Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

[leclerc]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I'll post this here as I've been commenting throughout this thread about my FIRST DIRECT PPI claim.

Right, the bank originally offered me a f&f PPI refund of £150. They said they didn't keep statements going back more than 6 years and that was all that was showing.

They had sent me statements going back to 2003 under my SAR however and I had to return these.

First Direct have now offered £2,000 in PPI inclusive of interest.

However, the stat interest is only £35 and this, plus the "ordinary" interest paid on the premiums of £850, is being used against my outstanding loan to them.

First direct have said (quote):

"I note your comments about the statutory interest being paid direct to you, rather than toward the outstanding debt. I have refered this matter further and we are within our rights to insist the money is used to reduce your debt."

Any thoughts?

Was there any arrears on the loan?
------------------------------- merged -------------------------------
As an aside for customers of LloydsTSB, I've been dealing with some missold PPI and they have given me some indication of timescale:


"As a guide we aim to complete your redress within 21 working days. If you do not receive your payment within this time period then please let us know and we can update you further. Due to the high volume of work it is not possible to guarantee any refund timescale as each case is treated on an individual basis. Please be assured we are arranging additional resource as quickly as possible in order to improve the service our customer’s receive. "

[The Debt Star]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

It was never "a loan" as such. The debt is an amalgamation - unilaterally by the Bank - of a credit card, loan and an overdraft - into one super debt attached to and treated as an overdraft to my FD current account. It has been adminsitered by their collections dept for the past 5 years that way. I would imagine though that the CC and original loan were in arrears, when financial meltdown occured at the time, as everything else was! Does this info help?

[leclerc]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

It was never "a loan" as such. The debt is an amalgamation - unilaterally by the Bank - of a credit card, loan and an overdraft - into one super debt attached to and treated as an overdraft to my FD current account. It has been adminsitered by their collections dept for the past 5 years that way. I would imagine though that the CC and original loan were in arrears, when financial meltdown occured at the time, as everything else was! Does this info help?

Is it similar to "the one account" ie that you have one big overdraft which is slowly but surely paid off?

[The Debt Star]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

no, its not a formal product or 'owt like that. I had a current account plus overdraft, a CC and a loan. All with FD and when I defaulted on CC and loan they transferred the balances to the current account and suspended banking facilities. have been paying them ever since, quite a high repayment rate too, no DMP. But of course the CC had PPI sold with it and they are willing to reduce the debt by £2000. Thats fine but they are saying that they can apply the stat interest towards it too........

[leclerc]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I think they are within their rights, but so are you to refer it to the FOS with regards to whether the figure that they have given is correct

[seller 17]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Here it is:


PPI compensation companies investigated - September - 2011 - Which? News


MSE & Which? team up for PPI claims handler guidance

More on CMC's.

http://www.moneymarketing.co.uk/1038...ter&email=true

So Mr Robert Sinclair, where does the consumer go then who has no means of repaying his interest only mortgage, sold into his retirement, after being placed with a "back St lender" charging rediculous interest?? All recommended by your members with Fees of over £2500 thrown in for good measure?

Some i have seen have lost their house due to your memebers advice! what about these consumers Robert, because they are outthere.

[The Debt Star]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I think they are within their rights,

The figures look kosher enough. I just needed to know if they were within their rights as I had read somewhere that stat interest should be refunded to the consumer. I assume its because there were (probably) arrears that this isn't the case in this instance.

[Amethyst]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

They are within their rights unless you can show a more urgent priority debt that you need to use the stat interest for. The PPI and interest paid on the PPI should go to reducing the outstanding loan.

[seller 17]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

no, its not a formal product or 'owt like that. I had a current account plus overdraft, a CC and a loan. All with FD and when I defaulted on CC and loan they transferred the balances to the current account and suspended banking facilities. have been paying them ever since, quite a high repayment rate too, no DMP. But of course the CC had PPI sold with it and they are willing to reduce the debt by £2000. Thats fine but they are saying that they can apply the stat interest towards it too........

Have you spoken to the Tech help desk at FOS?

Contact us by phone - 020 7964 1400 - or email us at technical.advice@financial-ombudsman.org.uk

[The Debt Star]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Have you spoken to the Tech help desk at FOS?

Contact us by phone - 020 7964 1400 - or email us at technical.advice@financial-ombudsman.org.uk

Thanks, that's useful.

[Bill-K]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

As with all credit card PPI claims, there are TWO distinct elements of interest, in addition to the element of the PPI monthly premiums themselves. One is the account interest which the PPI attracted over the period of time it was being applied, and this is regarded as being available for the lender to use to offset whatever arrears there may be on the account.

