the PPI policy and restructuring of loan. E.g.
Overall loan repayments £250 per month but would have been £200 without PPI, term of policy was 60 months and complaint settled after 20 monthly payments.
· Return excess monthly payments of £50 x 20 payments up to date of settlement (£1000)
· Add interest to each payment of £50 at 8%simple, from date of each payment until lender repaid.
· Arrange loan to be restructured, so remaining 40 monthly payments reduced to £200
· Pay borrower £300 for extra inconvenience caused.

Loan and PPI policy terminated early before FOS decision.
Overall loan was for £23,000 (monthly payments £430) – but it would have been £18,000 with monthly payments of £340 without PPI. Policy term was 60 months; loan and policy cancelled are 23 monthly payments.
Borrower was required to pay £15,500 to settle the loan (after the business had taken account of the rebate of premium he was due of £1,200; but if he had not had PPI added to loan, the smaller loan of £18,000 would have cost £13,000 to settle at the same point.
So borrower had paid lender £90 a month more than he would have done, had the financial business not mis-sold the PPI policy; and £2,500 more to settle the loan after 24 months.
· Return 24 monthly payments of £90 to date of settlement (£2,160)
· Calculate difference between settlement costs incurred when borrower ended loan early and those he would have incurred had he settled the loan without the additional PPI element. (£15,500 - £13,000 = £2,500) pay difference to borrower.
· Add interest to each payment of £90 at 8% simple, from date that excess was incurred.
· Pay borrower £400 for extra inconvenience.

Loan and PPI policy ran to term before FOS decision
Overall loan was £7,500 (monthly repayments of £250) – but it would have been £6,000 with monthly repayments of £200 without PPI. Term of Loan and policy 36 months. So borrower had paid £50 more per month than if PPI not been mis-sold.
· Return £50 x 36 months of the loan (£1,800)
· Add interest to each excess payment of £50 at 8% simple, from date that excess was incurred.
· Pay £200 for extra inconvenience.


SUCCESSIVE SINGLE-PREMIUM PAYMENT PROTECTION INSURANCE

The exact approach to calculating compensation will depend on the overall circumstances of the individual complaint. In particular the calculations of compensation will vary according to the present status of the most recent loan and PPI policy. The financial business will be expected to consider the four scenarios set out below to ensure that the calculations are appropriate.

1. the most recent loan and the most recent PPI policy are still in force;
2. the most recent loan is still in force but the most recent PPI has been cancelled or has expired;
3. all the loans have been settled early and all the PPI has been cancelled;
4. the most recent loan and the most recent PPI policy have run the full term.

plus also additional compensation for any distress/inconvenience including where the financial business reflected a complaint which if knew (or should have known) FOS would uphold.

Subject to the consumer agreeing to cancel any PPI policy that was mis-sold and is stillin force the financial business should:

(A). In respect of each loan:
- recalculate the loan and the payments to what they would have been if the consumer had taken the loan without PPI
- repay to the consumer the amounts by which the payments actually made exceeded the recalculated payments;
- pay the consumer interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid;
- recalculate the balance that would have been outstanding at the end of each loan had the recalculated loan not included PPI.

(B) Calculate how much of the balance that was carried forward to the subsequent loan related to the cost of the PPI policy taken out for the previous loan: and
- repay to the consumer all amounts paid under each subsequent loan in respect of the carried forward balance, including interest and charges;
- pay the consumer interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid.

(C) Where the most recent loan is still in force and it includes the cost of the most recent PPI policy and/or any balance carried forward from the cost of previous
PPI Policies, the financial business should restructure the loan or arrange for the loan to be restructured so that the balance is reduced to the level that it would
have been if it had not included any of the costs of the mis-sold PPI policies.

(D) Set out in writing for the consumer details of the calculations under (A) (B) and (C).

[vossy]

Re: HFC offer

Thanks Di, no tax deducted on that.

Probably best just to accept this one I think, I don't want it dragging on for another 3 months to end up back here again.

Thank you Di

[di30]

Re: HFC offer

Thanks Di, no tax deducted on that.

Probably best just to accept this one I think, I don't want it dragging on for another 3 months to end up back here again.

Thank you Di

Vos,

You must do what you feel is right for you, well done!

[vossy]

Re: HFC offer

Vos,

You must do what you feel is right for you, well done!

Yeah well it was a bonus one, I really didn't know I had this one, money for nothing almost

[di30]

Re: HFC offer

Yeah well it was a bonus one, I really didn't know I had this one, money for nothing almost

A bonus win then! YES!

[pompeyfaith]

Re: HFC offer

I do not see how tax can be deducted as he would have already paid income tax on this as no doubt it came from net earnings and is a refund.

The only tax I can see owed is capital gains on the stat interest part but then if he is still under the tax threshold it still would not be due.

As di says they should as part of the offer send you a full breakdown of how it was calculated.

[vossy]

Re: HFC offer

Okay I have an update on this one.

After accepting the offer and filling in the form the only way they will pay is by bank transfer, so I filled in my bank details (the same bank account that payments were taken from) and sent it back.

Today I have a letter saying that my signature does not match the one on file and to provide a 'certified copy' of my signature on either a passport or a driving licence.

What bollocks is this game they are playing?

They go on to say that a "certified copy" will only be accepted signed and dated "original seen" by the usual list of wankers but included in the list is "banker" - yes, banker! The most bloody corrupt of the lot, oh and I note they left coppers off their list as well.

I was thinking of just writing to say its the same account that you took the payments from as it is now so what is the problem?

Unless anyone has a better idea.

[pompeyfaith]

Re: HFC offer

I was thinking of just writing to say its the same account that you took the payments from as it is now so what is the problem?

Is exactly the term I used when getting back £9k from the co-op, so yes indeed if the account was good enough for them to take payments it is also good enough to refund.

I would add if they are not forthcoming with YOUR money a complaint WILL be made to the regulators

[di30]

Re: HFC offer

I note this happens to be a regular issue with this business, in my opinion it's absolutely B*LL!!!!

I agree with Pompey

[pompeyfaith]

Re: HFC offer

Bullshite indeed as it is a well known fact that a signature will not always be an exact match especially if those two signatures are years apart.

The fact remains they used the account without issue to take payments so visa versa should happen.

[pompeyfaith]

Re: HFC offer

Furthermore they was not bothered about meeting regulation when they sold the PPI so what is so different now? oh yeh they think they are giving away there money which is not the case.

[di30]

Re: HFC offer

Furthermore they was not bothered about meeting regulation when they sold the PPI so what is so different now? oh yeh they think they are giving away there money which is not the case.

Exactly Pompey

[vossy]

Re: HFC offer

Thanks everyone - letter on its way.

[di30]

Re: HFC offer

The best of luck Vossy!

And how dare they mess our friend about