Barclays CC Redress to be recalculated after FOS adjudication

[ToonExile]

In August 2018 I had my complaint against Barclay card upheld for my PPI Insurance held on my Barclay card from 1992 until 2004, the card continued without PPI from 2004 to 2011.

I was unhappy with the redress offered as I knew that this card would have had an average balance of around £2400 a month during the period up to 2004.

Barclay card offered me compensation which was inadequate. They stated as they had no records of my account previous to May 2004 (my PPI was stopped in April 2004, I found that to be a little too convenient that all my statements prior to May 2004 had gone missing), that they had created an offer based on historical averages for a typical customer.

I wrote to Barclay Card asking them to reconstruct the balance on the card from Nov 1992 to Apr 2004 based on my spending patterns on the same card from May 2004 to Nov 2011. They refused to do so. As a consequence of this refusal I contacted the FOS. At the same time I raised a SAR which I received in due course with statements from May 2004. I passed these statements to the FOS as part of their investigation.

I have now received the FOS adjudication. The adjudication states that Barclay Card have acted unfairly in this instance and need to reconstruct my credit account from 1992 to 2004 using an average balance of my card between May 2004 and Feb 2007 when my credit limit increased. They are to use the average balance as the starting point and then work on reconstructing the account from that point.

My question is what methodology will they use as I can find nothing indicating how a calculation will be done in these circumstances either on the FCA or FOS websites.

I do have a copy of the FCA Handbook PS10/12 which has working examples of how to calculate PPI in most instances, but I am afraid not in this situation.

I would like to be able to work out what is likely to be a fair and reasonable offer from Barclay Card if and when it arrives, how do I do this.

[Amethyst]

Well, they'll take the average balance for the period, work out what ppi would have been charged on that, then apply the amount to each month from 1992 to 2004, into their redress calculator adding the 8% stat interest from each individual month .... could add up a fair bit ...

have the bank accepted the adjudication ?

[ToonExile]

The bank have until Friday 8th March to accept the adjudication, so as of today they have not accepted. Hopefully they will accept or it will just go to the ombudsman. I know that will take at least another 6 to 12 months. This is my first experience with the FOS so do banks normally reject the adjudicators decision?

[Amethyst]

Tbh in this circumstance I'd expect them to challenge it - was your credit limit the same from 1992 all the way to 2007 ?

[ToonExile]

On the credit limit it was pretty static for a very long time and it did not increase until 2007. I have statements from 2004 showing the same credit limit. Was it the same between 1992 and 2004, I have no idea but it would have been around that level for the majority of that period. On the other side of the coin I would have to accept that the interest level applied in 2004 would be the same across the whole period between 1992 to 2004 and as we all know interest rates can fluctuate during such a long period. One further point do you know what the likely PPI rate that was likely to have been used. I have seen 0.79 and 0.89 per £100 of any balance with Barclaycard.

If the bank do challenge this I would be disappointed but not surprised so it would then just go to the ombudsman. I understand that the ombudsman support the adjudicator decision in around 90% of cases. I can live with that.