The second is the element of 'Compensatory Interest.' This is usually awarded at the Statutory rate of 8% Simple, and is supposed to be awarded in compensation for the loss of use of the moneys taken by the lender for the PPI. As a form of compensation, I believe that it CANNOT be 'appropriated' by the lender - any more than other compensation awards can. I believe the claimant has the initial say in where this compensation is used - and should therefore be refunded it directly by cheque/draft/small denomination used notes/gold coin, etc.

Even the lenders seem to be confusing these two elements - and THEY should know better, IMHO !!!

......actually - they probably do. They just hope that WE don't !!!

YGM, DS

[debtisbad]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

As with all credit card PPI claims, there are TWO distinct elements of interest, in addition to the element of the PPI monthly premiums themselves. One is the account interest which the PPI attracted over the period of time it was being applied, and this is regarded as being available for the lender to use to offset whatever arrears there may be on the account.

The second is the element of 'Compensatory Interest.' This is usually awarded at the Statutory rate of 8% Simple, and is supposed to be awarded in compensation for the loss of use of the moneys taken by the lender for the PPI. As a form of compensation, I believe that it CANNOT be 'appropriated' by the lender - any more than other compensation awards can. I believe the claimant has the initial say in where this compensation is used - and should therefore be refunded it directly by cheque/draft/small denomination used notes/gold coin, etc.

Even the lenders seem to be confusing these two elements - and THEY should know better, IMHO !!!

......actually - they probably do. They just hope that WE don't !!!
U
YGM, DS

Well said and well explained. Of course, lenders would rather pay themselves, not the customer, and will peddle any lie to do so. Dispute this issue if you prefer the cash yourself.

[The Debt Star]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

The question for me is whether to jeopardise the offer over a battle over £35 worth of stat interest. I don't think I will but the principle of it aggravates....also the fact there was no compensation

[Bill-K]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

The question for me is whether to jeopardise the offer over a battle over £35 worth of stat interest. I don't think I will but the principle of it aggravates....also the fact there was no compensation

Even the lenders seem to be confusing these two elements - and THEY should know better, IMHO !!!

......actually - they probably do. They just hope that WE don't !!!

The question - to me, sir - is whether you consider £700, as opposed to £35, to be an outrageous fortune. Please read my recent dispatches.

Slings and arrows requisitioned - to follow shortly.

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

http://www.walletpop.co.uk/2011/09/0...rs-to-resolve/

Banking complaints take two years to resolve.



It takes a lot for us to complain. We can endure years of terrible service, and suffer horrible financial penalties before we finally decide to fight for our rights. The trouble is that at this point, the long wait for redress has only just begun.

It can take two years to have a complaint resolved by the Financial Ombudsman Service. So what's going wrong?


The backlog
The problem is largely one of workload. The FOS has been swamped by a deluge of claims in the past few years relating to the sale of payment protection insurance (PPI) which was so widely mis-sold that it became the basis of a whole claims trend of its own. The subsequent ruling on PPI means those individual claims no longer have to be pursued as everyone will be investigated by the financial company concerned.

However, the backlog by this stage is enormous, and the cases keep coming. The workload has doubled in the last five years and there has been a 26% increase in the number of cases.

It doesn't help that the financial institutions are fighting their corner more vehemently than ever. This means that more and more cases have to be referred up to an ombudsman for a final decision, which is more time consuming and leads to longer delays.

Very urgent cases, involving real financial hardship, are pushed to the top of the list. Everyone else must wait anything up to two years before their complaint is ruled on.

So how did it all go so wrong?
You can blame the service. You could argue that the extra staff brought on during the PPI scandal were too few and too late - although it argues it couldn't bring anyone on faster because they couldn't be trained up any quicker without cutting corners.

However to blame the FOS would be to miss the bigger picture. It is brought in when two things have already gone horribly awry. It's the fact that the financial institutions are incapable of meeting two of their most important obligations that has brought us to this horrible situation in the first place.

The banking failures
The first is that the financial company has let the customer down The products are not up to scratch, the salespeople flogging it at the firm in question have done a bad job, the product fails to work as it is supposed to, and promises have been broken. None of these things are anything to be proud of. Each of them demonstrates that the sole purpose of a financial company is to make money, and customers are simply the way they achieve their goal. If the customer suffers in the process, then so be it.

The second factor is that once something goes wrong, the company in question fails to fairly and sensibly address the issue - or it does so with so little respect for the customer that they feel they need to turn to someone else for redress. This is a very sorry state of affairs. Clearly financial companies have lost touch with the fact that they are dealing with real people. They have forgotten that the dots on a graph are real individuals with serious questions about what the business has been up to with their money. They deserve respect and attention, and for someone to take them seriously.

It was the fact that financial institutions forgot they were dealing with real people and real money that got us into the financial crisis in the first place. The game took over and making money became the one and only aim.

If these figures are anything to go by, then they have learned nothing from the process. The number of complaints is a sign that all is still rotten among the banks, and the sooner something is done to shake them up from their relentless, callous, money grabbing the better.