FOS and PPI

FOS adjudicated PPI claim in my favour back in March. I was asked to sign their settlement form and was told Egg would be in touch with the PPI refund and calculations.

In April Egg reduced by loan by £400 PPI whereas they should have reduced it by £800. They also sent me a cheque for half of the 8% stat interest I was due.

I have gone back to the FOS asking them to review Egg's offer.

Egg have responded to the FOS standing by their calculations, save and insofar that they say i am due a further £50 reduction of PPI. I say their 'calculations' but in fact all Egg have provided is a list of figures with no key to understanding how they derived their figures.

My adjudicator is at sea and says he has to go to his superior for advice on what happens next.

My question is: What can I expect the FOS to do now?

[SpringerSpaniel]

Re: FOS and PPI

Make sure your case is reviewed by someone more senior.

[Paul210]

Re: FOS and PPI

in answer to your question, knowing FOS not a lot, but then you never know, they might surprise you.

Just to clarify, on your stat interest calculations were you using simple or compound interest?

[The Debt Star]

Re: FOS and PPI

Simple interest only.

The problem here is that Egg sold me PPI on a loan and credit card that we subsequently consolidated into another loan. They accept they owe me PPI for the loan and card but cannot get their heads around the fact that they also owe me the cash equivalent of the PPI that was then carried over into the new loan ie which was capitalised into it as it was a sinmgle premium PPI policy. Plus interest on that of course.

The FOS understood the issue and gave a very detailed adjudication and calculation directions to the Bank. The Bank have ignored that. The FOS however seem to have gone like a limp rag in response, which is extremely frustrating.

I was wondering what the FOS position would (should) be where a settlement has been agreed and the Bank then tries to pull a fast one and offer a derisory sum.

The problem being that we agreed to settle but without knowing what the Bank's calculated repayment would be. A catch 22 and I had always thought the FOS would be there to rap Egg's knuckles but that itsn't what's happening.

[SpringerSpaniel]

Re: FOS and PPI

I think you can apply to a county court for enforcement of an FOS adjudication - it is binding on the bank / lender / company but not on the consumer.

[The Debt Star]

Re: FOS and PPI

Good point Springer. The problem I would have is that the bank are not divulging their methodology in calculating the PPI redress. That could mean (?) any CC claim gets moved out of the fast track onto the multi-track - despite the size of the claim. There might then be adverse costs implications, despite having the backing of a FOS adjudication.

[SpringerSpaniel]

Re: FOS and PPI

I would have thought the FOS adjudication had some protective effective in costs, as it is binding on the defendant and they are acting in bad faith not to honour it.

Issuing a claim might well provoke them to realise it would be much cheaper to pay the FOS award in full than to have a legal battle ?

[The Debt Star]

Re: FOS and PPI

well, its certainly the next step if the FOS will not / cannot help further.

would be the first time I'll have taken court action against a creditor

[skv123]

Re: FOS and PPI

I'm sure someone with more knowledge will correct me but my understanding was that an Adjudication was not binding and only a final decision by an Ombudsman would be.

[andrew1]

Re: FOS and PPI

I think skv is correct. Also, have you thought of charging compound interest and what does anyone think about the FOS's opinion on Compound Interest payment based upon Sempra Metals v Inland revenue? Would the FOS uphold that?

[The Debt Star]

Re: FOS and PPI

I'm sure someone with more knowledge will correct me but my understanding was that an Adjudication was not binding and only a final decision by an Ombudsman would be.

ah, ok, so that implies that I can still appeal to an ombudsman then. I was wondering if it can, post adjudication.

[Caspar]

Re: FOS and PPI

FAQs Businesses - our rules powers, appeals

I realise this is for businesses, but in the lack of anything contrary I can find relating to individuals I would assume the same rules apply?

[di30]

Re: FOS and PPI

This is where mine is at now TDS, the Adjudicator have not actually rejected but was unable to conclude due to a relationship issue with mine, so because of this its going to the ombudsman for review.

Well I suppose my case is like a rejection really, but you do have the opportunity to have to reviewed by someone more senior, such as the Ombudsman if your not happy with the outcome made by your Adjudicator.

[The Debt Star]

Re: FOS and PPI

This is where mine is at now TDS, the Adjudicator have not actually rejected but was unable to conclude due to a relationship issue with mine, so because of this its going to the ombudsman for review.

Well I suppose my case is like a rejection really, but you do have the opportunity to have to reviewed by someone more senior, such as the Ombudsman if your not happy with the outcome made by your Adjudicator.

The difference is that I have the adjudication, but what was not agreed at the agreement stage was the amount I would receive.

The principles of the calculation were established by the FOS but the bank appear to have disregarded these.

Now the FOS appear to be unsure what to do.

I have asked if it can go to an ombudsman but have been told this could take a further 8 to 9 months. Also, the adjudicator is unclear if it even can go to an ombudsman at all.

I wanted to gauge if anyone had any direct experience of this as I don't want to be fobbed off by the FOS.

[di30]

Re: FOS and PPI

The difference is that I have the adjudication, but what was not agreed at the agreement stage was the amount I would receive.

The principles of the calculation were established by the FOS but the bank appear to have disregarded these.

Now the FOS appear to be unsure what to do.

I have asked if it can go to an ombudsman but have been told this could take a further 8 to 9 months. Also, the adjudicator is unclear if it even can go to an ombudsman at all.

I wanted to gauge if anyone had any direct experience of this as I don't want to be fobbed off by the FOS.

TDS back over a year ago one of my hubby's credit card ppi cases was paid out and I noted even after the payout the mis calculation, so they agreed (the same adjudicator who upheld his complaint) he then had taken the case back in with the calculations. we had then sent them to what you call their calculation team.

Yes it taken about 5 months, but it was agreed there was a miscalculation and the bank sent a further cheque payment of a few hundred quid later on.

I do understand what your saying though, you want to get this right first time round, and that is correct it can take some time waiting for the Ombudsman, even more so now with the backlog.
I always assumed they had someone like a line manager working alongside the adjudicator to make sure things were right.