09 Mar 2015

A question about : PPI "Offers"

Apols if this has been covered before. I couldn't find it.

I put a claim in in 2012 for mis-selling PPI on an HBOS mortgage. That claim amounted to some Ј7.5K plus interest - circa Ј12K total inc interest calculated up to now.

It was rejected at the time.

Due to some negatively life impacting personal events contacting the ombudsman to appeal was not top of my list.

Around 6 weeks ago I was contacted out of the blue to say that this decision was being reviewed as part of treating customers fairly - I.e. I was on the borderline/not enough info pile last time around.

After submitting more details I was paid me 1/3 of what I claimed.

This is without me even agreeing it - it's in my bank already, even before the letter detailing the payment was received.

The accompanying letter seemed to be a take it or leave it letter which implied if i challenged it I would potentially lose the 1/3. It's wording was As a final response I'd like to offer you a payment of Ј3998.83 and put you back in the position you would have been had you not purchased the policy

I have contacted them to say what about the other Ј8K

Couple of questions.
- Has anyone else experienced this and have any advice?
- Can they change their mind and take back the Ј4K? On the phone they said it was mine, but to be honest I think the person I spoke to started that day...

Thanks in advance

Best answers:

  • They have upheld your complaint and given you what you are entitlted to. You probably calculated your interest wrongly, it's 8% simple interest, not compound.
  • Hi Taff. Thanks for response.
    Maybe I was not clear. I paid in total around Ј7.5K BEFORE any interest calculations.
    What they offered was just under Ј4K including interest.
    It breaks down as Ј2768 refund of premiums plus Ј1538 interest less tax of Ј307.
    What I want to know is how they got to the base figure.
    All the letter says is "I've calculated your payment by looking at the overall amount you paid towards the MPPI policy"
    I thought it was all MPPI - It was an HBOS TMPP policy that covered sickness and redundancy.
  • it's possible they have refunded only pat of your MPPI not all of it, such as just theunemployment part.
    Wait for their response to se what they say.
  • Unless you can show you are immortal or have no dependents - so that the house could be sold and clear off the mortgage in the event of your death without impacting kids/spouse then take the MPPI refund and be happy, life insurance and critical illness will protect your home from repossession
  • Thanks all. Clearer than the letter I received. At this time I had no dependants and a partner with her own property so pretty sure didn't bother with the life component. Be interested to see how they calculated the split.
    To be honest to me it all seems like it's payment insurance but hey I'm 4k up from where I was last week so pretty chuffed!